Service Properties Trust (NASDAQ:SVC) Shares Climb 5.5% - What's Next?

Key Points

• Service Properties Trust shares rose 5.5% in Tuesday mid-day trading, reaching $5.4350; trading volume was 38% below its daily average.
• Analyst views are mixed, but the consensus rating is Hold with a $11.60 target price. Recent rating changes included upgrades to Hold and a cut in one analyst’s price target to $9.
• The REIT reported a quarterly loss of $0.68 per share, missing the $0.29-per-share loss analysts expected, despite revenue of $399.52 million versus $318.62 million expected. It also announced a $0.05 quarterly dividend, equivalent to a 3.7% yield.

Service Properties Trust (NASDAQ:SVC - Get Free Report)'s stock price traded up 5.5% during mid-day trading on Tuesday. The stock traded as high as $5.42 and last traded at $5.4350. Approximately 1,024,784 shares were traded during mid-day trading, a decline of 38% from the average daily volume of 1,649,065 shares. The stock had previously closed at $5.15.

Analyst Upgrades and Downgrades

SVC has been the subject of several analyst reports. Wall Street Zen upgraded Service Properties Trust from a "sell" rating to a "hold" rating in a report on Saturday. LADENBURG THALM/SH SH decreased their price target on shares of Service Properties Trust from $11.25 to $9.00 and set a "buy" rating for the company in a research note on Friday. Loop Capital set a $9.00 price objective on shares of Service Properties Trust in a research note on Friday, October 2nd. 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, Zacks Research raised Service Properties Trust from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 12th. Three analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Service Properties Trust currently has a consensus rating of "Hold" and a consensus target price of $11.60.

Service Properties Trust Price Performance

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 $701.56 million, a PE ratio of -0.78 and a beta of 1.78. The stock has a 50 day simple moving average of $6.48 and a 200-day simple moving average of $8.22.

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 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 71.48%. The firm had revenue of $399.52 million for the quarter, compared to analysts' expectations of $318.62 million. Equities analysts anticipate that Service Properties Trust will post 1.15 earnings per share for the current fiscal year.

Service Properties Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 12th. Stockholders of record on Monday, October 19th will be given a dividend of $0.05 per share. The ex-dividend date of this dividend is Monday, October 19th. This represents a $0.20 annualized dividend and a dividend yield of 3.7%. Service Properties Trust's payout ratio is currently -2.87%.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of the business. DBA Trading LLC purchased a new position in Service Properties Trust in the 3rd quarter worth about $642,000. Vise Technologies Inc. purchased a new stake in shares of Service Properties Trust during the 3rd quarter worth $74,000. Sequoia Financial Advisors LLC bought a new stake in shares of Service Properties Trust in the 2nd quarter valued at about $66,000. WINTON GROUP Ltd lifted its holdings in shares of Service Properties Trust by 94.8% during the 2nd quarter. WINTON GROUP Ltd now owns 67,000 shares of the real estate investment trust's stock valued at $113,000 after purchasing an additional 32,600 shares during the last quarter. Finally, Squarepoint Ops LLC acquired a new stake in Service Properties Trust in the second quarter worth about $71,000. Hedge funds and other institutional investors own 77.62% of the company's stock.

About Service Properties Trust

Service Properties Trust NASDAQ: SVC is a real estate investment trust that owns hotels and service-focused retail properties. Its hotel portfolio includes lodging properties operated by third-party management companies and affiliated with a range of hotel brands. Its retail properties are generally leased to businesses that provide services to travelers and local customers. The trust's properties are located primarily in the United States. Service Properties Trust was formerly known as Hospitality Properties Trust, reflecting its earlier focus on hotels, before adopting its current name as its portfolio expanded to include service-focused retail real estate.

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