Service Properties Trust (NASDAQ:SVC) Raised to Buy at B. Riley Financial

Service Properties Trust (NASDAQ:SVC) was upgraded by analysts at B. Riley Financial from a “neutral” rating to a “buy” rating in a note issued to investors on Thursday, Marketbeat.com reports. The brokerage presently has a $2.00 price objective on the real estate investment trust’s stock. B. Riley Financial’s target price indicates a potential upside of 57.48% from the stock’s current price.

SVC has been the topic of a number of other research reports. Wall Street Zen upgraded Service Properties Trust from a “sell” rating to a “hold” rating in a research report on Saturday, March 28th. Weiss Ratings reissued a “sell (d-)” rating on shares of Service Properties Trust in a research report on Thursday, January 22nd. Zacks Research downgraded Service Properties Trust from a “strong-buy” rating to a “hold” rating in a research note on Friday, January 30th. Finally, Wells Fargo & Company cut their price target on Service Properties Trust from $2.50 to $2.00 and set an “equal weight” rating on the stock in a research report on Thursday, January 22nd. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Service Properties Trust has an average rating of “Hold” and an average target price of $2.00.

Service Properties Trust Price Performance

Shares of NASDAQ:SVC opened at $1.27 on Thursday. The firm has a 50 day simple moving average of $2.03 and a 200-day simple moving average of $2.08. Service Properties Trust has a twelve month low of $1.13 and a twelve month high of $3.08. The company has a current ratio of 0.14, a quick ratio of 0.14 and a debt-to-equity ratio of 5.00. The company has a market capitalization of $213.44 million, a PE ratio of -1.05 and a beta of 1.60.

Service Properties Trust (NASDAQ:SVC) last posted its earnings results on Wednesday, February 25th. The real estate investment trust reported $0.17 EPS for the quarter, beating analysts’ consensus estimates of $0.01 by $0.16. Service Properties Trust had a negative net margin of 11.15% and a negative return on equity of 29.70%. The firm had revenue of $397.45 million for the quarter, compared to the consensus estimate of $394.32 million. Service Properties Trust has set its FY 2026 guidance at 0.650-0.770 EPS.

Insider Buying and Selling

In related news, CEO Christopher J. Bilotto acquired 100,000 shares of the firm’s stock in a transaction on Thursday, April 2nd. The stock was bought at an average cost of $1.20 per share, with a total value of $120,000.00. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Brian E. Donley bought 55,000 shares of the stock in a transaction on Thursday, April 2nd. The stock was bought at an average price of $1.20 per share, for a total transaction of $66,000.00. The SEC filing for this purchase provides additional information. In the last ninety days, insiders bought 41,821,666 shares of company stock worth $50,185,999. Corporate insiders own 1.43% of the company’s stock.

Institutional Investors Weigh In On Service Properties Trust

Hedge funds have recently modified their holdings of the stock. Tudor Investment Corp ET AL lifted its stake in shares of Service Properties Trust by 183.7% in the 4th quarter. Tudor Investment Corp ET AL now owns 568,635 shares of the real estate investment trust’s stock worth $1,046,000 after acquiring an additional 368,183 shares during the period. Readystate Asset Management LP increased its stake in shares of Service Properties Trust by 49.1% during the fourth quarter. Readystate Asset Management LP now owns 3,397,015 shares of the real estate investment trust’s stock worth $6,251,000 after acquiring an additional 1,119,181 shares during the period. Millennium Management LLC raised its holdings in Service Properties Trust by 101.6% during the fourth quarter. Millennium Management LLC now owns 1,109,625 shares of the real estate investment trust’s stock worth $2,042,000 after purchasing an additional 559,312 shares in the last quarter. Inspire Investing LLC lifted its position in Service Properties Trust by 52.6% in the fourth quarter. Inspire Investing LLC now owns 259,325 shares of the real estate investment trust’s stock valued at $477,000 after purchasing an additional 89,368 shares during the period. Finally, AQR Capital Management LLC lifted its position in Service Properties Trust by 40.5% in the fourth quarter. AQR Capital Management LLC now owns 1,334,104 shares of the real estate investment trust’s stock valued at $2,455,000 after purchasing an additional 384,375 shares during the period. 77.62% of the stock is owned by institutional investors and hedge funds.

Service Properties Trust News Summary

Here are the key news stories impacting Service Properties Trust this week:

• Positive Sentiment: Large insider purchases by management — Director Adam D. Portnoy, CEO Christopher J. Bilotto and CFO Brian E. Donley bought substantial blocks at $1.20, signaling confidence or support for the financing and reducing perceived information asymmetry. Read More. Read More. Read More.
• Positive Sentiment: Analyst upgrade — B. Riley raised SVC from “neutral” to “buy” with a $2.00 price target, which can attract buyers and improve sentiment given the low current price. Read More.
• Neutral Sentiment: Financing timeline and pricing — The company previously announced pricing of a large offering at $1.20/share; today’s close of the deal simply completes that planned capital raise. Investors should view this as execution of a financing plan rather than a surprise. Read More.
• Negative Sentiment: Large dilutive equity raise closed — SVC closed an underwritten offering of 479.2 million shares (including full overallotment) at $1.20, materially increasing float and diluting existing holders; this explains the sharp rise in volume and puts near-term downward pressure on the per‑share value. Read More.
• Negative Sentiment: Balance-sheet and leverage concerns persist — SVC’s high debt load and previously flagged maturity/credit risks mean investors will watch how proceeds are used (debt paydown vs. capex), and uncertainty on that can keep pressure on the multiple. Read More.

Service Properties Trust Company Profile

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.