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

Service Properties Trust (NASDAQ:SVC - Get Free Report) announced a quarterly dividend on Sunday, July 13th, RTT News reports. Shareholders 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 yield of 1.42%. The ex-dividend date of this dividend is Monday, July 21st.

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. Equities 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 1.1%

SVC traded up $0.03 during mid-day trading on Friday, hitting $2.82. The stock had a trading volume of 1,935,712 shares, compared to its average volume of 2,146,137. The stock's fifty day simple moving average is $2.35 and its 200-day simple moving average is $2.44. 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 firm has a market capitalization of $469.92 million, a price-to-earnings ratio of -1.49 and a beta of 1.86. Service Properties Trust has a 1-year low of $1.71 and a 1-year high of $6.34.

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

Wall Street Analyst Weigh In

SVC has been the subject of several research reports. Wells Fargo & Company raised shares of Service Properties Trust from an "underweight" rating to an "overweight" rating and increased their price objective for the stock from $2.50 to $4.00 in a research report on Wednesday, March 19th. B. Riley initiated coverage on shares of Service Properties Trust in a research report on Tuesday, April 22nd. They set a "neutral" rating and a $2.00 price objective for the company.

Institutional Investors Weigh In On Service Properties Trust

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Strs Ohio acquired a new stake in Service Properties Trust in the 1st quarter valued at $77,000. AQR Capital Management LLC grew its position in shares of Service Properties Trust by 30.8% in the 1st quarter. AQR Capital Management LLC now owns 1,346,098 shares of the real estate investment trust's stock valued at $3,446,000 after acquiring an additional 317,218 shares during the period. Finally, Goldman Sachs Group Inc. grew its position in shares of Service Properties Trust by 114.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,118,530 shares of the real estate investment trust's stock valued at $10,749,000 after acquiring an additional 2,200,754 shares during the period. 77.62% of the stock is currently owned by institutional investors and hedge funds.

About Service Properties Trust

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.