Service Properties Trust (SVC) Performance and Fundamentals Dashboard tells a completely different story

Service Properties Trust (NASDAQ: SVC) stock fell -7.22% on Friday to $5.91 against a previous-day closing price of $6.37. With 1.74 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.25 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $6.37 whereas the lowest price it dropped to was $5.76. 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 $8.58. With its current market cap of 962.74 million, SVC has annualized dividend of $0.04 while the current yield stands at 0.68%. Beta for the stock currently stands at 2.08.

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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 down-trending over the past week, with a drop of -9.91%, but this was down by -19.26% over a month. Three-month performance surged to 22.36% while six-month performance fell -29.81%. The stock lost -47.14% in the past year, while it has lost -32.76% so far this year. A look at the trailing 12-month EPS for SVC yields -2.23 with Next year EPS estimates of -0.35. For the next quarter, that number is -0.13. This implies an EPS growth rate of -74.70% for this year and 65.30% 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, 164.68 million SVC shares are outstanding with a float of 162.93 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.

Institutional Ownership:

Through their ownership of 82.55% of SVC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.83% of SVC, in contrast to 32.70% held by mutual funds. Shares owned by individuals account for 1.44%. As the largest shareholder in SVC with 15.94% of the stake, The Vanguard Group, Inc. holds 26,320,503 shares worth 26,320,503. A second-largest stockholder of SVC, BlackRock Fund Advisors, holds 25,583,687 shares, controlling over 15.49% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in SVC, holding 10,754,870 shares or 6.51% stake. With a 7.42% stake in SVC, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 12,256,491 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.59% of SVC stock, is the second-largest Mutual Fund holder. It holds 7,578,116 shares valued at 51.83 million. Vanguard Total Stock Market Index holds 3.05% of the stake in SVC, owning 5,030,521 shares worth 34.41 million.

Analysts Ratings:

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 $6.75, the average target price over the next 12 months is $8.58. Based on these targets, SVC could surge 86.13% to reach the target high and rise by 14.21% to reach the target low. Reaching the average price target will result in a growth of 45.18% 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 -$1.01 being high and -$1.01 being low. For SVC, this leads to a yearly average estimate of -$1.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Service Properties Trust surprised analysts by $0.37 when it reported $0.07 EPS against a consensus estimate of -$0.30. The surprise factor in the prior quarter was -$0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.13 and the low estimate is -$0.13. The average estimate for the next quarter is thus -$0.13.

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 $1.27 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 $0.68. In the past year, SVC’s dividend yield has been $0.68, but when looking at the stock over the past five years, its yield has been $7.1. Accordingly, SVC has a current buyback yield of $0.06. This was $0.06 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 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 12 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 71,000 while 14,000 shares were sold.

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