Service Properties Trust (NASDAQ:SVC) Downgraded to "Strong Sell" Rating by Zacks Research

Key Points

• Service Properties Trust has been downgraded from a "hold" to a "strong sell" rating by Zacks Research, indicating significant concerns about the company's financial health.
• B. Riley has issued a "neutral" rating with a target price of $2.00, while the consensus rating remains a "hold" with a target price of $3.00.
• The company's recent earnings report showed a small beat on expected EPS, but also highlighted a negative net margin of 14.73% and a negative return on equity of 34.61%.

Zacks Research lowered shares of Service Properties Trust (NASDAQ:SVC - Free Report) from a hold rating to a strong sell rating in a research note released on Tuesday morning,Zacks.com reports.

Separately, B. Riley started coverage on Service Properties Trust in a research note on Tuesday, April 22nd. They issued a "neutral" rating and a $2.00 price target on the stock. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Service Properties Trust presently has an average rating of "Hold" and a consensus price target of $3.00.

Service Properties Trust Price Performance

Shares of SVC traded up $0.19 during midday trading on Tuesday, hitting $2.80. The company's stock had a trading volume of 1,600,797 shares, compared to its average volume of 1,512,487. Service Properties Trust has a one year low of $1.71 and a one year high of $5.00. The company's fifty day simple moving average is $2.61 and its two-hundred day simple moving average is $2.44. The company has a quick ratio of 0.04, a current ratio of 0.04 and a debt-to-equity ratio of 5.79. The stock has a market capitalization of $467.21 million, a price-to-earnings ratio of -1.68 and a beta of 1.91.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last issued its quarterly earnings results on Tuesday, August 5th. The real estate investment trust reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.34 by $0.01. Service Properties Trust had a negative return on equity of 34.61% and a negative net margin of 14.73%.The company had revenue of $503.44 million for the quarter, compared to analyst estimates of $497.53 million.

Service Properties Trust Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Thursday, August 14th. Shareholders of record on Monday, July 21st were issued a dividend of $0.01 per share. The ex-dividend date of this dividend was Monday, July 21st. This represents a $0.04 annualized dividend and a yield of 1.4%. Service Properties Trust's payout ratio is presently -2.40%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. lifted its holdings in Service Properties Trust by 7.6% during the 1st quarter. Charles Schwab Investment Management Inc. now owns 8,127,210 shares of the real estate investment trust's stock worth $21,212,000 after buying an additional 572,954 shares during the period. Nantahala Capital Management LLC acquired a new position in Service Properties Trust during the 4th quarter worth about $20,553,000. Capital Management Corp VA lifted its holdings in Service Properties Trust by 27.5% during the 2nd quarter. Capital Management Corp VA now owns 7,225,765 shares of the real estate investment trust's stock worth $17,270,000 after buying an additional 1,559,600 shares during the period. Goldman Sachs Group Inc. lifted its holdings in Service Properties Trust by 114.8% during 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. Finally, Balyasny Asset Management L.P. acquired a new position in Service Properties Trust during the 4th quarter worth about $6,900,000. 77.62% of the stock is owned by institutional investors and hedge funds.

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.