Service Properties Trust (NASDAQ:SVC) Hits New 52-Week Low - Should You Sell?

Key Points

• Service Properties Trust hit a new 52-week low, falling to $5.59 and trading around $5.64, down from the prior close of $6.28.
• Analyst opinions are mixed, but the consensus rating is Hold with a $12.05 price target; three analysts rate the stock Buy, two Hold, and one Sell.
• The REIT reported quarterly earnings of $0.34 per share, beating estimates of a $0.29 loss, and announced a $0.05 quarterly dividend, equal to a 3.6% annualized yield.

Service Properties Trust (NASDAQ:SVC - Get Free Report) shares hit a new 52-week low on Thursday. The company traded as low as $5.59 and last traded at $5.6350, with a volume of 939,765 shares changing hands. The stock had previously closed at $6.28.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on SVC. Zacks Research upgraded shares of Service Properties Trust from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. Weiss Ratings downgraded shares of Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Thursday, October 8th. Finally, Loop Capital set a $9.00 price objective on shares of Service Properties Trust in a research note on Friday, October 2nd. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $12.05.

Service Properties Trust Stock Down 12.3%

The business has a 50 day simple moving average of $6.62 and a 200 day simple moving average of $8.30. The company has a debt-to-equity ratio of 2.11, a current ratio of 0.01 and a quick ratio of 0.01. The stock has a market cap of $713.47 million, a PE ratio of -0.71 and a beta of 1.78.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last posted its quarterly earnings results on Wednesday, November 4th. The real estate investment trust reported $0.34 earnings per share for the quarter, topping analysts' consensus estimates of ($0.29) by $0.63. The company had revenue of $399.52 million during the quarter, compared to the consensus estimate of $318.62 million. Service Properties Trust had a negative return on equity of 65.18% and a negative net margin of 25.44%. On average, equities research analysts forecast that Service Properties Trust will post 1.31 EPS for the current fiscal year.

Service Properties Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, November 12th. Investors of record on Monday, October 19th will be given a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Monday, October 19th. Service Properties Trust's dividend payout ratio (DPR) is presently -2.60%.

Institutional Trading of Service Properties Trust

Institutional investors have recently added to or reduced their stakes in the business. Vise Technologies Inc. bought a new position in shares of Service Properties Trust in the 3rd quarter valued at approximately $74,000. Farringdon Capital Ltd. acquired a new position in Service Properties Trust during the second quarter valued at approximately $37,000. Abel Hall LLC grew its holdings in Service Properties Trust by 69.3% during the first 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 last quarter. Sequoia Financial Advisors LLC acquired a new position in Service Properties Trust during the second quarter valued at approximately $66,000. Finally, Squarepoint Ops LLC bought a new position in shares of Service Properties Trust in the second quarter valued at approximately $71,000. 77.62% of the stock is currently owned by institutional investors and hedge funds.

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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