Weiss Ratings Reiterates Sell (D-) Rating for Service Properties Trust (NASDAQ:SVC)

Key Points

• Weiss Ratings has reiterated a "Sell (D-)" rating for Service Properties Trust (NASDAQ:SVC), indicating continued concerns about the company's performance.
• Other brokerages are also downgrading SVC, with Zacks Research revising its rating from "Hold" to "Strong Sell" and B. Riley maintaining a "Neutral" rating with a price target increase to $3.00.
• Service Properties Trust reported $503.44 million in revenue for the last quarter, surpassing estimates, but continues to face challenges with a negative return on equity of 34.61% and a negative net margin of 14.73%.

Service Properties Trust (NASDAQ:SVC - Get Free Report)'s stock had its "sell (d-)" rating reiterated by stock analysts at Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Several other brokerages have also weighed in on SVC. Zacks Research lowered Service Properties Trust from a "hold" rating to a "strong sell" rating in a research report on Tuesday, August 19th. Wells Fargo & Company upgraded Service Properties Trust to a "hold" rating in a research note on Friday, October 3rd. Finally, B. Riley restated a "neutral" rating and set a $3.00 price target (up from $2.00) on shares of Service Properties Trust in a research note on Thursday, September 25th. Two investment analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Reduce" and an average price target of $2.75.

Service Properties Trust Trading Up 0.4%

Shares of Service Properties Trust stock opened at $2.49 on Wednesday. The firm has a market capitalization of $415.48 million, a price-to-earnings ratio of -1.49 and a beta of 1.88. Service Properties Trust has a fifty-two week low of $1.71 and a fifty-two week high of $4.81. The company has a debt-to-equity ratio of 5.79, a quick ratio of 0.04 and a current ratio of 0.04. The stock has a 50 day moving average of $2.68 and a 200 day moving average of $2.45.

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

Institutional Trading of Service Properties Trust

Several hedge funds have recently modified their holdings of the stock. BNP Paribas Financial Markets raised its stake in shares of Service Properties Trust by 54.4% in the second quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust's stock valued at $35,000 after acquiring an additional 5,099 shares in the last quarter. Public Employees Retirement System of Ohio raised its stake in shares of Service Properties Trust by 2.1% in the second quarter. Public Employees Retirement System of Ohio now owns 261,809 shares of the real estate investment trust's stock valued at $626,000 after acquiring an additional 5,457 shares in the last quarter. Quadrature Capital Ltd raised its stake in shares of Service Properties Trust by 45.3% in the second quarter. Quadrature Capital Ltd now owns 17,911 shares of the real estate investment trust's stock valued at $43,000 after acquiring an additional 5,588 shares in the last quarter. Metis Global Partners LLC raised its stake in shares of Service Properties Trust by 30.0% in the second quarter. Metis Global Partners LLC now owns 27,466 shares of the real estate investment trust's stock valued at $66,000 after acquiring an additional 6,343 shares in the last quarter. Finally, Cambridge Investment Research Advisors Inc. raised its stake in shares of Service Properties Trust by 40.5% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,121 shares of the real estate investment trust's stock valued at $60,000 after acquiring an additional 6,659 shares in the last quarter. 77.62% of the stock is currently owned by institutional investors and hedge funds.

About Service Properties Trust

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.

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