Service Properties Trust (NASDAQ:SVC) Shares Gap Down – Here’s What Happened

Service Properties Trust (NASDAQ:SVC)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $3.31, but opened at $3.02. Service Properties Trust shares last traded at $3.30, with a volume of 252,297 shares traded.

Wall Street Analyst Weigh In

A number of equities analysts have weighed in on SVC shares. B. Riley cut their target price on shares of Service Properties Trust from $9.00 to $8.00 and set a “buy” rating for the company in a research report on Friday, August 9th. Wells Fargo & Company cut their target price on shares of Service Properties Trust from $5.00 to $4.00 and set an “underweight” rating for the company in a research report on Friday, September 13th.

Service Properties Trust Stock Performance

The stock has a market capitalization of $524.21 million, a PE ratio of -2.71 and a beta of 2.23. The company has a debt-to-equity ratio of 3.98, a current ratio of 0.01 and a quick ratio of 0.01. The business’s fifty day moving average price is $4.30 and its 200-day moving average price is $4.97.

Service Properties Trust (NASDAQ:SVC) last announced its earnings results on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). The company had revenue of $512.95 million during the quarter, compared to analysts’ expectations of $509.33 million. Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. During the same period in the prior year, the business earned $0.58 earnings per share. As a group, equities research analysts expect that Service Properties Trust will post 1.21 EPS for the current year.

Service Properties Trust Cuts Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, November 14th. Investors of record on Monday, October 28th will be paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.27%. The ex-dividend date of this dividend is Monday, October 28th. Service Properties Trust’s dividend payout ratio is currently -3.28%.

Institutional Investors Weigh In On Service Properties Trust

Institutional investors and hedge funds have recently bought and sold shares of the stock. Xponance Inc. purchased a new position in shares of Service Properties Trust during the second quarter worth approximately $53,000. Choreo LLC purchased a new position in shares of Service Properties Trust during the second quarter worth approximately $54,000. Sequoia Financial Advisors LLC purchased a new position in shares of Service Properties Trust during the second quarter worth approximately $68,000. Family Wealth Partners LLC purchased a new position in shares of Service Properties Trust during the third quarter worth approximately $69,000. Finally, NorthRock Partners LLC purchased a new position in shares of Service Properties Trust during the first quarter worth approximately $75,000. 77.62% of the stock is owned by hedge funds and other institutional investors.

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.