Service Properties Trust (NASDAQ:SVC) Sets New 1-Year Low – Time to Sell?

Shares of Service Properties Trust (NASDAQ:SVC) hit a new 52-week low during trading on Monday . The stock traded as low as $3.43 and last traded at $3.43, with a volume of 1650607 shares traded. The stock had previously closed at $3.62.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on the stock. B. Riley decreased their price target on shares of Service Properties Trust from $9.00 to $8.00 and set a “buy” rating on the stock in a report on Friday, August 9th. Wells Fargo & Company reduced their target price on Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating on the stock in a report on Friday, September 13th.

Service Properties Trust Price Performance

The stock has a market cap of $558.61 million, a PE ratio of -3.93 and a beta of 2.20. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 3.98. The company’s fifty day moving average is $4.46 and its 200 day moving average is $5.09.

Service Properties Trust (NASDAQ:SVC) last issued its earnings results on Tuesday, August 6th. The real estate investment trust reported ($0.45) EPS for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. The business had revenue of $512.95 million during the quarter, compared to analysts’ expectations of $509.33 million. During the same period in the prior year, the business posted $0.58 EPS. As a group, sell-side analysts anticipate that Service Properties Trust will post 1.21 earnings per share for the current fiscal year.

Service Properties Trust Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 14th. Stockholders of record on Monday, October 28th will be given a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 1.19%. The ex-dividend date of this dividend is Monday, October 28th. Service Properties Trust’s payout ratio is -4.76%.

Institutional Investors Weigh In On Service Properties Trust

Hedge funds have recently modified their holdings of the stock. Capital Management Corp VA boosted its position in Service Properties Trust by 9.6% in the 3rd quarter. Capital Management Corp VA now owns 5,174,563 shares of the real estate investment trust’s stock valued at $23,596,000 after buying an additional 453,944 shares during the last quarter. Whitebox Advisors LLC grew its stake in Service Properties Trust by 167.7% during the 2nd quarter. Whitebox Advisors LLC now owns 610,602 shares of the real estate investment trust’s stock valued at $3,138,000 after purchasing an additional 382,502 shares in the last quarter. AQR Capital Management LLC increased its holdings in Service Properties Trust by 65.3% during the 2nd quarter. AQR Capital Management LLC now owns 734,572 shares of the real estate investment trust’s stock worth $3,607,000 after purchasing an additional 290,208 shares during the last quarter. Allspring Global Investments Holdings LLC raised its position in shares of Service Properties Trust by 54.6% in the 1st quarter. Allspring Global Investments Holdings LLC now owns 322,544 shares of the real estate investment trust’s stock valued at $2,187,000 after purchasing an additional 113,878 shares in the last quarter. Finally, GSA Capital Partners LLP raised its position in shares of Service Properties Trust by 246.0% in the 1st quarter. GSA Capital Partners LLP now owns 152,710 shares of the real estate investment trust’s stock valued at $1,035,000 after purchasing an additional 108,575 shares in the last quarter. 77.62% of the stock is currently owned by hedge funds and other institutional investors.

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.