Service Properties Trust Target of Unusually High Options Trading (NASDAQ:SVC)

Service Properties Trust (NASDAQ:SVC) saw some unusual options trading activity on Friday. Investors purchased 2,400 put options on the stock. This represents an increase of 547% compared to the typical volume of 371 put options.

Institutional Investors Weigh In On Service Properties Trust

A number of institutional investors have recently added to or reduced their stakes in the stock. CIBC Bancorp USA Inc. bought a new position in shares of Service Properties Trust in the 3rd quarter valued at about $45,000. Caxton Associates LLP purchased a new stake in Service Properties Trust during the third quarter valued at approximately $33,000. Varde Management L.P. bought a new stake in shares of Service Properties Trust in the 3rd quarter valued at approximately $3,695,000. Susquehanna Advisors Group Inc. boosted its holdings in shares of Service Properties Trust by 9.0% in the 3rd quarter. Susquehanna Advisors Group Inc. now owns 5,121,419 shares of the real estate investment trust’s stock worth $13,879,000 after purchasing an additional 420,946 shares during the period. Finally, Bank of America Corp DE increased its position in shares of Service Properties Trust by 158.9% during the 3rd quarter. Bank of America Corp DE now owns 1,166,131 shares of the real estate investment trust’s stock valued at $3,160,000 after purchasing an additional 715,770 shares during the last quarter. 77.62% of the stock is owned by hedge funds and other institutional investors.

Service Properties Trust Stock Up 1.2%

SVC opened at $1.75 on Friday. The stock has a market cap of $294.16 million, a price-to-earnings ratio of -1.05 and a beta of 1.47. The company has a debt-to-equity ratio of 5.68, a quick ratio of 0.17 and a current ratio of 0.17. The firm’s fifty day moving average is $1.90 and its 200 day moving average is $2.37. Service Properties Trust has a fifty-two week low of $1.55 and a fifty-two week high of $3.08.

Service Properties Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 13th. Investors of record on Monday, October 27th were issued a $0.01 dividend. The ex-dividend date of this dividend was Monday, October 27th. This represents a $0.04 dividend on an annualized basis and a yield of 2.3%. Service Properties Trust’s payout ratio is currently -2.40%.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the stock. Wells Fargo & Company upgraded shares of Service Properties Trust to a “hold” rating in a research note on Friday, October 3rd. B. Riley restated a “neutral” rating and issued a $3.00 price objective (up from $2.00) on shares of Service Properties Trust in a research note on Thursday, September 25th. Zacks Research upgraded Service Properties Trust from a “strong sell” rating to a “hold” rating in a research report on Tuesday, November 11th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Service Properties Trust in a report on Wednesday, October 8th. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Reduce” and an average price target of $2.75.

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.