Service Properties Trust (NASDAQ:SVC) Sees Significant Drop in Short Interest

Service Properties Trust (NASDAQ:SVC) was the target of a significant decline in short interest in the month of July. As of July 15th, there was short interest totaling 4,471,072 shares, a decline of 80.0% from the June 30th total of 22,394,106 shares. Currently, 3.5% of the company’s shares are short sold. Based on an average daily trading volume, of 2,200,641 shares, the short-interest ratio is currently 2.0 days.

Institutional Investors Weigh In On Service Properties Trust

A number of hedge funds have recently added to or reduced their stakes in the company. Yorkville Advisors Global LP bought a new stake in shares of Service Properties Trust during the first quarter valued at approximately $28,333,000. Lonestar Capital Management LLC bought a new position in shares of Service Properties Trust in the 3rd quarter worth $7,412,000. Goldman Sachs Group Inc. lifted 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 worth $10,749,000 after purchasing an additional 2,200,754 shares in the last quarter. Silver Point Capital L.P. grew its position in 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 during the period. Finally, Philosophy Capital Management LLC acquired a new stake in Service Properties Trust in the 3rd quarter valued at $3,838,000. Institutional investors and hedge funds own 77.62% of the company’s stock.

Service Properties Trust Trading Down 0.8%

NASDAQ:SVC opened at $8.46 on Friday. Service Properties Trust has a 12 month low of $5.65 and a 12 month high of $15.20. The company has a current ratio of 0.01, a quick ratio of 0.01 and a debt-to-equity ratio of 4.56. The stock has a market capitalization of $1.10 billion, a price-to-earnings ratio of -1.19 and a beta of 1.65. The firm has a fifty day simple moving average of $8.50 and a two-hundred day simple moving average of $9.08.

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

Service Properties Trust Increases Dividend

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

Analysts Set New Price Targets

Several research analysts have recently weighed in on SVC shares. LADENBURG THALM/SH SH began coverage on Service Properties Trust in a research report on Tuesday, June 30th. They issued a “buy” rating and a $11.25 price objective for the company. Wall Street Zen lowered Service Properties Trust from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. B. Riley Financial raised their target price on Service Properties Trust from $10.00 to $12.50 and gave the stock a “buy” rating in a research note on Wednesday, June 17th. Zacks Research downgraded Service Properties Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 7th. Finally, Weiss Ratings lowered Service Properties Trust from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Tuesday, May 26th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Service Properties Trust currently has a consensus rating of “Hold” and a consensus target price 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.