Service Properties Trust (NASDAQ:SVC) Shares Gap Up – Still a Buy?

Service Properties Trust (NASDAQ:SVC) shares gapped up prior to trading on Wednesday . The stock had previously closed at $2.49, but opened at $2.70. Service Properties Trust shares last traded at $3.04, with a volume of 3,883,911 shares changing hands.

Analysts Set New Price Targets

Separately, Wells Fargo & Company upgraded shares of Service Properties Trust from an “underweight” rating to an “overweight” rating and boosted their price objective for the company from $2.50 to $4.00 in a report on Wednesday.

Service Properties Trust Stock Performance

The company has a market capitalization of $497.41 million, a price-to-earnings ratio of -2.04 and a beta of 2.20. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.03 and a current ratio of 0.03. The firm has a 50-day simple moving average of $2.70 and a two-hundred day simple moving average of $3.23.

Service Properties Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, February 20th. Shareholders of record on Monday, January 27th were given a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 1.34%. The ex-dividend date was Monday, January 27th. Service Properties Trust’s dividend payout ratio is currently -2.40%.

Hedge Funds Weigh In On Service Properties Trust

Several institutional investors have recently bought and sold shares of SVC. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of Service Properties Trust during the fourth quarter worth about $626,000. Alpine Global Management LLC acquired a new position in shares of Service Properties Trust during the fourth quarter worth about $200,000. Two Sigma Advisers LP grew its position in shares of Service Properties Trust by 805.0% during the fourth quarter. Two Sigma Advisers LP now owns 400,900 shares of the real estate investment trust’s stock worth $1,018,000 after buying an additional 356,600 shares in the last quarter. Two Sigma Investments LP acquired a new position in shares of Service Properties Trust during the fourth quarter worth about $1,807,000. Finally, Tidal Investments LLC acquired a new position in shares of Service Properties Trust during the fourth quarter worth about $33,000. 77.62% of the stock is owned by institutional investors and hedge funds.

Service Properties Trust Company Profile

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.