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

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

Other research analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of Service Properties Trust from a “hold” rating to a “sell” rating in a report on Saturday, May 9th. Weiss Ratings lowered Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a report on Tuesday, May 26th. B. Riley Financial lifted their target price on Service Properties Trust from $10.00 to $12.50 and gave the stock a “buy” rating in a research report on Wednesday, June 17th. Odeon Capital Group assumed coverage on Service Properties Trust in a research report on Friday, May 8th. They issued a “buy” rating and a $17.50 target price for the company. Finally, LADENBURG THALM/SH SH assumed coverage on Service Properties Trust in a research note on Tuesday, June 30th. They set a “buy” rating and a $11.25 price target on the stock. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $12.81.

Service Properties Trust Price Performance

Shares of NASDAQ SVC 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. Service Properties Trust has a fifty-two week low of $5.65 and a fifty-two week high of $15.38. The firm has a market capitalization of $1.11 billion, a PE ratio of -1.21 and a beta of 1.65. The stock’s 50-day simple moving average is $8.33 and its 200-day simple moving average is $9.11.

Service Properties Trust (NASDAQ:SVC) last announced its quarterly earnings results on Wednesday, May 6th. The real estate investment trust reported $0.20 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($1.82) by $2.02. The firm had revenue of $364.45 million during the quarter, compared to the consensus estimate of $347.82 million. Service Properties Trust had a negative return on equity of 38.18% and a negative net margin of 13.59%.Service Properties Trust has set its FY 2026 guidance at 0.240-0.270 EPS. As a group, equities research analysts forecast that Service Properties Trust will post 1.25 EPS for the current fiscal year.

Institutional Investors Weigh In On Service Properties Trust

Institutional investors and hedge funds have recently made changes to their positions in the business. Bank of America Corp DE grew its holdings in shares of Service Properties Trust by 1.8% during the first quarter. Bank of America Corp DE now owns 2,338,854 shares of the real estate investment trust’s stock worth $3,169,000 after buying an additional 42,317 shares during the last quarter. SummitTX Capital L.P. acquired a new stake in Service Properties Trust during the 1st quarter worth approximately $88,000. Arrowstreet Capital Limited Partnership purchased a new position in shares of Service Properties Trust in the 1st quarter valued at approximately $95,000. Sei Investments Co. increased its holdings in shares of Service Properties Trust by 17.6% in the first quarter. Sei Investments Co. now owns 148,593 shares of the real estate investment trust’s stock valued at $201,000 after purchasing an additional 22,267 shares during the period. Finally, Yorkville Advisors Global LP acquired a new position in shares of Service Properties Trust in the first quarter valued at approximately $28,333,000. 77.62% of the stock is 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.