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: one sell, two hold, and two buy ratings. The average 12-month price target is $2.67.
• The company reported better-than-expected first-quarter results, with EPS of $0.04 versus an expected loss and revenue of $364.45 million topping estimates. Management also guided FY 2026 EPS to 0.240–0.270.
• SVC recently announced a 1-for-5 reverse stock split effective July 7, and insider buying has been notable, including large purchases by Director Adam D. Portnoy and CEO Christopher J. Bilotto. The stock also paid a quarterly dividend of $0.01 per share, implying a 2.3% annualized yield.

Service Properties Trust (NASDAQ:SVC - Get Free Report) has received a consensus recommendation of "Hold" from the five analysts that are presently covering the firm, MarketBeat.com reports. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have assigned a buy rating to the company. The average twelve-month price target among analysts that have updated their coverage on the stock in the last year is $2.6667.

Several equities research analysts have weighed in on SVC shares. B. Riley Financial raised their price target on Service Properties Trust from $2.00 to $2.50 and gave the stock a "buy" rating in a report on Wednesday, June 17th. Weiss Ratings downgraded Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, May 26th. Wall Street Zen downgraded Service Properties Trust from a "hold" rating to a "sell" rating in a report on Saturday, May 9th. Finally, Odeon Capital Group started coverage on Service Properties Trust in a research note on Friday, May 8th. They issued a "buy" rating and a $3.50 price objective for the company.

Service Properties Trust Price Performance

Shares of SVC stock opened at $1.71 on Friday. Service Properties Trust has a 1-year low of $1.13 and a 1-year high of $3.08. The stock's 50-day moving average is $1.63 and its 200 day moving average is $1.83. The company has a market cap of $1.11 billion, a P/E ratio of -1.20 and a beta of 1.65. The company has a debt-to-equity ratio of 4.56, a current ratio of 0.01 and a quick ratio of 0.01.

Service Properties Trust shares are going to reverse split on the morning of Tuesday, July 7th. The 1-5 reverse split was recently announced. The number of shares owned by shareholders will be adjusted after the closing bell on Monday, July 6th.

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

Service Properties Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, May 14th. Stockholders of record on Tuesday, April 21st were paid a $0.01 dividend. 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 presently -2.82%.

Insider Transactions at Service Properties Trust

In other news, Director Adam D. Portnoy acquired 41,666,666 shares of Service Properties Trust stock in a transaction dated Thursday, April 2nd. The stock was purchased at an average cost of $1.20 per share, for a total transaction of $49,999,999.20. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Christopher J. Bilotto acquired 100,000 shares of Service Properties Trust stock in a transaction dated Thursday, April 2nd. The stock was purchased at an average price of $1.20 per share, with a total value of $120,000.00. The SEC filing for this purchase provides additional information. In the last ninety days, insiders have bought 41,914,999 shares of company stock valued at $50,297,999. 1.57% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Caxton Associates LLP purchased a new position in Service Properties Trust during the third quarter valued at approximately $33,000. BNP Paribas Financial Markets raised its position in Service Properties Trust by 54.4% during the second 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 in the last quarter. HighRoad Wealth Advisors LLC purchased a new position in Service Properties Trust during the fourth quarter valued at approximately $29,000. CIBC Bancorp USA Inc. purchased a new position in Service Properties Trust during the third quarter valued at approximately $45,000. Finally, Abel Hall LLC purchased a new position in Service Properties Trust during the fourth quarter valued at approximately $32,000. 77.62% of the stock is currently owned by hedge funds and other 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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