Service Properties Trust (NASDAQ:SVC) Posts Earnings Results, Beats Expectations By $0.63 EPS

Service Properties Trust (NASDAQ:SVC) issued its quarterly earnings data on Wednesday. The real estate investment trust reported $0.43 EPS for the quarter, topping the consensus estimate of ($0.20) by $0.63, Zacks reports. Service Properties Trust had a negative return on equity of 38.18% and a negative net margin of 13.59%.The business had revenue of $420.97 million for the quarter, compared to the consensus estimate of $403.53 million. Service Properties Trust updated its FY 2026 guidance to 1.200-1.350 EPS.

Service Properties Trust Stock Up 7.2%

NASDAQ SVC traded up $0.57 during trading hours on Thursday, hitting $8.45. 3,451,103 shares of the company traded hands, compared to its average volume of 1,569,271. 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 business’s 50-day moving average is $8.42 and its 200-day moving average is $8.93. The stock has a market capitalization of $1.09 billion, a price-to-earnings ratio of -1.19 and a beta of 1.67. Service Properties Trust has a twelve month low of $5.65 and a twelve month high of $15.05.

Service Properties Trust Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, August 13th. Stockholders of record on Monday, July 20th will be issued a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, July 20th. This is a positive change from Service Properties Trust’s previous quarterly dividend of $0.05. Service Properties Trust’s dividend payout ratio is -2.82%.

Hedge Funds Weigh In On Service Properties Trust

A number of institutional investors have recently added to or reduced their stakes in SVC. Caxton Associates LLP acquired a new stake in Service Properties Trust in the third quarter valued at $33,000. BNP Paribas Financial Markets increased its stake in shares of Service Properties Trust by 54.4% during the 2nd quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust’s stock worth $35,000 after purchasing an additional 5,099 shares during the last quarter. CIBC Bancorp USA Inc. bought a new stake in shares of Service Properties Trust in the 3rd quarter valued at about $45,000. Abel Hall LLC acquired a new stake in Service Properties Trust in the 4th quarter valued at about $32,000. Finally, Russell Investments Group Ltd. lifted its stake in Service Properties Trust by 98.9% in the 3rd quarter. Russell Investments Group Ltd. now owns 24,150 shares of the real estate investment trust’s stock valued at $65,000 after purchasing an additional 12,006 shares during the last quarter. 77.62% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on SVC. Wall Street Zen cut Service Properties Trust from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Zacks Research downgraded shares of Service Properties Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 7th. B. Riley Financial lifted their price target on shares of Service Properties Trust from $10.00 to $12.50 and gave the company a “buy” rating in a research note on Wednesday, June 17th. Odeon Capital Group started coverage on shares of Service Properties Trust in a report on Friday, May 8th. They issued a “buy” rating and a $17.50 price target for the company. Finally, LADENBURG THALM/SH SH initiated 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 objective for the company. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Service Properties Trust presently has a consensus rating of “Hold” and an average target price of $12.81.

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.