Zacks Research Downgrades Service Properties Trust (NASDAQ:SVC) to Strong Sell

Service Properties Trust (NASDAQ:SVC) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued on Tuesday,Zacks.com reports.

SVC has been the topic of several other research reports. Weiss Ratings downgraded Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, May 26th. LADENBURG THALM/SH SH began coverage on shares of Service Properties Trust in a research report on Tuesday, June 30th. They set a “buy” rating and a $11.25 price target on the stock. Odeon Capital Group initiated coverage on shares of Service Properties Trust in a report on Friday, May 8th. They issued a “buy” rating and a $17.50 price objective for the company. B. Riley Financial increased their target price on shares of Service Properties Trust from $10.00 to $12.50 and gave the stock a “buy” rating in a report on Wednesday, June 17th. Finally, Wall Street Zen downgraded shares of Service Properties Trust from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Service Properties Trust presently has an average rating of “Hold” and an average price target of $12.81.

Service Properties Trust Stock Performance

Shares of SVC stock opened at $8.57 on Tuesday. The company has a debt-to-equity ratio of 4.56, a quick ratio of 0.01 and a current ratio of 0.01. The firm has a market cap of $1.11 billion, a P/E ratio of -1.21 and a beta of 1.65. The firm’s 50 day moving average price is $8.33 and its 200-day moving average price is $9.11. Service Properties Trust has a one year low of $5.65 and a one year high of $15.38.

Service Properties Trust (NASDAQ:SVC) last posted its earnings results on Wednesday, May 6th. The real estate investment trust reported $0.20 earnings per share for the quarter, beating the consensus estimate of ($1.82) by $2.02. 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 during the quarter, compared to the consensus estimate of $347.82 million. Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. As a group, equities research analysts predict that Service Properties Trust will post 1.25 EPS for the current year.

Institutional Trading of Service Properties Trust

A number of large investors have recently made changes to their positions in SVC. Yorkville Advisors Global LP acquired a new stake in Service Properties Trust in the first quarter valued at approximately $28,333,000. Lonestar Capital Management LLC purchased a new stake in shares of Service Properties Trust in the 3rd quarter valued at approximately $7,412,000. Goldman Sachs Group Inc. raised its holdings in shares of Service Properties Trust by 114.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,118,530 shares of the real estate investment trust’s stock valued at $10,749,000 after purchasing an additional 2,200,754 shares in the last quarter. Silver Point Capital L.P. raised its holdings in shares of Service Properties Trust by 93.3% in the 4th quarter. Silver Point Capital L.P. now owns 3,439,000 shares of the real estate investment trust’s stock valued at $6,328,000 after purchasing an additional 1,660,000 shares in the last quarter. Finally, Philosophy Capital Management LLC purchased a new stake in shares of Service Properties Trust during the 3rd quarter worth $3,838,000. 77.62% of the stock is currently owned by hedge funds and other institutional investors.

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.