Odeon Capital Group Initiates Coverage on Service Properties Trust (NASDAQ:SVC)

Key Points

• Odeon Capital Group initiated coverage with a Buy rating and a $3.50 price target on Service Properties Trust, implying about a 120.8% upside from the stock's current ~$1.59 level.
• Company insiders made large purchases on April 2—totaling roughly $50.3 million (about 41.9 million shares), including a 41.7 million–share buy by Adam D. Portnoy—while insiders now hold 1.57% of the company.
• Service Properties reported a Q1 beat (EPS $0.04 vs. -$0.36 est.; revenue $364.45M vs. $347.82M) and gave FY2026 EPS guidance of 0.240–0.270, but the REIT shows high leverage (debt-to-equity 5.0) and negative ROE/net margin, with a market cap of ~$266M.

Investment analysts at Odeon Capital Group assumed coverage on shares of Service Properties Trust (NASDAQ:SVC - Get Free Report) in a report released on Friday. The firm set a "buy" rating and a $3.50 price target on the real estate investment trust's stock. Odeon Capital Group's price target indicates a potential upside of 120.82% from the company's current price.

Other equities research analysts also recently issued research reports about the company. Zacks Research downgraded Service Properties Trust from a "strong-buy" rating to a "hold" rating in a research report on Friday, January 30th. Weiss Ratings restated a "sell (d-)" rating on shares of Service Properties Trust in a research note on Tuesday, April 21st. B. Riley Financial upgraded Service Properties Trust from a "neutral" rating to a "buy" rating and set a $2.00 price objective on the stock in a research note on Thursday, April 2nd. Wells Fargo & Company reduced their price objective on Service Properties Trust from $2.50 to $2.00 and set an "equal weight" rating on the stock in a research note on Thursday, January 22nd. Finally, Wall Street Zen upgraded Service Properties Trust from a "sell" rating to a "hold" rating in a research note on Saturday, March 28th. Two equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $2.50.

Service Properties Trust Trading Up 2.9%

NASDAQ SVC traded up $0.05 during mid-day trading on Friday, reaching $1.59. 3,295,948 shares of the stock were exchanged, compared to its average volume of 6,523,389. Service Properties Trust has a 1-year low of $1.13 and a 1-year high of $3.08. The business's fifty day simple moving average is $1.73 and its 200 day simple moving average is $1.89. The stock has a market capitalization of $266.37 million, a PE ratio of -1.12 and a beta of 1.61. The company has a debt-to-equity ratio of 5.00, a quick ratio of 0.14 and a current ratio of 0.14.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The real estate investment trust reported $0.04 EPS for the quarter, beating analysts' consensus estimates of ($0.36) by $0.40. The business had revenue of $364.45 million during the quarter, compared to the consensus estimate of $347.82 million. Service Properties Trust had a negative return on equity of 35.74% and a negative net margin of 13.59%.Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. On average, research analysts anticipate that Service Properties Trust will post 0.49 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Donna D. Fraiche purchased 83,333 shares of the firm's stock in a transaction on Thursday, April 2nd. The stock was purchased at an average cost of $1.20 per share, with a total value of $99,999.60. Following the purchase, the director owned 182,013 shares in the company, valued at $218,415.60. This trade represents a 84.45% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Adam D. Portnoy acquired 41,666,666 shares of Service Properties Trust stock in a transaction dated Thursday, April 2nd. The shares were bought at an average cost of $1.20 per share, with a total value of $49,999,999.20. The disclosure for this purchase is available in the SEC filing. Over the last three months, insiders purchased 41,914,999 shares of company stock worth $50,297,999. 1.57% of the stock is owned by company insiders.

Institutional Trading of Service Properties Trust

Several hedge funds and other institutional investors have recently modified their holdings of SVC. HighRoad Wealth Advisors LLC purchased a new stake in shares of Service Properties Trust during the fourth quarter worth $29,000. Abel Hall LLC purchased a new stake in shares of Service Properties Trust during the fourth quarter worth $32,000. Caxton Associates LLP purchased a new stake in shares of Service Properties Trust during the third quarter worth $33,000. BNP Paribas Financial Markets raised its holdings in shares of Service Properties Trust by 54.4% during the second quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust's stock worth $35,000 after acquiring an additional 5,099 shares in the last quarter. Finally, Savant Capital LLC purchased a new stake in shares of Service Properties Trust during the third quarter worth $37,000. 77.62% of the stock is currently owned by hedge funds and other institutional investors.

About Service Properties Trust

Service Properties Trust NASDAQ: SVC is a real estate investment trust (REIT) specializing in the acquisition, ownership and leasing of service-oriented properties, with a primary focus on the lodging sector. The company structures long-term, triple-net leases with established hotel operators under franchise agreements with leading global brands. By partnering with recognized hotel companies, Service Properties Trust seeks to generate a stable income stream through rent payments, while offering operators the capital and balance-sheet flexibility to grow their portfolios.

Since its formation in 2010, Service Properties Trust has grown its portfolio through strategic sale-leaseback transactions, targeted property acquisitions and selective dispositions.

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