Service Properties Trust (NASDAQ:SVC) Reaches New 1-Year Low - Here's Why

Key Points

• Service Properties Trust fell to a new 52-week low of $5.65, below its 50-day and 200-day moving averages of $7.27 and $7.79, respectively.
• Analyst sentiment is mixed: the stock has three Buy, two Hold and one Sell rating, resulting in an overall “Hold” consensus and a $12.05 average price target.
• The company declared a quarterly dividend of $0.05 per share, equal to $0.20 annually and a 3.4% yield; institutional investors own approximately 77.6% of the stock.

Service Properties Trust (NASDAQ:SVC - Get Free Report) reached a new 52-week low during trading on Tuesday. The stock traded as low as $5.65 and last traded at $5.8050, with a volume of 623,105 shares. The stock had previously closed at $5.93.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. LADENBURG THALM/SH SH initiated coverage on shares of Service Properties Trust in a report on Tuesday, June 30th. They issued a "buy" rating and a $11.25 price objective on the stock. Loop Capital set a $9.00 price objective on shares of Service Properties Trust in a research report on Friday, October 2nd. B. Riley Financial boosted their target price on shares of Service Properties Trust from $10.00 to $12.50 and gave the stock a "buy" rating in a research note on Wednesday, June 17th. Weiss Ratings lowered Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a report on Thursday. Finally, Zacks Research raised Service Properties Trust from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. Three investment 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. According to data from MarketBeat.com, Service Properties Trust presently has an average rating of "Hold" and a consensus price target of $12.05.

Service Properties Trust Stock Performance

The firm's fifty day moving average price is $7.27 and its 200-day moving average price is $7.79. The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 2.11. The firm has a market cap of $758.41 million, a price-to-earnings ratio of -0.76 and a beta of 1.72.

Service Properties Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 12th. Shareholders of record on Monday, October 19th will be paid a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 3.4%. The ex-dividend date is Monday, October 19th. Service Properties Trust's dividend payout ratio is currently -2.60%.

Institutional Trading of Service Properties Trust

Several institutional investors and hedge funds have recently made changes to their positions in the company. Farringdon Capital Ltd. acquired a new stake in shares of Service Properties Trust in the 2nd quarter valued at about $37,000. Abel Hall LLC increased its position 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 worth $40,000 after buying an additional 12,033 shares during the period. AdvisorShares Investments LLC purchased a new stake in Service Properties Trust in the first quarter valued at approximately $44,000. Sequoia Financial Advisors LLC purchased a new stake in Service Properties Trust in the second quarter valued at approximately $66,000. Finally, Squarepoint Ops LLC acquired a new stake in shares of Service Properties Trust in the second quarter valued at approximately $71,000. 77.62% of the stock is owned by hedge funds and other institutional investors.

Service Properties Trust Company Profile

Service Properties Trust NASDAQ: SVC is a real estate investment trust that owns and invests in hotels and service-oriented commercial properties. The company generally leases its properties to operating companies under long-term agreements, generating rental income from a diversified portfolio.

Service Properties Trust's hotel portfolio includes properties operated under well-known brands and independent names, while its service-focused properties serve businesses such as travel centers, healthcare providers and other essential-service operators.

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