Service Properties Trust (NASDAQ:SVC) Hits New 1-Year Low – Time to Sell?

Service Properties Trust (NASDAQ:SVC)’s stock price reached a new 52-week low during mid-day trading on Thursday. The company traded as low as $5.59 and last traded at $5.6350, with a volume of 939,765 shares changing hands. The stock had previously closed at $6.28.

Analyst Upgrades and Downgrades

SVC has been the subject of a number of research analyst reports. Weiss Ratings lowered shares of Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Thursday, October 8th. Zacks Research raised Service Properties Trust from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 12th. Finally, Loop Capital set a $9.00 price objective on Service Properties Trust in a research note on Friday, October 2nd. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Service Properties Trust presently has an average rating of “Hold” and an average target price of $12.05.

Service Properties Trust Trading Down 12.3%

The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 2.11. The business’s fifty day simple moving average is $6.62 and its two-hundred day simple moving average is $8.30. The stock has a market capitalization of $713.47 million, a P/E ratio of -0.71 and a beta of 1.78.

Service Properties Trust (NASDAQ:SVC) last posted its quarterly earnings results on Wednesday, November 4th. The real estate investment trust reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.29) by $0.63. Service Properties Trust had a negative net margin of 25.44% and a negative return on equity of 65.18%. The company had revenue of $399.52 million for the quarter, compared to analyst estimates of $318.62 million. As a group, analysts forecast that Service Properties Trust will post 1.31 earnings per share for the current year.

Service Properties Trust Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 12th. Investors of record on Monday, October 19th will be paid a $0.05 dividend. This represents a $0.20 annualized dividend and a dividend yield of 3.6%. The ex-dividend date is Monday, October 19th. Service Properties Trust’s dividend payout ratio (DPR) is presently -2.60%.

Hedge Funds Weigh In On Service Properties Trust

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Farringdon Capital Ltd. acquired a new position in Service Properties Trust in the 2nd quarter valued at approximately $37,000. Abel Hall LLC lifted its position in shares of 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 worth $40,000 after acquiring an additional 12,033 shares during the period. Sequoia Financial Advisors LLC acquired a new stake in shares of Service Properties Trust during the 2nd quarter worth approximately $66,000. Squarepoint Ops LLC acquired a new stake in shares of Service Properties Trust during the 2nd quarter worth approximately $71,000. Finally, Vise Technologies Inc. acquired a new stake in shares of Service Properties Trust during the 3rd quarter worth approximately $74,000. 77.62% of the stock is currently owned by institutional investors.

About Service Properties Trust

Service Properties Trust (NASDAQ:SVC) is a real estate investment trust that owns and invests in hospitality and service-oriented properties. The company’s portfolio has historically included hotels, extended-stay lodging properties and other real estate leased to businesses that provide essential or consumer-focused services.

Service Properties Trust generally leases its properties to hotel operators and other commercial tenants rather than managing most locations directly. Its hotel portfolio has included properties operated under a variety of well-known brands, while its service-focused properties have supported businesses such as healthcare, automotive and travel-related services.

The company’s properties are primarily located in the United States, with investments also having included select locations in Canada and Puerto Rico.