Sumitomo Mitsui Trust Group Inc. Sells 511,499 Shares of Service Properties Trust $SVC

Key Points

• Sumitomo Mitsui Trust Group cut its Service Properties Trust stake by 80.5%, selling 511,499 shares in the third quarter; it retained 123,816 shares worth about $797,000.
• Service Properties Trust reported a quarterly loss of $0.68 per share, missing analyst expectations of a $0.29 loss, despite revenue of $399.5 million exceeding estimates.
• The trust declared a quarterly dividend of $0.05 per share, equal to a 3.8% annualized yield. Analysts’ consensus rating was “Hold,” with a $12.05 target price.

Sumitomo Mitsui Trust Group Inc. cut its holdings in Service Properties Trust (NASDAQ:SVC - Free Report) by 80.5% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 123,816 shares of the real estate investment trust's stock after selling 511,499 shares during the quarter. Sumitomo Mitsui Trust Group Inc. owned about 0.10% of Service Properties Trust worth $797,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of SVC. Farringdon Capital Ltd. acquired a new stake in Service Properties Trust during the 2nd quarter worth $37,000. Abel Hall LLC lifted its stake in shares of Service Properties Trust by 69.3% in the 1st quarter. Abel Hall LLC now owns 29,395 shares of the real estate investment trust's stock valued at $40,000 after purchasing an additional 12,033 shares during the period. Sequoia Financial Advisors LLC acquired a new position in shares of Service Properties Trust in the 2nd quarter valued at $66,000. Squarepoint Ops LLC acquired a new position in shares of Service Properties Trust in the 2nd quarter valued at $71,000. Finally, Vise Technologies Inc. bought a new position in shares of Service Properties Trust in the 3rd quarter worth $74,000. Institutional investors and hedge funds own 77.62% of the company's stock.

Service Properties Trust Price Performance

Service Properties Trust stock opened at $5.20 on Monday. The company's 50 day simple moving average is $6.53 and its 200 day simple moving average is $8.25. Service Properties Trust has a fifty-two week low of $5.18 and a fifty-two week high of $12.15. The firm has a market capitalization of $675.01 million, a price-to-earnings ratio of -0.74 and a beta of 1.78. The company has a debt-to-equity ratio of 2.39, a current ratio of 0.02 and a quick ratio of 0.02.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last issued its quarterly earnings data on Wednesday, November 4th. The real estate investment trust reported ($0.68) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.29) by ($0.39). Service Properties Trust had a negative net margin of 29.31% and a negative return on equity of 69.76%. The firm had revenue of $399.52 million for the quarter, compared to analyst estimates of $318.62 million. As a group, sell-side analysts anticipate that Service Properties Trust will post 1.15 EPS for the current year.

Service Properties Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, November 12th. Stockholders of record on Monday, October 19th will be issued a $0.05 dividend. The ex-dividend date of this dividend is Monday, October 19th. This represents a $0.20 annualized dividend and a dividend yield of 3.8%. Service Properties Trust's payout ratio is -2.87%.

Analyst Upgrades and Downgrades

SVC has been the topic of several recent research reports. Wall Street Zen upgraded Service Properties Trust from a "sell" rating to a "hold" rating in a research report on Saturday. Loop Capital set a $9.00 price objective on Service Properties Trust in a report on Friday, October 2nd. Zacks Research raised Service Properties Trust from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings lowered Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, October 8th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Service Properties Trust currently has a consensus rating of "Hold" and a consensus target price of $12.05.

Service Properties Trust Company Profile

Service Properties Trust NASDAQ: SVC is a real estate investment trust that owns and invests in hospitality and service-oriented properties. The company's portfolio has historically included hotels, extended-stay lodging properties and other real estate leased to businesses that provide essential or consumer-focused services.

Service Properties Trust generally leases its properties to hotel operators and other commercial tenants rather than managing most locations directly. Its hotel portfolio has included properties operated under a variety of well-known brands, while its service-focused properties have supported businesses such as healthcare, automotive and travel-related services.

The company's properties are primarily located in the United States, with investments also having included select locations in Canada and Puerto Rico.

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