Service Properties Trust (NASDAQ:SVC) Releases Earnings Results, Misses Expectations By $0.55 EPS

Service Properties Trust (NASDAQ:SVC) announced its earnings results on Wednesday. The real estate investment trust reported ($0.91) EPS for the quarter, missing analysts’ consensus estimates of ($0.36) by ($0.55), FiscalAI reports. Service Properties Trust had a negative net margin of 11.15% and a negative return on equity of 29.70%. The business had revenue of $364.45 million for the quarter, compared to the consensus estimate of $347.82 million. Service Properties Trust updated its FY 2026 guidance to 0.240-0.270 EPS.

Service Properties Trust Stock Up 2.6%

Shares of SVC traded up $0.04 during trading hours on Wednesday, hitting $1.58. The company had a trading volume of 6,050,831 shares, compared to its average volume of 6,569,880. The firm has a fifty day moving average price of $1.75 and a 200-day moving average price of $1.90. The company has a debt-to-equity ratio of 5.00, a quick ratio of 0.14 and a current ratio of 0.14. The stock has a market capitalization of $265.52 million, a price-to-earnings ratio of -1.31 and a beta of 1.61. Service Properties Trust has a 52-week low of $1.13 and a 52-week high of $3.08.

Service Properties Trust Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, May 14th. Stockholders of record on Tuesday, April 21st will be given a $0.01 dividend. This represents a $0.04 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, April 21st. Service Properties Trust’s payout ratio is currently -3.31%.

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. B. Riley Financial upgraded shares of Service Properties Trust from a “neutral” rating to a “buy” rating and set a $2.00 target price on the stock in a report on Thursday, April 2nd. Zacks Research lowered Service Properties Trust from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 30th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Service Properties Trust in a research report on Tuesday, April 21st. Wall Street Zen raised Service Properties Trust from a “sell” rating to a “hold” rating in a research report on Saturday, March 28th. Finally, Wells Fargo & Company lowered their price target on Service Properties Trust from $2.50 to $2.00 and set an “equal weight” rating for the company in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus price target of $2.00.

Insiders Place Their Bets

In other Service Properties Trust news, CFO Brian E. Donley bought 55,000 shares of the firm’s stock in a transaction on Thursday, April 2nd. The stock was acquired at an average price of $1.20 per share, with a total value of $66,000.00. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Donna D. Fraiche bought 83,333 shares of the firm’s stock in a transaction on Thursday, April 2nd. The stock was acquired at an average cost of $1.20 per share, with a total value of $99,999.60. Following the transaction, the director owned 182,013 shares in the company, valued at $218,415.60. The trade was a 84.45% increase in their position. The SEC filing for this purchase provides additional information. Insiders have bought 41,914,999 shares of company stock worth $50,297,999 in the last quarter. Insiders own 1.57% of the company’s stock.

Hedge Funds Weigh In On Service Properties Trust

A number of hedge funds have recently bought and sold shares of SVC. Lonestar Capital Management LLC purchased a new position in Service Properties Trust in the 3rd quarter worth about $7,412,000. Goldman Sachs Group Inc. raised its position in 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 worth $10,749,000 after buying an additional 2,200,754 shares during the last quarter. Silver Point Capital L.P. increased its position in shares of Service Properties Trust by 93.3% during 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 during the last quarter. Philosophy Capital Management LLC purchased a new stake in shares of Service Properties Trust during the 3rd quarter valued at about $3,838,000. Finally, Varde Management L.P. purchased a new stake in shares of Service Properties Trust during the 3rd quarter valued at about $3,695,000. Hedge funds and other institutional investors own 77.62% of the company’s stock.

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.