CastleKnight Management LP Reduces Stock Position in Service Properties Trust $SVC

CastleKnight Management LP cut its stake in Service Properties Trust (NASDAQ:SVC) by 32.2% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 1,540,352 shares of the real estate investment trust’s stock after selling 732,285 shares during the period. CastleKnight Management LP’s holdings in Service Properties Trust were worth $2,834,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in SVC. Caxton Associates LLP acquired a new stake in shares of Service Properties Trust in the third quarter valued at approximately $33,000. Savant Capital LLC acquired a new stake in shares of Service Properties Trust in the third quarter valued at approximately $37,000. BNP Paribas Financial Markets grew its position in shares of Service Properties Trust by 54.4% in the second quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust’s stock valued at $35,000 after purchasing an additional 5,099 shares during the last quarter. HighRoad Wealth Advisors LLC acquired a new stake in shares of Service Properties Trust in the fourth quarter valued at approximately $29,000. Finally, CIBC Bancorp USA Inc. acquired a new stake in shares of Service Properties Trust in the third quarter valued at approximately $45,000. 77.62% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other news, Director Donna D. Fraiche bought 83,333 shares of the firm’s stock in a transaction that occurred on Thursday, April 2nd. The shares were purchased at an average price of $1.20 per share, for a total transaction of $99,999.60. Following the completion of the transaction, the director owned 182,013 shares in the company, valued at $218,415.60. The trade was a 84.45% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Christopher J. Bilotto bought 100,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 2nd. The shares were purchased at an average price of $1.20 per share, for a total transaction of $120,000.00. The SEC filing for this purchase provides additional information. Insiders have bought a total of 41,914,999 shares of company stock worth $50,297,999 in the last three months. 1.57% of the stock is owned by insiders.

Analysts Set New Price Targets

Several analysts have recently commented on the stock. B. Riley Financial increased their price target on shares of Service Properties Trust from $2.00 to $2.50 and gave the company a “buy” rating in a research report on Wednesday. Weiss Ratings lowered shares of Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Tuesday, May 26th. Wall Street Zen lowered shares of Service Properties Trust from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Finally, Odeon Capital Group assumed coverage on shares of Service Properties Trust in a research report on Friday, May 8th. They issued a “buy” rating and a $3.50 price target on the stock. Two 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 stock. According to data from MarketBeat.com, Service Properties Trust currently has a consensus rating of “Hold” and a consensus target price of $2.67.

Service Properties Trust Stock Down 1.2%

SVC stock opened at $1.60 on Thursday. Service Properties Trust has a 12 month low of $1.13 and a 12 month high of $3.08. The company’s 50 day simple moving average is $1.58 and its 200-day simple moving average is $1.84. The firm has a market capitalization of $1.04 billion, a PE ratio of -1.13 and a beta of 1.65. The company has a debt-to-equity ratio of 4.56, a current ratio of 0.01 and a quick ratio of 0.01.

Service Properties Trust (NASDAQ:SVC) last announced its earnings results on Wednesday, May 6th. The real estate investment trust reported $0.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.36) by $0.40. Service Properties Trust had a negative net margin of 13.59% and a negative return on equity of 38.18%. The firm had revenue of $364.45 million for the quarter, compared to analyst estimates of $347.82 million. Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. Equities analysts expect that Service Properties Trust will post 0.25 earnings per share for the current fiscal year.

Service Properties Trust Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, May 14th. Investors of record on Tuesday, April 21st were given a dividend of $0.01 per share. The ex-dividend date was Tuesday, April 21st. This represents a $0.04 dividend on an annualized basis and a yield of 2.5%. Service Properties Trust’s dividend payout ratio (DPR) is -2.82%.

About Service Properties Trust

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.