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

B. Riley Financial upgraded shares of Service Properties Trust (NASDAQ:SVC) from a neutral rating to a buy rating in a research report report published on Thursday, MarketBeat.com reports. B. Riley Financial currently has $2.00 price objective on the real estate investment trust’s stock.

A number of other research firms have also recently commented on SVC. Zacks Research cut Service Properties Trust from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Wall Street Zen upgraded Service Properties Trust from a “sell” rating to a “hold” rating in a research note on Saturday, March 28th. Wells Fargo & Company cut their price objective on Service Properties Trust from $2.50 to $2.00 and set an “equal weight” rating for the company in a research report on Thursday, January 22nd. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Service Properties Trust in a research note on Thursday, January 22nd. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $2.00.

Service Properties Trust Stock Performance

NASDAQ SVC opened at $1.27 on Thursday. The firm has a market capitalization of $213.44 million, a P/E ratio of -1.05 and a beta of 1.60. 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 firm’s fifty day moving average price is $2.05 and its two-hundred day moving average price is $2.09. Service Properties Trust has a 1 year low of $1.13 and a 1 year high of $3.08.

Service Properties Trust (NASDAQ:SVC) last announced its quarterly earnings data 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. The company had revenue of $397.45 million during the quarter, compared to the consensus estimate of $394.32 million. Service Properties Trust had a negative net margin of 11.15% and a negative return on equity of 29.70%. Service Properties Trust has set its FY 2026 guidance at 0.650-0.770 EPS.

Service Properties Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Thursday, February 19th. Investors of record on Monday, January 26th were paid a $0.01 dividend. The ex-dividend date was Monday, January 26th. This represents a $0.04 dividend on an annualized basis and a yield of 3.1%. Service Properties Trust’s dividend payout ratio is -3.31%.

Insider Activity at Service Properties Trust

In other news, CEO Christopher J. Bilotto acquired 100,000 shares of Service Properties Trust stock in a transaction dated Thursday, April 2nd. The stock was bought at an average price of $1.20 per share, for a total transaction of $120,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Brian E. Donley bought 55,000 shares of the firm’s stock in a transaction dated Thursday, April 2nd. The stock was purchased at an average cost of $1.20 per share, for a total transaction of $66,000.00. Additional details regarding this purchase are available in the official SEC disclosure. Insiders bought 41,821,666 shares of company stock valued at $50,185,999 in the last 90 days. Insiders own 1.43% of the company’s stock.

Institutional Trading of Service Properties Trust

Several institutional investors have recently added to or reduced their stakes in the company. HighRoad Wealth Advisors LLC acquired a new position in Service Properties Trust in the 4th quarter valued at $29,000. Abel Hall LLC acquired a new stake in shares of Service Properties Trust during the fourth quarter worth $32,000. Caxton Associates LLP acquired a new stake in shares of Service Properties Trust during the third quarter worth $33,000. BNP Paribas Financial Markets boosted its position in shares of Service Properties Trust by 54.4% in the second quarter. BNP Paribas Financial Markets now owns 14,470 shares of the real estate investment trust’s stock valued at $35,000 after acquiring an additional 5,099 shares during the period. Finally, Savant Capital LLC acquired a new position in shares of Service Properties Trust in the third quarter valued at about $37,000. 77.62% of the stock is currently owned by institutional investors.

Service Properties Trust News Summary

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

• Positive Sentiment: Large insider purchases — Director Adam D. Portnoy bought 41,666,666 shares at $1.20 (about $50M), CEO Christopher J. Bilotto bought 100,000 shares at $1.20, and CFO Brian E. Donley bought 55,000 shares at $1.20. Insider buying at the offering price signals management confidence or support for the financing. Portnoy SEC Filing CEO Filing CFO Filing
• Positive Sentiment: Analyst upgrade — B. Riley upgraded SVC from “neutral” to “buy” and set a $2.00 price target (~57.5% upside vs. current levels). Analyst support can attract buyers and improve sentiment. B. Riley Upgrade
• Neutral Sentiment: Upcoming/recap financing activity — The company previously announced pricing of 416.7M shares at $1.20 (gross proceeds ~$500M) with settlement expected around April 2. That pricing notice foreshadowed the larger close reported today. Pricing Announcement
• Negative Sentiment: Large dilutive equity raise closed — SVC announced the closing of an underwritten offering of 479.2 million common shares (including a full 62.5M share overallotment) at $1.20/share. The transaction materially increases share count and will be dilutive to existing holders; the company said net proceeds were approximately (see release). Heavy dilution and added float explain the surge in volume and put near-term pressure on the stock despite insider participation. Offering Close
• Negative Sentiment: Ongoing balance-sheet concerns — Recent analysis flags SVC’s elevated leverage and the challenges of navigating its debt profile; investors should weigh cash reuse, debt maturities and how the equity raise is allocated before reassessing credit risk. Debt Analysis

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.