Service Properties Trust (NASDAQ:SVC) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analysts: "Hold" — Five firms give an average rating of Hold (1 sell, 2 hold, 2 buy) with a 1-year consensus price target of $2.50, while recent broker notes range from Odeon’s $3.50 buy to Wells Fargo’s $2.00 equal-weight.
• Quarterly beat but weak fundamentals — SVC posted Q results of $0.04 EPS (vs. -$0.36 est.) and $364.45M revenue (vs. $347.82M est.) and set FY2026 guidance of $0.240–0.270 EPS, yet still shows a negative net margin/ROE and a high debt-to-equity ratio of 5.00.
• Significant insider buying — Insiders purchased about 41.9 million shares at $1.20 (notably Director Adam Portnoy’s ~41.67M for ~$50M), totaling ~$50.3M in insider purchases; insiders now own 1.57% of the company.

Shares of Service Properties Trust (NASDAQ:SVC - Get Free Report) have received an average rating of "Hold" from the five research firms that are currently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have issued a hold recommendation and two have given a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $2.50.

Several brokerages have recently commented on SVC. Odeon Capital Group began coverage on shares of Service Properties Trust in a research report on Friday. They set a "buy" rating and a $3.50 price objective on the stock. Wells Fargo & Company decreased their price objective on shares of Service Properties Trust from $2.50 to $2.00 and set an "equal weight" rating on the stock in a research report on Thursday, January 22nd. Wall Street Zen upgraded shares of Service Properties Trust from a "sell" rating to a "hold" rating in a research report on Saturday, March 28th. Weiss Ratings restated a "sell (d-)" rating on shares of Service Properties Trust in a research report on Tuesday, April 21st. Finally, Zacks Research downgraded Service Properties Trust from a "strong-buy" rating to a "hold" rating in a research note on Friday, January 30th.

Service Properties Trust Price Performance

NASDAQ:SVC traded up $0.05 during trading hours on Friday, hitting $1.59. 3,295,948 shares of the stock traded hands, compared to its average volume of 6,523,389. The company has a market cap of $266.37 million, a price-to-earnings ratio of -1.12 and a beta of 1.61. Service Properties Trust has a 1 year low of $1.13 and a 1 year high of $3.08. The stock has a 50 day moving average price of $1.73 and a 200 day moving average price of $1.89. The company has a quick ratio of 0.14, a current ratio of 0.14 and a debt-to-equity ratio of 5.00.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The real estate investment trust reported $0.04 EPS for the quarter, beating the consensus estimate of ($0.36) by $0.40. The firm had revenue of $364.45 million for the quarter, compared to the consensus estimate of $347.82 million. Service Properties Trust had a negative net margin of 13.59% and a negative return on equity of 35.74%. Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. Sell-side analysts forecast that Service Properties Trust will post 0.49 EPS for the current fiscal year.

Service Properties Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Shareholders of record on Tuesday, April 21st will be paid a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 2.5%. The ex-dividend date is Tuesday, April 21st. Service Properties Trust's dividend payout ratio is presently -2.82%.

Insiders Place Their Bets

In other Service Properties Trust news, CFO Brian E. Donley purchased 55,000 shares of the company's stock in a transaction on Thursday, April 2nd. The stock was acquired at an average cost of $1.20 per share, for a total transaction of $66,000.00. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Adam D. Portnoy purchased 41,666,666 shares of the company's stock in a transaction on Thursday, April 2nd. The stock was acquired at an average price of $1.20 per share, with a total value of $49,999,999.20. Additional details regarding this purchase are available in the official SEC disclosure. Insiders purchased a total of 41,914,999 shares of company stock worth $50,297,999 over the last ninety days. 1.57% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SVC. HighRoad Wealth Advisors LLC bought a new position in Service Properties Trust in the 4th quarter worth approximately $29,000. Abel Hall LLC bought a new position in shares of Service Properties Trust during the 4th quarter valued at approximately $32,000. Caxton Associates LLP bought a new position in shares of Service Properties Trust during the 3rd quarter valued at approximately $33,000. BNP Paribas Financial Markets boosted its position in shares of Service Properties Trust by 54.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust's stock valued at $35,000 after acquiring an additional 5,099 shares during the last quarter. Finally, Savant Capital LLC bought a new position in shares of Service Properties Trust during the 3rd quarter valued at approximately $37,000. 77.62% of the stock is currently owned by institutional investors.

About Service Properties Trust

Service Properties Trust NASDAQ: SVC is a real estate investment trust (REIT) specializing in the acquisition, ownership and leasing of service-oriented properties, with a primary focus on the lodging sector. The company structures long-term, triple-net leases with established hotel operators under franchise agreements with leading global brands. By partnering with recognized hotel companies, Service Properties Trust seeks to generate a stable income stream through rent payments, while offering operators the capital and balance-sheet flexibility to grow their portfolios.

Since its formation in 2010, Service Properties Trust has grown its portfolio through strategic sale-leaseback transactions, targeted property acquisitions and selective dispositions.

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