Service Properties Trust (NASDAQ:SVC) Shares Gap Down – Here’s What Happened

Service Properties Trust (NASDAQ:SVC)’s share price gapped down prior to trading on Thursday . The stock had previously closed at $3.31, but opened at $3.02. Service Properties Trust shares last traded at $3.30, with a volume of 252,297 shares.

Wall Street Analyst Weigh In

SVC has been the topic of several recent analyst reports. B. Riley cut their target price 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 cut their target price on shares of 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 Trading Down 4.5 %

The firm has a market cap of $524.21 million, a P/E ratio of -2.71 and a beta of 2.23. The firm’s fifty day moving average is $4.30 and its two-hundred day moving average is $4.97. The company has a quick ratio of 0.01, a current ratio of 0.01 and a debt-to-equity ratio of 3.98.

Service Properties Trust (NASDAQ:SVC) last released its quarterly earnings results on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share for the quarter, missing the consensus estimate of $0.49 by ($0.94). The company had revenue of $512.95 million during the quarter, compared to the consensus estimate of $509.33 million. Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. During the same quarter last year, the firm earned $0.58 EPS. Analysts predict 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 declared a quarterly dividend, which will be paid on Thursday, November 14th. Investors of record on Monday, October 28th will be issued a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 1.27%. The ex-dividend date is Monday, October 28th. Service Properties Trust’s dividend payout ratio (DPR) is currently -3.28%.

Hedge Funds Weigh In On Service Properties Trust

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Capital Management Corp VA lifted its position in Service Properties Trust by 9.6% during the third 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 period. Texas Permanent School Fund Corp raised its position in shares of Service Properties Trust by 1.7% in the 1st quarter. Texas Permanent School Fund Corp now owns 145,080 shares of the real estate investment trust’s stock worth $984,000 after purchasing an additional 2,476 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Service Properties Trust by 6.3% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 100,570 shares of the real estate investment trust’s stock worth $682,000 after purchasing an additional 5,948 shares during the last quarter. Whitebox Advisors LLC raised its position in shares of Service Properties Trust by 167.7% in the 2nd quarter. Whitebox Advisors LLC now owns 610,602 shares of the real estate investment trust’s stock worth $3,138,000 after purchasing an additional 382,502 shares during the last quarter. Finally, Sequoia Financial Advisors LLC purchased a new position in shares of Service Properties Trust in the 2nd quarter worth about $68,000. Hedge funds and other institutional investors own 77.62% of the company’s stock.

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.