Service Properties Trust (NASDAQ: SVC) stock jumped 5.49% on Friday to $6.73 against a previous-day closing price of $6.38. With 1.39 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.76 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $6.90 whereas the lowest price it dropped to was $6.36. The 52-week range on SVC shows that it touched its highest point at $12.23 and its lowest point at $4.65 during that stretch. It currently has a 1-year price target of $8.42. With its current market cap of 1.08 billion, SVC has annualized dividend of $0.04 while the current yield stands at 0.59%. Beta for the stock currently stands at 2.15.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SVC was up-trending over the past week, with a rise of 5.65%, but this was up by 23.26% over a month. Three-month performance dropped to -14.92% while six-month performance fell -23.52%. The stock lost -39.59% in the past year, while it has lost -23.44% so far this year. A look at the trailing 12-month EPS for SVC yields -2.85 with Next year EPS estimates of -0.58. For the next quarter, that number is -0.33. This implies an EPS growth rate of -74.70% for this year and 55.60% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -35.40%.
Float and Shares Shorts:
At present, 164.67 million SVC shares are outstanding with a float of 162.88 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.79 million, which was 2.90% higher than short shares on Jun 14, 2022. In addition to Mr. Todd W. Hargreaves as the firm’s Pres & Chief Investment Officer, Mr. Brian E. Donley serves as its CFO & Treasurer.
Through their ownership of 82.55% of SVC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.67% of SVC, in contrast to 36.52% held by mutual funds. Shares owned by individuals account for 1.41%. As the largest shareholder in SVC with 15.69% of the stake, BlackRock Fund Advisors holds 25,903,698 shares worth 25,903,698. A second-largest stockholder of SVC, The Vanguard Group, Inc., holds 25,402,256 shares, controlling over 15.39% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SVC, holding 10,852,926 shares or 6.57% stake. With a 6.95% stake in SVC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 11,478,128 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.60% of SVC stock, is the second-largest Mutual Fund holder. It holds 7,601,360 shares valued at 39.76 million. Vanguard Total Stock Market Index holds 2.98% of the stake in SVC, owning 4,911,327 shares worth 25.69 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SVC since 4 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With SVC analysts setting a high price target of $11.00 and a low target of $6.25, the average target price over the next 12 months is $8.42. Based on these targets, SVC could surge 63.45% to reach the target high and fall by -7.13% to reach the target low. Reaching the average price target will result in a growth of 25.11% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. SVC will report FY 2022 earnings on 03/01/2023. Analysts have provided yearly estimates in a range of -$1.48 being high and -$1.48 being low. For SVC, this leads to a yearly average estimate of -$1.48. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Service Properties Trust surprised analysts by -$0.12 when it reported -$0.66 EPS against a consensus estimate of -$0.54. The surprise factor in the prior quarter was -$0.00. Based on analyst estimates, the high estimate for the next quarter is -$0.30 and the low estimate is -$0.30. The average estimate for the next quarter is thus -$0.30.
Dividends & Yield:
In terms of dividends, SVC has a current ratio of $0.04, which is $0.04 over the trailing 12-months, while a dividend of $1.35 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and SVC currently yields $0.59. In the past year, SVC’s dividend yield has been $0.59, but when looking at the stock over the past five years, its yield has been $7.44. Accordingly, SVC has a current buyback yield of $0.07. This was $0.07 for the TTM, and it was $0.03 for the past five years.
Summary of Insider Activity:
Insiders traded SVC stock several times over the past three months with 11 Buys and 2 Sells. In these transactions, 69,000 shares were bought while 14,000 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 121,000 while 27,005 shares were sold.