Service Properties Trust (NASDAQ:SVC) Given Consensus Rating of "Hold" by Analysts

Key Points

• Service Properties Trust has a consensus analyst rating of "Hold", based on five covering analysts. The average 12-month price target is $2.50, with recent opinions mixed between buy, hold, and sell calls.
• The REIT beat earnings expectations in its latest quarter, reporting $0.04 EPS versus an expected loss, and revenue of $364.45 million versus estimates of $347.82 million. It also guided FY 2026 EPS at 0.240–0.270.
• Despite some positive operational results, SVC remains financially strained, with a current ratio of 0.01, quick ratio of 0.01, and debt-to-equity of 4.56. The stock also trades near the low end of its range, while insiders have recently made large stock purchases.

Shares of Service Properties Trust (NASDAQ:SVC - Get Free Report) have earned an average rating of "Hold" from the five analysts that are currently covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, two have given a hold recommendation and two have given a buy recommendation to the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $2.50.

SVC has been the subject of several recent analyst reports. B. Riley Financial upgraded shares of Service Properties Trust from a "neutral" rating to a "buy" rating and set a $2.00 target price for the company in a report on Thursday, April 2nd. Wall Street Zen cut shares of Service Properties Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Odeon Capital Group initiated coverage on shares of Service Properties Trust in a report on Friday, May 8th. They issued a "buy" rating and a $3.50 target price for the company. Finally, Weiss Ratings cut shares of Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, May 26th.

Service Properties Trust Stock Performance

NASDAQ:SVC opened at $1.75 on Tuesday. Service Properties Trust has a twelve month low of $1.13 and a twelve month high of $3.08. The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 4.56. The company has a 50-day moving average of $1.56 and a 200-day moving average of $1.84. The firm has a market cap of $1.13 billion, a price-to-earnings ratio of -1.23 and a beta of 1.61.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The real estate investment trust reported $0.04 earnings per share for the quarter, beating the consensus estimate of ($0.36) by $0.40. Service Properties Trust had a negative net margin of 13.59% and a negative return on equity of 38.18%. The company had revenue of $364.45 million during the quarter, compared to analyst estimates of $347.82 million. Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. Analysts forecast that Service Properties Trust will post 0.25 earnings per share for the current fiscal year.

Service Properties Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Tuesday, April 21st were issued a dividend of $0.01 per share. This represents a $0.04 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Tuesday, April 21st. Service Properties Trust's dividend payout ratio (DPR) is currently -2.82%.

Insider Activity at Service Properties Trust

In related news, CFO Brian E. Donley purchased 55,000 shares of the firm's stock in a transaction that occurred 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 purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Adam D. Portnoy purchased 41,666,666 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were bought 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. In the last three months, insiders have acquired 41,914,999 shares of company stock valued at $50,297,999. 1.57% of the stock is owned by company insiders.

Institutional Trading of Service Properties Trust

Institutional investors have recently made changes to their positions in the stock. UBS Group AG raised its position in Service Properties Trust by 266.8% during the fourth quarter. UBS Group AG now owns 1,308,186 shares of the real estate investment trust's stock valued at $2,407,000 after acquiring an additional 951,523 shares in the last quarter. Pictet Asset Management Holding SA bought a new position in Service Properties Trust during the fourth quarter valued at approximately $1,771,000. Allianz Asset Management GmbH raised its position in Service Properties Trust by 16.5% during the third quarter. Allianz Asset Management GmbH now owns 2,965,472 shares of the real estate investment trust's stock valued at $8,036,000 after acquiring an additional 420,785 shares in the last quarter. Silver Point Capital L.P. raised its position in Service Properties Trust by 93.3% during the fourth quarter. Silver Point Capital L.P. now owns 3,439,000 shares of the real estate investment trust's stock valued at $6,328,000 after acquiring an additional 1,660,000 shares in the last quarter. Finally, Philosophy Capital Management LLC bought a new position in Service Properties Trust during the third quarter valued at approximately $3,838,000. 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 (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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