Service Properties Trust (NASDAQ:SVC) Short Interest Down 80.0% in July

Key Points

• Short interest in Service Properties Trust plunged 80% in July, falling to 4.47 million shares as of July 15 from 22.39 million at the end of June. That leaves about 3.5% of the float sold short and a short-interest ratio of 2.0 days.
• Institutional ownership remains high, with investors like Goldman Sachs and AQR Capital Management boosting their stakes in recent quarters. Institutional holders now control about 77.62% of the company’s shares.
• The company reported better-than-expected quarterly results and maintained a dividend, posting EPS of $0.20 versus estimates for a loss and revenue above forecasts. Service Properties Trust also declared a $0.05 quarterly dividend, implying a 2.4% annualized yield.

Service Properties Trust (NASDAQ:SVC - Get Free Report) was the recipient of a significant drop in short interest in July. As of July 15th, there was short interest totaling 4,471,072 shares, a drop of 80.0% from the June 30th total of 22,394,106 shares. Based on an average daily trading volume, of 2,200,641 shares, the short-interest ratio is currently 2.0 days. Currently, 3.5% of the shares of the stock are short sold.

Institutional Investors Weigh In On Service Properties Trust

A number of institutional investors have recently made changes to their positions in SVC. AQR Capital Management LLC raised its position in shares of Service Properties Trust by 30.8% during the first quarter. AQR Capital Management LLC now owns 1,346,098 shares of the real estate investment trust's stock worth $3,446,000 after acquiring an additional 317,218 shares during the last quarter. Goldman Sachs Group Inc. increased its position 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 valued at $10,749,000 after purchasing an additional 2,200,754 shares during the period. Strs Ohio bought a new position in Service Properties Trust during the 1st quarter worth approximately $77,000. Cetera Investment Advisers raised its holdings in Service Properties Trust by 54.5% during the 2nd quarter. Cetera Investment Advisers now owns 104,585 shares of the real estate investment trust's stock worth $250,000 after purchasing an additional 36,873 shares during the last quarter. Finally, JPMorgan Chase & Co. raised its holdings in Service Properties Trust by 15.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 955,257 shares of the real estate investment trust's stock worth $2,283,000 after purchasing an additional 125,256 shares during the last quarter. Institutional investors own 77.62% of the company's stock.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Wall Street Zen cut shares of Service Properties Trust from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. B. Riley Financial increased their price target on Service Properties Trust from $10.00 to $12.50 and gave the company a "buy" rating in a research note on Wednesday, June 17th. LADENBURG THALM/SH SH started coverage on Service Properties Trust in a report on Tuesday, June 30th. They set a "buy" rating and a $11.25 price objective on the stock. Zacks Research lowered Service Properties Trust from a "hold" rating to a "strong sell" rating in a research report on Tuesday, July 7th. Finally, Odeon Capital Group assumed coverage on Service Properties Trust in a report on Friday, May 8th. They issued a "buy" rating and a $17.50 target price for the company. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $12.81.

Service Properties Trust Stock Down 0.8%

NASDAQ:SVC opened at $8.46 on Friday. Service Properties Trust has a one year low of $5.65 and a one year high of $15.20. The company has a debt-to-equity ratio of 4.56, a current ratio of 0.01 and a quick ratio of 0.01. The company has a market cap of $1.10 billion, a PE ratio of -1.19 and a beta of 1.65. The firm's 50 day simple moving average is $8.50 and its 200 day simple moving average is $9.08.

Service Properties Trust (NASDAQ:SVC - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.82) by $2.02. The firm had revenue of $364.45 million during the quarter, compared to analysts' expectations of $347.82 million. Service Properties Trust had a negative net margin of 13.59% and a negative return on equity of 38.18%. Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. On average, research analysts anticipate that Service Properties Trust will post 1.25 earnings per share for the current year.

Service Properties Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Monday, July 20th will be issued a $0.05 dividend. The ex-dividend date is Monday, July 20th. This is a positive change from Service Properties Trust's previous quarterly dividend of $0.05. This represents a $0.20 dividend on an annualized basis and a yield of 2.4%. Service Properties Trust's dividend payout ratio (DPR) is currently -2.82%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.