Service Properties Trust (NASDAQ:SVC) Releases Earnings Results, Misses Estimates By $0.55 EPS

Key Points

• Quarterly results: Service Properties Trust reported EPS of ($0.91), missing consensus by $0.55 while revenue of $364.45M beat estimates, and the company updated FY2026 EPS guidance to 0.240–0.270.
• Insider buying: CEO Christopher J. Bilotto purchased 100,000 shares and CFO Brian E. Donley bought 55,000 shares at about $1.20 on April 2, and insiders have bought roughly 41.9M shares in the past 90 days.
• Dividend and financials: The company announced a $0.01 quarterly dividend (annualized $0.04, ~2.5% yield) but shows heavy leverage (debt-to-equity 5.0) and negative profitability (net margin -11.15%, ROE -29.7%) with a market cap of ~$265.5M.

Service Properties Trust (NASDAQ:SVC - Get Free Report) announced its quarterly earnings results on Wednesday. The real estate investment trust reported ($0.91) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.36) by ($0.55), FiscalAI reports. The business 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 11.15% and a negative return on equity of 29.70%. Service Properties Trust updated its FY 2026 guidance to 0.240-0.270 EPS.

Service Properties Trust Stock Performance

Service Properties Trust stock traded up $0.04 during mid-day trading on Wednesday, reaching $1.58. 6,046,784 shares of the stock traded hands, compared to its average volume of 6,569,718. The stock has a market capitalization of $265.52 million, a PE ratio of -1.31 and a beta of 1.61. The company has a debt-to-equity ratio of 5.00, a current ratio of 0.14 and a quick ratio of 0.14. Service Properties Trust has a 12-month low of $1.13 and a 12-month high of $3.08. The business's 50-day moving average is $1.75 and its 200-day moving average is $1.90.

Service Properties Trust Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, May 14th. Investors of record on Tuesday, April 21st will be given a dividend of $0.01 per share. This represents a $0.04 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date is Tuesday, April 21st. Service Properties Trust's dividend payout ratio is -3.31%.

Insiders Place Their Bets

In other Service Properties Trust news, CEO Christopher J. Bilotto purchased 100,000 shares of the company's stock in a transaction dated Thursday, April 2nd. The shares were acquired at an average price of $1.20 per share, for a total transaction of $120,000.00. The acquisition was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Brian E. Donley acquired 55,000 shares of the business's stock in a transaction dated Thursday, April 2nd. The shares were acquired at an average cost of $1.20 per share, with a total value of $66,000.00. Additional details regarding this purchase are available in the official SEC disclosure. In the last ninety days, insiders purchased 41,914,999 shares of company stock valued at $50,297,999. 1.57% of the stock is currently owned by corporate insiders.

Institutional Trading of Service Properties Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Charles Schwab Investment Management Inc. increased its position in Service Properties Trust by 1.6% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 8,693,982 shares of the real estate investment trust's stock worth $15,997,000 after buying an additional 136,283 shares in the last quarter. Goldman Sachs Group Inc. grew its position in shares of Service Properties Trust by 8.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,810,031 shares of the real estate investment trust's stock worth $12,530,000 after purchasing an additional 553,942 shares in the last quarter. Susquehanna Advisors Group Inc. grew its position in shares of Service Properties Trust by 17.4% during the fourth quarter. Susquehanna Advisors Group Inc. now owns 6,014,299 shares of the real estate investment trust's stock worth $11,066,000 after purchasing an additional 892,880 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Service Properties Trust by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 4,221,659 shares of the real estate investment trust's stock worth $7,769,000 after purchasing an additional 26,994 shares in the last quarter. Finally, Silver Point Capital L.P. grew its position in shares of 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 worth $6,328,000 after purchasing an additional 1,660,000 shares in the last quarter. Hedge funds and other institutional investors own 77.62% of the company's stock.

Analyst Ratings Changes

SVC has been the topic of a number of research analyst reports. Wells Fargo & Company lowered their price target on Service Properties Trust from $2.50 to $2.00 and set an "equal weight" rating on the stock in a report on Thursday, January 22nd. B. Riley Financial raised Service Properties Trust from a "neutral" rating to a "buy" rating and set a $2.00 price target on the stock in a report on Thursday, April 2nd. Wall Street Zen raised Service Properties Trust from a "sell" rating to a "hold" rating in a report on Saturday, March 28th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Service Properties Trust in a report on Tuesday, April 21st. Finally, Zacks Research downgraded Service Properties Trust from a "strong-buy" rating to a "hold" rating in a report on Friday, January 30th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Service Properties Trust presently has a consensus rating of "Hold" and a consensus target price of $2.00.

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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