Service Properties Trust (NASDAQ:SVC) Sees Large Growth in Short Interest

Key Points

• Service Properties Trust saw a significant increase in short interest, rising by 49.3% to 6,030,000 shares in July, leading to a short-interest ratio of 4.0 days.
• Major hedge funds have increased their stakes in Service Properties Trust, with Millennium Management LLC and Two Sigma Advisers LP raising their positions by 279.7% and 805.0% respectively in the last quarter.
• The company reported earnings of $0.35 per share for the last quarter, beating estimates, while it also declared a quarterly dividend of $0.01 per share with a yield of 1.6%.

Service Properties Trust (NASDAQ:SVC - Get Free Report) was the recipient of a large growth in short interest in the month of July. As of July 15th, there was short interest totaling 6,030,000 shares, agrowthof49.3% from the June 30th total of 4,040,000 shares. Based on an average daily volume of 1,510,000 shares, the short-interest ratio is currently 4.0 days. Approximately3.9% of the shares of the company are sold short. Approximately3.9% of the shares of the company are sold short. Based on an average daily volume of 1,510,000 shares, the short-interest ratio is currently 4.0 days.

Hedge Funds Weigh In On Service Properties Trust

Large investors have recently added to or reduced their stakes in the company. Wealth Enhancement Advisory Services LLC purchased a new position in Service Properties Trust during the first quarter valued at approximately $65,000. Bank of America Corp DE raised its position in shares of Service Properties Trust by 140.3% during the fourth quarter. Bank of America Corp DE now owns 440,652 shares of the real estate investment trust's stock valued at $1,119,000 after buying an additional 257,260 shares during the last quarter. Millennium Management LLC raised its position in shares of Service Properties Trust by 279.7% during the fourth quarter. Millennium Management LLC now owns 1,858,949 shares of the real estate investment trust's stock valued at $4,722,000 after buying an additional 1,369,306 shares during the last quarter. Two Sigma Advisers LP raised its position in shares of Service Properties Trust by 805.0% during the fourth quarter. Two Sigma Advisers LP now owns 400,900 shares of the real estate investment trust's stock valued at $1,018,000 after buying an additional 356,600 shares during the last quarter. Finally, Envestnet Asset Management Inc. raised its position in shares of Service Properties Trust by 56.9% during the first quarter. Envestnet Asset Management Inc. now owns 591,407 shares of the real estate investment trust's stock valued at $1,544,000 after buying an additional 214,508 shares during the last quarter. Hedge funds and other institutional investors own 77.62% of the company's stock.

Service Properties Trust Price Performance

Shares of NASDAQ:SVC opened at $2.47 on Thursday. The company has a debt-to-equity ratio of 5.48, a current ratio of 0.04 and a quick ratio of 0.04. Service Properties Trust has a 1-year low of $1.71 and a 1-year high of $5.31. The company has a market capitalization of $411.60 million, a P/E ratio of -1.48 and a beta of 1.91. The firm's 50 day simple moving average is $2.56 and its two-hundred day simple moving average is $2.46.

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 for the quarter, beating the consensus estimate of $0.34 by $0.01. Service Properties Trust had a negative net margin of 14.73% and a negative return on equity of 33.14%. The business had revenue of $503.44 million for the quarter, compared to the consensus estimate of $497.53 million.

Service Properties Trust Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 14th. Shareholders of record on Monday, July 21st will be issued a dividend of $0.01 per share. The ex-dividend date of this dividend is Monday, July 21st. This represents a $0.04 annualized dividend and a yield of 1.6%. Service Properties Trust's payout ratio is currently -2.40%.

Analyst Upgrades and Downgrades

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

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.