Service Properties Trust (NASDAQ:SVC) Issues Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Service Properties Trust (NASDAQ:SVC) issued its earnings results on Wednesday. The real estate investment trust reported $0.17 EPS for the quarter, topping analysts’ consensus estimates of $0.01 by $0.16, reports. Service Properties Trust had a negative net margin of 14.83% and a negative return on equity of 37.94%. The business had revenue of $397.45 million for the quarter, compared to analyst estimates of $394.32 million. Service Properties Trust updated its FY 2026 guidance to 0.650-0.770 EPS.

Service Properties Trust Stock Up 7.4%

Shares of SVC stock traded up $0.16 during trading hours on Thursday, reaching $2.37. 1,045,414 shares of the company’s stock were exchanged, compared to its average volume of 1,622,147. Service Properties Trust has a fifty-two week low of $1.55 and a fifty-two week high of $3.08. The stock’s 50 day moving average is $2.05 and its 200-day moving average is $2.22. The company has a current ratio of 0.17, a quick ratio of 0.17 and a debt-to-equity ratio of 5.68. The company has a market cap of $398.88 million, a price-to-earnings ratio of -1.43 and a beta of 1.46.

Service Properties Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Shareholders of record on Monday, January 26th were issued a $0.01 dividend. This represents a $0.04 annualized dividend and a yield of 1.7%. The ex-dividend date of this dividend was Monday, January 26th. Service Properties Trust’s payout ratio is currently -2.40%.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on SVC. Zacks Research downgraded Service Properties Trust from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Wells Fargo & Company cut their target price on shares of Service Properties Trust from $2.50 to $2.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 22nd. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Service Properties Trust in a research report on Thursday, January 22nd. Three research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus price target of $2.50.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SVC. Abel Hall LLC acquired a new stake in Service Properties Trust in the fourth quarter worth about $32,000. Caxton Associates LLP purchased a new position in shares of Service Properties Trust in the 3rd quarter valued at approximately $33,000. BNP Paribas Financial Markets boosted its stake in Service Properties Trust by 54.4% in the 2nd quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust’s stock worth $35,000 after purchasing an additional 5,099 shares in the last quarter. CIBC Bancorp USA Inc. purchased a new stake in Service Properties Trust during the 3rd quarter worth approximately $45,000. Finally, Jain Global LLC grew its position in Service Properties Trust by 37.8% during the 4th quarter. Jain Global LLC now owns 34,638 shares of the real estate investment trust’s stock worth $64,000 after purchasing an additional 9,500 shares during the last quarter. 77.62% of the stock is owned by institutional investors and hedge funds.

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.