Service Properties Trust (NASDAQ:SVC) Announces Quarterly Earnings Results, Beats Estimates By $0.63 EPS

Service Properties Trust (NASDAQ:SVC) posted its quarterly earnings results on Wednesday. The real estate investment trust reported $0.43 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.20) by $0.63, Zacks reports. The company had revenue of $420.97 million for the quarter, compared to the consensus estimate of $403.53 million. Service Properties Trust had a negative net margin of 13.59% and a negative return on equity of 38.18%. Service Properties Trust updated its FY 2026 guidance to 1.200-1.350 EPS.

Service Properties Trust Stock Up 7.2%

Shares of NASDAQ:SVC traded up $0.57 during mid-day trading on Thursday, hitting $8.45. 3,451,092 shares of the company traded hands, compared to its average volume of 1,569,270. The firm’s 50 day simple moving average is $8.42 and its 200 day simple moving average is $8.93. The firm has a market cap of $1.09 billion, a P/E ratio of -1.19 and a beta of 1.67. 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 52-week low of $5.65 and a 52-week high of $15.05.

Service Properties Trust Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, August 13th. Investors of record on Monday, July 20th will be issued a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Monday, July 20th. This is an increase from Service Properties Trust’s previous quarterly dividend of $0.05. Service Properties Trust’s dividend payout ratio (DPR) is -2.82%.

Institutional Investors Weigh In On Service Properties Trust

A number of large investors have recently added to or reduced their stakes in the company. Abel Hall LLC acquired a new stake in shares of Service Properties Trust during the fourth quarter valued at about $32,000. Caxton Associates LLP acquired a new stake in shares of Service Properties Trust in the 3rd quarter valued at about $33,000. BNP Paribas Financial Markets raised its stake in shares of 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 valued at $35,000 after purchasing an additional 5,099 shares in the last quarter. CIBC Bancorp USA Inc. bought a new position in shares of Service Properties Trust during the third quarter worth about $45,000. Finally, Jain Global LLC lifted its position in shares of Service Properties Trust by 37.8% during the fourth 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.

Wall Street Analyst Weigh In

A number of analysts have recently commented on SVC shares. Odeon Capital Group started coverage on Service Properties Trust in a report on Friday, May 8th. They set a “buy” rating and a $17.50 price objective for the company. Zacks Research cut Service Properties Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 7th. B. Riley Financial boosted their price target on Service Properties Trust from $10.00 to $12.50 and gave the company a “buy” rating in a research report on Wednesday, June 17th. Wall Street Zen lowered Service Properties Trust from a “hold” rating to a “sell” rating in a research note on Saturday, May 9th. Finally, LADENBURG THALM/SH SH initiated coverage on Service Properties Trust in a report on Tuesday, June 30th. They issued a “buy” rating and a $11.25 price objective on the stock. Three investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Service Properties Trust currently has an average rating of “Hold” and an average price target of $12.81.

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.