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

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

Service Properties Trust Stock Performance

SVC traded up $0.57 during trading hours on Thursday, hitting $8.45. The company’s stock had a trading volume of 3,451,092 shares, compared to its average volume of 1,569,270. Service Properties Trust has a fifty-two week low of $5.65 and a fifty-two week high of $15.05. 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 firm has a market capitalization of $1.09 billion, a PE ratio of -1.19 and a beta of 1.67. The company has a 50-day simple moving average of $8.42 and a 200 day simple moving average of $8.93.

Service Properties Trust Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts recently issued reports on SVC shares. B. Riley Financial upped 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. Zacks Research cut shares of Service Properties Trust from a “hold” rating to a “strong sell” rating in a report on Tuesday, July 7th. Odeon Capital Group started coverage on shares of Service Properties Trust in a research report on Friday, May 8th. They issued a “buy” rating and a $17.50 price target on the stock. Wall Street Zen downgraded shares of Service Properties Trust from a “hold” rating to a “sell” rating in a research report on Saturday, May 9th. Finally, LADENBURG THALM/SH SH began coverage on shares of Service Properties Trust in a research report on Tuesday, June 30th. They set a “buy” rating and a $11.25 price objective for the company. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $12.81.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets lifted its position in 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 worth $35,000 after buying an additional 5,099 shares in the last quarter. Cerity Partners LLC grew its holdings in shares of Service Properties Trust by 40.2% during the 2nd quarter. Cerity Partners LLC now owns 29,838 shares of the real estate investment trust’s stock valued at $71,000 after acquiring an additional 8,554 shares in the last quarter. Jain Global LLC grew its holdings in shares of Service Properties Trust by 37.8% during the 4th quarter. Jain Global LLC now owns 34,638 shares of the real estate investment trust’s stock valued at $64,000 after acquiring an additional 9,500 shares in the last quarter. Renaissance Technologies LLC grew its holdings in shares of Service Properties Trust by 10.9% during the 4th quarter. Renaissance Technologies LLC now owns 122,400 shares of the real estate investment trust’s stock valued at $225,000 after acquiring an additional 12,000 shares in the last quarter. Finally, Russell Investments Group Ltd. increased its stake in shares of Service Properties Trust by 98.9% in the third quarter. Russell Investments Group Ltd. now owns 24,150 shares of the real estate investment trust’s stock worth $65,000 after acquiring an additional 12,006 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 (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.