B. Riley Has Pessimistic Outlook of SVC FY2026 Earnings

Key Points

• B. Riley has lowered its FY2026 earnings per share estimate for Service Properties Trust to $0.67 from $0.90, maintaining a "Neutral" rating with a $3.00 price target.
• Wells Fargo also decreased its price target for SVC shares from $3.00 to $2.50, while Zacks Research downgraded the stock to a "strong sell" rating.
• Service Properties Trust has a current consensus rating of "Reduce" and a market capitalization of $458.87 million.

Service Properties Trust (NASDAQ:SVC - Free Report) - Equities research analysts at B. Riley reduced their FY2026 earnings per share estimates for Service Properties Trust in a report issued on Thursday, September 25th. B. Riley analyst J. Massocca now forecasts that the real estate investment trust will earn $0.67 per share for the year, down from their prior estimate of $0.90. B. Riley has a "Neutral" rating and a $3.00 price target on the stock.

Several other equities research analysts also recently issued reports on SVC. Wells Fargo & Company restated an "equal weight" rating and issued a $2.50 price target (down from $3.00) on shares of Service Properties Trust in a report on Wednesday, September 10th. Zacks Research downgraded Service Properties Trust from a "hold" rating to a "strong sell" rating in a report on Tuesday, August 19th. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus target price of $2.75.

Service Properties Trust Stock Up 0.7%

Shares of Service Properties Trust stock opened at $2.75 on Monday. Service Properties Trust has a 1 year low of $1.71 and a 1 year high of $4.99. The business has a 50-day moving average of $2.72 and a two-hundred day moving average of $2.45. The company has a market capitalization of $458.87 million, a P/E ratio of -1.65 and a beta of 1.86. The company has a debt-to-equity ratio of 5.79, a current ratio of 0.04 and a quick ratio of 0.04.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.34 by $0.01. Service Properties Trust had a negative return on equity of 34.61% and a negative net margin of 14.73%.The company had revenue of $503.44 million during the quarter, compared to the consensus estimate of $497.53 million.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC bought a new position in shares of Service Properties Trust during the first quarter worth about $65,000. Bank of America Corp DE boosted its position in Service Properties Trust by 140.3% during the fourth quarter. Bank of America Corp DE now owns 440,652 shares of the real estate investment trust's stock valued at $1,119,000 after purchasing an additional 257,260 shares during the last quarter. Two Sigma Advisers LP boosted its position in Service Properties Trust by 805.0% during the fourth quarter. Two Sigma Advisers LP now owns 400,900 shares of the real estate investment trust's stock valued at $1,018,000 after purchasing an additional 356,600 shares during the last quarter. Envestnet Asset Management Inc. boosted its position in Service Properties Trust by 56.9% during the first quarter. Envestnet Asset Management Inc. now owns 591,407 shares of the real estate investment trust's stock valued at $1,544,000 after purchasing an additional 214,508 shares during the last quarter. Finally, Brigade Capital Management LP acquired a new position in Service Properties Trust during the first quarter valued at approximately $2,375,000. 77.62% of the stock is currently owned by institutional investors.

Service Properties Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 14th. Investors of record on Monday, July 21st were issued a dividend of $0.01 per share. The ex-dividend date was Monday, July 21st. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.5%. Service Properties Trust's dividend payout ratio (DPR) is presently -2.40%.

Service Properties Trust Company Profile

Service Properties Trust Nasdaq: SVC is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.

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