Service Properties Trust (NASDAQ:SVC) Shares Climb 21.2% After Dividend Announcement

Service Properties Trust (NASDAQ:SVC)’s stock price was up 21.2% on Friday after the company announced a dividend. The company traded as high as $6.59 and last traded at $7.5390. 2,084,344 shares changed hands during trading, an increase of 36% from the average session volume of 1,534,376 shares. The stock had previously closed at $6.22.

The newly announced dividend which will be paid on Thursday, November 12th. Stockholders of record on Monday, October 19th will be given a dividend of $0.05 per share. The ex-dividend date is Monday, October 19th. This represents a $0.20 annualized dividend and a dividend yield of 2.7%. Service Properties Trust’s payout ratio is currently -2.60%.

Wall Street Analyst Weigh In

A number of brokerages recently commented on SVC. B. Riley Financial lifted their price objective on Service Properties Trust from $10.00 to $12.50 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. LADENBURG THALM/SH SH initiated coverage on Service Properties Trust in a research note on Tuesday, June 30th. They issued a “buy” rating and a $11.25 target price on the stock. Loop Capital set a $9.00 target price on Service Properties Trust in a report on Friday, October 2nd. Weiss Ratings raised shares of Service Properties Trust from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, July 29th. Finally, Zacks Research upgraded shares of Service Properties Trust from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 12th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, Service Properties Trust has a consensus rating of “Hold” and a consensus price target of $12.05.

Service Properties Trust Stock Up 21.2%

The firm’s 50-day simple moving average is $7.33 and its 200 day simple moving average is $7.83. The company has a debt-to-equity ratio of 2.11, a quick ratio of 0.01 and a current ratio of 0.01. The stock has a market capitalization of $976.37 million, a P/E ratio of -0.99 and a beta of 1.72.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Farringdon Capital Ltd. acquired a new stake in Service Properties Trust during the 2nd quarter worth approximately $37,000. Abel Hall LLC boosted its stake in Service Properties Trust by 69.3% in the 1st quarter. Abel Hall LLC now owns 29,395 shares of the real estate investment trust’s stock valued at $40,000 after purchasing an additional 12,033 shares during the period. AdvisorShares Investments LLC acquired a new position in Service Properties Trust in the 1st quarter valued at $44,000. Sequoia Financial Advisors LLC bought a new position in Service Properties Trust during the 2nd quarter worth $66,000. Finally, Squarepoint Ops LLC bought a new position in Service Properties Trust during the 2nd quarter worth $71,000. 77.62% of the stock is owned by institutional investors.

About Service Properties Trust

Service Properties Trust (NASDAQ:SVC) is a real estate investment trust that owns and invests in hotels and service-oriented commercial properties. The company generally leases its properties to operating companies under long-term agreements, generating rental income from a diversified portfolio.

Service Properties Trust’s hotel portfolio includes properties operated under well-known brands and independent names, while its service-focused properties serve businesses such as travel centers, healthcare providers and other essential-service operators.