Service Properties Trust (NASDAQ:SVC) Stock Price Up 21.2% After Dividend Announcement

Key Points

• Service Properties Trust shares rose 21.2% after the company announced a quarterly dividend of $0.05 per share, equivalent to $0.20 annually and a 2.7% yield.
• Analyst sentiment remains mixed, with three Buy, two Hold, and one Sell rating; the consensus price target is $12.05, above the stock’s trading level.
• Institutional investors and hedge funds own 77.62% of the stock, while the company carries high leverage with a debt-to-equity ratio of 2.11 and very low liquidity ratios.

Service Properties Trust (NASDAQ:SVC - Get Free Report)'s stock price rose 21.2% during trading on Friday after the company announced a dividend. The company traded as high as $6.59 and last traded at $7.5390. Approximately 2,084,344 shares were traded during mid-day trading, an increase of 36% from the average session volume of 1,534,376 shares. The stock had previously closed at $6.22.The newly announced 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 annualized dividend and a yield of 2.7%. The ex-dividend date is Monday, October 19th. Service Properties Trust's dividend payout ratio is presently -2.60%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. Loop Capital set a $9.00 price objective on shares of Service Properties Trust in a report on Friday, October 2nd. Weiss Ratings upgraded Service Properties Trust from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday, July 29th. LADENBURG THALM/SH SH started coverage on Service Properties Trust in a report on Tuesday, June 30th. They issued a "buy" rating and a $11.25 price target for the company. B. Riley Financial lifted their price objective on Service Properties Trust from $10.00 to $12.50 and gave the stock a "buy" rating in a report on Wednesday, June 17th. Finally, Zacks Research upgraded 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 assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $12.05.

Service Properties Trust Stock Performance

The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.01 and a current ratio of 0.01. The firm has a 50 day moving average price of $7.33 and a two-hundred day moving average price of $7.83. The company has a market capitalization of $976.37 million, a P/E ratio of -0.99 and a beta of 1.72.

Institutional Trading of Service Properties Trust

A number of hedge funds and other institutional investors have recently made changes to their positions in SVC. Farringdon Capital Ltd. acquired a new position in Service Properties Trust during the 2nd quarter worth about $37,000. Abel Hall LLC increased its position 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 valued at $40,000 after acquiring an additional 12,033 shares in the last quarter. AdvisorShares Investments LLC bought a new position in shares of Service Properties Trust in the first quarter worth about $44,000. Sequoia Financial Advisors LLC bought a new position in shares of Service Properties Trust in the second quarter worth about $66,000. Finally, Squarepoint Ops LLC acquired a new position in shares of Service Properties Trust during the second quarter worth 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 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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