Service Properties Trust (NASDAQ:SVC) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Service Properties Trust reported $0.35 earnings per share for the quarter, exceeding analysts' expectations of $0.34.
• The company recently declared a quarterly dividend of $0.01, with a dividend yield of 1.4%.
• Institutional investors own 77.62% of the company's stock, with significant increases in holdings from firms like Goldman Sachs and AQR Capital Management.

Service Properties Trust (NASDAQ:SVC - Get Free Report) announced its quarterly earnings data on Tuesday. The real estate investment trust reported $0.35 earnings per share for the quarter, topping analysts' consensus estimates of $0.34 by $0.01, Zacks reports. The firm had revenue of $503.44 million during the quarter, compared to analyst estimates of $497.53 million. Service Properties Trust had a negative net margin of 14.73% and a negative return on equity of 34.61%.

Service Properties Trust Trading Down 7.7%

Service Properties Trust stock traded down $0.19 during mid-day trading on Friday, reaching $2.28. 1,759,612 shares of the company traded hands, compared to its average volume of 1,928,259. The company has a debt-to-equity ratio of 5.79, a current ratio of 0.04 and a quick ratio of 0.04. The firm's 50 day moving average price is $2.57 and its 200 day moving average price is $2.46. The firm has a market capitalization of $380.44 million, a price-to-earnings ratio of -1.37 and a beta of 1.91. Service Properties Trust has a 52-week low of $1.71 and a 52-week high of $5.00.

Service Properties Trust Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, August 14th. Investors of record on Monday, July 21st will be paid a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Monday, July 21st. Service Properties Trust's payout ratio is presently -2.40%.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SVC. Strs Ohio purchased a new stake in shares of Service Properties Trust in the 1st quarter worth about $77,000. Cetera Investment Advisers grew its position in shares of Service Properties Trust by 54.5% in the 2nd quarter. Cetera Investment Advisers now owns 104,585 shares of the real estate investment trust's stock worth $250,000 after buying an additional 36,873 shares during the period. 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 worth $3,446,000 after buying 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 worth $10,749,000 after buying an additional 2,200,754 shares during the period. 77.62% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, B. Riley initiated coverage on shares of Service Properties Trust in a research note on Tuesday, April 22nd. They issued a "neutral" rating and a $2.00 target price 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.