Service Properties Trust (NASDAQ:SVC) Stock Price Breaks Below 50 Day Moving Average - Should You Sell?

Key Points

• Service Properties Trust shares fell below their 50-day moving average, trading as low as $6.06 and last changing hands at $6.22, below the $6.93 average.
• Analyst sentiment is mixed: the stock has an overall “Hold” consensus, with a $12.05 average price target versus its recent trading price. Ratings range from Buy to Sell.
• The company declared a quarterly dividend of $0.05 per share, or $0.20 annually, implying a 3.2% yield; institutional investors own approximately 77.6% of the stock.

Service Properties Trust (NASDAQ:SVC - Get Free Report)'s stock price crossed below its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $6.93 and traded as low as $6.06. Service Properties Trust shares last traded at $6.22, with a volume of 1,437,690 shares traded.

Analysts Set New Price Targets

SVC has been the topic of several research reports. LADENBURG THALM/SH SH started coverage on Service Properties Trust in a research note on Tuesday, June 30th. They issued a "buy" rating and a $11.25 target price on the stock. Weiss Ratings downgraded Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Thursday, October 8th. Loop Capital set a $9.00 price objective on Service Properties Trust in a report on Friday, October 2nd. Finally, Zacks Research raised Service Properties Trust from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, Service Properties Trust has an average rating of "Hold" and a consensus target price of $12.05.

Service Properties Trust Trading Up 2.0%

The firm has a 50-day simple moving average of $6.93 and a 200-day simple moving average of $7.70. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 2.11. The stock has a market cap of $805.55 million, a PE ratio of -0.81 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. Investors of record on Monday, October 19th will be paid a dividend of $0.05 per share. This represents a $0.20 dividend on an annualized basis and a dividend yield of 3.2%. The ex-dividend date is Monday, October 19th. Service Properties Trust's payout ratio is presently -2.60%.

Institutional Trading of Service Properties Trust

Institutional investors have recently added to or reduced their stakes in the stock. Abel Hall LLC boosted its stake in 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 worth $40,000 after purchasing an additional 12,033 shares during the period. Farringdon Capital Ltd. bought a new stake in shares of Service Properties Trust during the second quarter valued at about $37,000. Sei Investments Co. increased its position in shares of Service Properties Trust by 17.6% during the first quarter. Sei Investments Co. now owns 148,593 shares of the real estate investment trust's stock valued at $201,000 after buying an additional 22,267 shares during the period. WINTON GROUP Ltd increased its position in shares of Service Properties Trust by 94.8% during the second quarter. WINTON GROUP Ltd now owns 67,000 shares of the real estate investment trust's stock valued at $113,000 after buying an additional 32,600 shares during the period. Finally, AdvisorShares Investments LLC purchased a new stake in shares of Service Properties Trust in the first quarter worth about $44,000. Hedge funds and other institutional investors own 77.62% of the company's stock.

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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