Wells Fargo & Company Cuts Service Properties Trust (NASDAQ:SVC) Price Target to $4.00

Service Properties Trust (NASDAQ:SVC) had its target price reduced by Wells Fargo & Company from $5.00 to $4.00 in a report issued on Friday morning, Benzinga reports. They currently have an underweight rating on the real estate investment trust’s stock.

Separately, B. Riley dropped their price objective on Service Properties Trust from $9.00 to $8.00 and set a buy rating for the company in a research note on Friday, August 9th.

Service Properties Trust Price Performance

NASDAQ:SVC opened at $4.61 on Friday. The company has a debt-to-equity ratio of 3.98, a quick ratio of 0.01 and a current ratio of 0.01. The company has a 50-day moving average of $5.01 and a 200-day moving average of $5.61. Service Properties Trust has a 52 week low of $4.26 and a 52 week high of $8.72. The company has a market capitalization of $764.75 million, a price-to-earnings ratio of -5.49 and a beta of 2.20.

Service Properties Trust (NASDAQ:SVC) last released its quarterly earnings data on Tuesday, August 6th. The real estate investment trust reported ($0.45) earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.94). Service Properties Trust had a negative net margin of 10.56% and a negative return on equity of 17.17%. The company had revenue of $512.95 million for the quarter, compared to analyst estimates of $509.33 million. During the same period in the previous year, the firm posted $0.58 earnings per share. As a group, equities research analysts anticipate that Service Properties Trust will post 1.21 earnings per share for the current fiscal year.

Service Properties Trust Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, August 15th. Stockholders of record on Monday, July 22nd were issued a $0.20 dividend. This represents a $0.80 annualized dividend and a dividend yield of 17.35%. The ex-dividend date of this dividend was Monday, July 22nd. Service Properties Trust’s payout ratio is currently -95.24%.

Hedge Funds Weigh In On Service Properties Trust

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Victory Capital Management Inc. lifted its position in shares of Service Properties Trust by 18.2% during the fourth quarter. Victory Capital Management Inc. now owns 147,590 shares of the real estate investment trust’s stock worth $1,260,000 after purchasing an additional 22,691 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Service Properties Trust by 3.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 2,798,087 shares of the real estate investment trust’s stock valued at $23,896,000 after buying an additional 91,272 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. raised its position in shares of Service Properties Trust by 8.0% during the fourth quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 104,060 shares of the real estate investment trust’s stock worth $871,000 after acquiring an additional 7,747 shares during the last quarter. Norges Bank acquired a new position in shares of Service Properties Trust during the fourth quarter valued at $9,333,000. Finally, Nomura Asset Management Co. Ltd. boosted its holdings in Service Properties Trust by 1.6% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 188,400 shares of the real estate investment trust’s stock valued at $1,609,000 after acquiring an additional 2,900 shares during the last quarter. Institutional investors and hedge funds own 77.62% of the company’s stock.

About Service Properties Trust

Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with over $11 billion invested in two asset categories: hotels and service-focused retail net lease properties. As of December 31, 2023, SVC owned 221 hotels with over 37,000 guest rooms throughout the United States and in Puerto Rico and Canada, the majority of which are extended stay and select service.