Service Properties Trust (NASDAQ:SVC) Sets New 52-Week Low on Disappointing Earnings

Shares of Service Properties Trust (NASDAQ:SVC) hit a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $4.81 and last traded at $4.83, with a volume of 1047619 shares traded. The stock had previously closed at $5.18.

The real estate investment trust reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 7.29% and a negative return on equity of 11.01%. The company had revenue of $512.95 million for the quarter, compared to analysts’ expectations of $509.33 million. During the same period in the previous year, the firm earned $0.58 EPS.

Service Properties Trust Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Thursday, August 15th. Shareholders of record on Monday, July 22nd will be issued a $0.20 dividend. This represents a $0.80 annualized dividend and a yield of 17.17%. The ex-dividend date of this dividend is Monday, July 22nd. Service Properties Trust’s payout ratio is -95.24%.

Analysts Set New Price Targets

Separately, B. Riley lowered their price objective on Service Properties Trust from $9.00 to $8.00 and set a “buy” rating on the stock in a research report on Friday.

Institutional Trading of Service Properties Trust

Institutional investors and hedge funds have recently made changes to their positions in the stock. ProShare Advisors LLC grew its position in Service Properties Trust by 7.4% in the first quarter. ProShare Advisors LLC now owns 33,275 shares of the real estate investment trust’s stock worth $226,000 after acquiring an additional 2,287 shares in the last quarter. Handelsbanken Fonder AB boosted its holdings in shares of Service Properties Trust by 6.9% in the 4th quarter. Handelsbanken Fonder AB now owns 35,400 shares of the real estate investment trust’s stock worth $302,000 after purchasing an additional 2,300 shares in the last quarter. Texas Permanent School Fund Corp increased its position in shares of Service Properties Trust by 1.7% during the 1st quarter. Texas Permanent School Fund Corp now owns 145,080 shares of the real estate investment trust’s stock valued at $984,000 after purchasing an additional 2,476 shares during the last quarter. Nomura Asset Management Co. Ltd. raised its holdings in shares of Service Properties Trust by 1.6% during the 4th quarter. Nomura Asset Management Co. Ltd. now owns 188,400 shares of the real estate investment trust’s stock valued at $1,609,000 after buying an additional 2,900 shares in the last quarter. Finally, PNC Financial Services Group Inc. lifted its position in Service Properties Trust by 30.1% in the 4th quarter. PNC Financial Services Group Inc. now owns 13,553 shares of the real estate investment trust’s stock worth $116,000 after buying an additional 3,135 shares during the last quarter. Hedge funds and other institutional investors own 77.62% of the company’s stock.

Service Properties Trust Stock Performance

The company has a debt-to-equity ratio of 3.58, a current ratio of 0.04 and a quick ratio of 0.04. The company has a 50 day simple moving average of $5.27 and a 200-day simple moving average of $6.18. The firm has a market cap of $772.44 million, a PE ratio of -5.49 and a beta of 2.21.

About Service Properties Trust

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.