Handle With Care: Service Properties Trust (NASDAQ: SVC)


    SSgA Funds Management, Inc. recently announced the acquisition of new stake in Service Properties Trust (NASDAQ:SVC). The institutional investor has increased its shareholding in the Real Estate company by 7.10% to 9.32 million shares with purchase of 0.62 million shares. This fresh investment now brings its stake to 5.66% valued currently at $62.42 million. In addition, Northern Trust Investments, Inc.(.. raised its holdings by 0.96 million to 3.57 million shares. And Geode Capital Management LLC has lifted its position by 14.54% or 0.45 million shares – to 3.51 million shares.

    With over 1.7 million Service Properties Trust (SVC) shares trading Friday and a closing price of $8.76 on the day, the dollar volume was approximately $14.9 million. The shares have shown a positive weekly performance of 13.62% and its price on 08/28/20 gained nearly 2.88%. Currently, there are 164.38M common shares owned by the public and among those 162.44M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 3 analysts who have offered their price forecasts for SVC have a consensus price objective of $11.33. The analysts have set the share’s price value over the next 12 months at a high of $14.00 and a low of $9.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Service Properties Trust stock is 2.00 for the next 12 months. The average price target is 30.86% above its last price level and an upside to the estimated low will see the stock gain 2.67% over that period. But an upside of 37.43% will see the stock hit the forecast high price target while mean target price for the stock is $11.00.

    Insiders at the company have transacted a total of 19 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 14 of these insider trades were purchases, accounting for 77,500 shares. Insider sales of the common stock occurred on 5 occasions, with total insider shares sold totaling 15,577 shares.

    The top 3 mutual fund holders in Service Properties Trust are Vanguard Real Estate Index Fund, Vanguard Total Stock Market Index, and iShares Core S&P Mid Cap ETF. Vanguard Real Estate Index Fund owns 7.33 million shares of the company’s stock, all valued at over $49.11 million. The company sold 36246.0 shares recently to bring their total holdings to about 4.45% of the shares outstanding. Vanguard Total Stock Market Index sold 3156.0 shares to see its total holdings shrink to 4.62 million shares valued at over $30.97 million and representing 2.81% of the shares outstanding. iShares Core S&P Mid Cap ETF sold 68094.0 shares to bring its total holdings to over 4.35 million shares at a value of $29.17 million. iShares Core S&P Mid Cap ETF now owns shares totaling to 2.65% of the shares outstanding.

    Shares of Service Properties Trust (NASDAQ: SVC) opened at $8.61, up $0.09 from a prior closing price of $8.52. However, the script later closed the day at $8.76, up 2.88%. The company’s stock has a 5-day price change of 13.62% and 20.00% over the past three months. SVC shares are trading -64.00% year to date (YTD), with the 12-month market performance down to -63.08% lower. It has a 12-month low price of $3.59 and touched a high of $26.28 over the same period. Currently, 1.7 million shares have been traded, compared to an average intraday trading volume of 2.73 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 11.10%, 18.63%, and -33.94% respectively.

    Institutional ownership of Service Properties Trust (NASDAQ: SVC) shares accounts for 74.00% of the company’s 164.38M shares outstanding. Mutual fund holders own 34.09%, while other institutional holders and individual stakeholders account for 39.44% and 1.25% respectively.

    It has a market capitalization of $1.40B and a beta (3y monthly) value of 2.04. The earnings-per-share (ttm) stands at -$0.28. The company has a debt-to-equity ratio at 2.63. Price movements for the stock have been influenced by the stock’s volatility, which stands at 7.61% over the week and 7.07% over the month.

    Analysts forecast that Service Properties Trust (SVC) will achieve an EPS of -$0.37 for the current quarter, -$0.32 for the next quarter and -$0.51 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.37 while analysts give the company a high EPS estimate of -$0.37. Comparatively, EPS for the current quarter was $0.24 a year ago. Earnings per share for the fiscal year are expected to increase by 39.80%, and 73.70% over the next financial year. EPS should shrink at an annualized rate of 5.00% over the next five years, compared to 6.10% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 3 brokerage firm advisors rate Service Properties Trust (SVC) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 1 of the 3 advise that investors “hold,” and 0 rated it as a “Sell.”


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