Zacks Research Downgrades Service Properties Trust (NASDAQ:SVC) to Strong Sell

Key Points

• Zacks Research downgraded Service Properties Trust from hold to strong sell, adding to a mixed but recently more negative analyst outlook on the stock.
• Despite the downgrade, the consensus from analysts remains Hold overall, with an average price target of $12.81; three analysts rate it Buy, one Hold, and two Sell.
• Service Properties Trust reported better-than-expected Q1 earnings of $0.20 per share and revenue of $364.45 million, but the company still showed negative net margin and return on equity and carries a high debt-to-equity ratio of 4.56.

Service Properties Trust (NASDAQ:SVC - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday,Zacks.com reports.

SVC has been the topic of several other research reports. Weiss Ratings downgraded Service Properties Trust from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, May 26th. LADENBURG THALM/SH SH began coverage on shares of Service Properties Trust in a research report on Tuesday, June 30th. They set a "buy" rating and a $11.25 price target on the stock. Odeon Capital Group initiated coverage on shares of Service Properties Trust in a report on Friday, May 8th. They issued a "buy" rating and a $17.50 price objective for the company. B. Riley Financial increased their target price on shares of Service Properties Trust from $10.00 to $12.50 and gave the stock a "buy" rating in a report on Wednesday, June 17th. Finally, Wall Street Zen downgraded shares of Service Properties Trust from a "hold" rating to a "sell" rating in a research note on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Service Properties Trust presently has an average rating of "Hold" and an average price target of $12.81.

Service Properties Trust Stock Performance

Shares of SVC stock opened at $8.57 on Tuesday. The company has a debt-to-equity ratio of 4.56, a quick ratio of 0.01 and a current ratio of 0.01. The firm has a market cap of $1.11 billion, a P/E ratio of -1.21 and a beta of 1.65. The firm's 50 day moving average price is $8.33 and its 200-day moving average price is $9.11. Service Properties Trust has a one year low of $5.65 and a one year high of $15.38.

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

Institutional Trading of Service Properties Trust

A number of large investors have recently made changes to their positions in SVC. Yorkville Advisors Global LP acquired a new stake in Service Properties Trust in the first quarter valued at approximately $28,333,000. Lonestar Capital Management LLC purchased a new stake in shares of Service Properties Trust in the 3rd quarter valued at approximately $7,412,000. Goldman Sachs Group Inc. raised its holdings in shares of Service Properties Trust by 114.8% in 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 in the last quarter. Silver Point Capital L.P. raised its holdings in shares of Service Properties Trust by 93.3% in the 4th quarter. Silver Point Capital L.P. now owns 3,439,000 shares of the real estate investment trust's stock valued at $6,328,000 after purchasing an additional 1,660,000 shares in the last quarter. Finally, Philosophy Capital Management LLC purchased a new stake in shares of Service Properties Trust during the 3rd quarter worth $3,838,000. 77.62% of the stock is currently owned by hedge funds and other institutional investors.

Service Properties Trust Company Profile

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.