Service Properties Trust (NASDAQ:SVC) Shares Gap Up – Still a Buy?

Service Properties Trust (NASDAQ:SVC)’s share price gapped up before the market opened on Wednesday . The stock had previously closed at $2.49, but opened at $2.70. Service Properties Trust shares last traded at $3.04, with a volume of 3,883,911 shares traded.

Analyst Ratings Changes

Separately, Wells Fargo & Company raised Service Properties Trust from an “underweight” rating to an “overweight” rating and upped their price target for the company from $2.50 to $4.00 in a report on Wednesday.

Service Properties Trust Price Performance

The stock has a fifty day moving average of $2.70 and a 200-day moving average of $3.23. The company has a quick ratio of 0.03, a current ratio of 0.03 and a debt-to-equity ratio of 4.32. The stock has a market capitalization of $497.41 million, a price-to-earnings ratio of -2.04 and a beta of 2.20.

Service Properties Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, February 20th. Investors of record on Monday, January 27th were issued a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.34%. The ex-dividend date of this dividend was Monday, January 27th. Service Properties Trust’s dividend payout ratio (DPR) is -2.40%.

Institutional Investors Weigh In On Service Properties Trust

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SVC. Quadrant Capital Group LLC lifted its stake in Service Properties Trust by 87.1% in the fourth quarter. Quadrant Capital Group LLC now owns 10,616 shares of the real estate investment trust’s stock valued at $27,000 after buying an additional 4,942 shares during the last quarter. Tidal Investments LLC purchased a new stake in Service Properties Trust in the fourth quarter valued at approximately $33,000. Cibc World Markets Corp purchased a new stake in Service Properties Trust in the fourth quarter valued at approximately $39,000. Corient Private Wealth LLC purchased a new stake in Service Properties Trust in the fourth quarter valued at approximately $41,000. Finally, Boothbay Fund Management LLC purchased a new stake in Service Properties Trust in the fourth quarter valued at approximately $48,000. Hedge funds and other institutional investors own 77.62% of the company’s stock.

Service Properties Trust Company Profile

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.