Service Properties Trust (NASDAQ:SVC) Trading Up 12.1% Following Dividend Announcement

Service Properties Trust (NASDAQ:SVC)’s share price was up 12.1% on Tuesday after the company announced a dividend. The stock traded as high as $3.02 and last traded at $3.01. Approximately 1,484,615 shares traded hands during mid-day trading, a decline of 30% from the average daily volume of 2,122,263 shares. The stock had previously closed at $2.68.

The newly announced dividend which will be paid on Thursday, August 14th. Investors of record on Monday, July 21st will be paid a $0.01 dividend. The ex-dividend date of this dividend is Monday, July 21st. This represents a $0.04 annualized dividend and a yield of 1.33%. Service Properties Trust’s payout ratio is currently -2.12%.

Wall Street Analysts Forecast Growth

Separately, B. Riley started coverage on Service Properties Trust in a research report on Tuesday, April 22nd. They issued a “neutral” rating and a $2.00 target price for the company.

Service Properties Trust Trading Up 11.9%

The stock has a market capitalization of $499.92 million, a price-to-earnings ratio of -1.59 and a beta of 1.86. The firm has a 50-day moving average of $2.42 and a 200 day moving average of $2.44. The company has a current ratio of 0.04, a quick ratio of 0.04 and a debt-to-equity ratio of 5.48.

Service Properties Trust (NASDAQ:SVC) last issued its quarterly earnings results on Tuesday, May 6th. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.05 by $0.02. Service Properties Trust had a negative return on equity of 35.59% and a negative net margin of 16.54%. The company had revenue of $435.18 million for the quarter, compared to analysts’ expectations of $433.21 million.

Institutional Trading of Service Properties Trust

Several hedge funds and other institutional investors have recently modified their holdings of SVC. Grandview Asset Management LLC boosted its position in Service Properties Trust by 14.8% during the second quarter. Grandview Asset Management LLC now owns 77,516 shares of the real estate investment trust’s stock valued at $185,000 after purchasing an additional 10,003 shares during the last quarter. Public Employees Retirement System of Ohio boosted its position in Service Properties Trust by 2.1% during the second quarter. Public Employees Retirement System of Ohio now owns 261,809 shares of the real estate investment trust’s stock valued at $626,000 after purchasing an additional 5,457 shares during the last quarter. Strs Ohio acquired a new stake in Service Properties Trust during the first quarter valued at $77,000. IFM Investors Pty Ltd acquired a new stake in Service Properties Trust during the first quarter valued at $100,000. Finally, Smith Asset Management Co. LLC acquired a new stake in Service Properties Trust during the first quarter valued at $49,000. 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.