Service Properties Trust Declares Quarterly Dividend of $0.01 (NASDAQ:SVC)

Service Properties Trust (NASDAQ:SVC - Get Free Report) announced a quarterly dividend on Thursday, July 10th, RTT News reports. Stockholders of record on Monday, July 21st will be given a dividend of 0.01 per share by the real estate investment trust on Thursday, August 14th. This represents a $0.04 annualized dividend and a dividend yield of 1.43%.

Service Properties Trust has a dividend payout ratio of -3.4% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Service Properties Trust to earn $1.14 per share next year, which means the company should continue to be able to cover its $0.04 annual dividend with an expected future payout ratio of 3.5%.

Service Properties Trust Trading Up 4.1%

Shares of NASDAQ SVC traded up $0.11 during mid-day trading on Thursday, hitting $2.79. The company's stock had a trading volume of 2,232,249 shares, compared to its average volume of 2,141,270. Service Properties Trust has a one year low of $1.71 and a one year high of $6.34. The company's fifty day simple moving average is $2.31 and its 200-day simple moving average is $2.43. The company has a debt-to-equity ratio of 5.48, a current ratio of 0.04 and a quick ratio of 0.04. The stock has a market cap of $464.93 million, a price-to-earnings ratio of 2.65 and a beta of 1.86.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings results on Tuesday, May 6th. The real estate investment trust reported $0.07 earnings per share for the quarter, beating analysts' consensus estimates of $0.05 by $0.02. The business had revenue of $435.18 million for the quarter, compared to the consensus estimate of $433.21 million. Service Properties Trust had a negative net margin of 16.54% and a negative return on equity of 35.59%.

Institutional Trading of Service Properties Trust

Several hedge funds and other institutional investors have recently modified their holdings of SVC. Goldman Sachs Group Inc. boosted its holdings in Service Properties Trust by 114.8% during the first quarter. Goldman Sachs Group Inc. now owns 4,118,530 shares of the real estate investment trust's stock worth $10,749,000 after purchasing an additional 2,200,754 shares during the last quarter. AQR Capital Management LLC lifted its position in Service Properties Trust by 30.8% during the 1st quarter. AQR Capital Management LLC now owns 1,346,098 shares of the real estate investment trust's stock worth $3,446,000 after buying an additional 317,218 shares in the last quarter. Finally, Strs Ohio acquired a new position in shares of Service Properties Trust during the 1st quarter worth about $77,000. Institutional investors and hedge funds own 77.62% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on SVC shares. Wells Fargo & Company upgraded Service Properties Trust from an "underweight" rating to an "overweight" rating and lifted their price objective for the company from $2.50 to $4.00 in a report on Wednesday, March 19th. B. Riley began coverage on shares of Service Properties Trust in a research note on Tuesday, April 22nd. They issued a "neutral" rating and a $2.00 price target on the stock.

Service Properties Trust Company Profile

Service Properties Trust Nasdaq: SVC is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.