Service Properties Trust (NASDAQ:SVC) Shares Gap Up – Still a Buy?

Shares of Service Properties Trust (NASDAQ:SVC) gapped up before the market opened on Wednesday . The stock had previously closed at $2.49, but opened at $2.70. Service Properties Trust shares last traded at $3.04, with a volume of 3,883,911 shares traded.

Analysts Set New Price Targets

Separately, Wells Fargo & Company upgraded Service Properties Trust from an “underweight” rating to an “overweight” rating and upped their target price for the stock from $2.50 to $4.00 in a report on Wednesday.

Service Properties Trust Price Performance

The firm has a market capitalization of $468.25 million, a P/E ratio of -1.91 and a beta of 2.20. The company has a debt-to-equity ratio of 4.32, a quick ratio of 0.03 and a current ratio of 0.03. The firm has a 50-day moving average of $2.72 and a 200-day moving average of $3.22.

Service Properties Trust Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, February 20th. Stockholders of record on Monday, January 27th were issued a dividend of $0.01 per share. The ex-dividend date of this dividend was Monday, January 27th. This represents a $0.04 annualized dividend and a dividend yield of 1.42%. Service Properties Trust’s payout ratio is -2.40%.

Hedge Funds Weigh In On Service Properties Trust

Several hedge funds and other institutional investors have recently modified their holdings of the company. Quadrant Capital Group LLC increased its stake in shares of Service Properties Trust by 87.1% in the 4th quarter. Quadrant Capital Group LLC now owns 10,616 shares of the real estate investment trust’s stock worth $27,000 after purchasing an additional 4,942 shares in the last quarter. Wolverine Trading LLC purchased a new stake in shares of Service Properties Trust in the 3rd quarter worth $58,000. Walleye Capital LLC purchased a new stake in shares of Service Properties Trust in the 3rd quarter worth $58,000. Tidal Investments LLC purchased a new stake in shares of Service Properties Trust in the 4th quarter worth $33,000. Finally, Cibc World Markets Corp purchased a new stake in shares of Service Properties Trust in the 4th quarter worth $39,000. 77.62% of the stock is owned by institutional investors.

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.