Still A Value Trap? – Service Properties Trust (SVC), Beacon Roofing Supply Inc. (BECN)

Service Properties Trust (NASDAQ:SVC) stock opened at $23.27 in recent trading session and has moved within a range spread between a low of $23.17 and a high of $23.38. When we look at the daily trading volume, traded Service Properties Trust shares reached 1.22 million, slightly higher than its 90-day average trading volume of 869600.0. The company has a market cap of $3.84 billion and its earnings growth for the next 5 years has been projected to rise by 5.00%. SVC stock lost -0.13 on the day to settle at $23.26 with a 2.94% short float and a short ratio of 5.49.

Analysts give Service Properties Trust (SVC) a recommended stock rating of 4.00 to suggest the stock is a great Moderate Buy at the moment. Short term prospects for the stock appear exciting, with the distance to its 20-day simple moving average at -9.14% and the price target is given a consensus estimate of $23.73, about -2.34 down on the current stock price at $23.26. The weekly performance stands at 3.33% higher and -8.06% over the past one month. However, its overall year-to-date performance is down by -2.60% and -12.62% over the last 12 months. If we look at the company’s trailing 12-month price earnings ratio we get 23.05 while the estimated twelve-month trailing earnings per share should shrink -6.40% for the current year. That figure will dwindle in 2020 but reach an average of 5.00% over the next five-year period.

If we break down the company’s shareholders to find out who the top SVC holders are, we note that insiders hold only 2.44% of the shares. The major holders are institutions that hold 40.84% of the company’s shares, specifically spread out among 48 institutional holders. 41.86% of the share float is held by these institutions, of which the top three include are Vanguard Group, Inc. (The), Blackrock Inc. and State Street Corporation. The Vanguard Group, Inc. (The) currently holds 26.52 million shares (about 16.11% of shares outstanding) valued at over $683.91 million as reported last on Sep 29, 2019. Blackrock Inc. and State Street Corporation hold 18.57 million and 8.99 million shares valued at over $478.93 million and $231.81 million respectively. The two company’s shares make up 11.28% and 5.46% of the total Service Properties Trust (SVC) shares outstanding, respectively. The three top holders share value combine to more than $1.39 billion.

Analysts on Wall Street have given the SVC stock a steady of Overweight for the last 3 months, with the current consensus rating among 5 polled analysts putting it at 3.80. 0 analysts have said the stock is a sell or underperform, while only 0 rate it as overweight. A further 3 rate the stock as a Hold, while 2 have rated it as a Buy.

In terms of the stock price, analysts have given the stock a 12-month consensus price target of $23.26, with the low at $23.00 and the high at $30.00. The median price of $26.00 suggests that analysts predict the stock will gain by 10.54% over the year from the last trading price. If the stock climbs to hit the high price target, then the company’s share price would have surged by an impressive 22.47% over the next 12 months. Even hitting the consensus low price we would still see the stock fell -1.13% from its current price level.

Beacon Roofing Supply Inc. (NASDAQ: BECN) is undervalued, analysts say as the stock’s 3.27 rating makes it a Hold. Meanwhile, the stock that has jumped to $28.93 by losing -0.72 in Monday’s market deals, received rating change over the recent past. Raymond James Downgrade the Mkt Perform rating. Deutsche Bank Initiated the stock to Hold and has the BECN stock price target for the year at $39. On September 26, 2019, JP Morgan issued an Downgrade for Beacon Roofing Supply Inc. (NASDAQ:BECN) to Underweight. Analysts, on average, believe could hit $29 per share within one year. The target price suggests that the company shares have a 0.0 downside potential compared to its last price at the close of trade at $29.65 (down -0.02% on day’s opening price on 12/02/19).

So, what do analysts say about a stock that has dropped -8.80% year-to-date? Data shows that 16 analysts observing Beacon Roofing Supply Inc.’s stock have recommended BECN as a Hold. 3 of 16 say it is a buy, while 0 rate the stock as a overweight. The remaining 12 recommend investors Hold. The median price target for the stock is $32.50, with the range between a low of $27.50 and a high of $39.00. Shares outstanding sit at 69.72M while the public float is currently at 54.40M shares.

The average analyst ratings momentum for the stock is 3.27 and has remained 3.33 and 3.33 a month ago and 2 months ago, respectively. We focus on changes in the sentiment portrayed by analysts over a given timeframe to get a pointer regarding the stock’s future price movements. If we look at the stock’s most recent price movements, the SMA20 is at a distance of -12.42% while enlarging that period further brings the SMA50 and SMA200 to -10.98% and -15.97% respectively.

In terms of volatility relative to the latest price change, BECN has a relative strength index (RSI) of 25.86 while the ATR figure stands at 1.07. Over the last week, the stock’s price tumbled only -14.13% although that falls to -6.80% over the month. Investors are encouraged by the positive sales in the quarter over quarter returns that currently stand at 4.90%. Sentiment is however tempered due to the -5.24% in quarter-over-quarter earnings a share. Beacon Roofing Supply Inc. (BECN) has a return on equity ratio of -1.90% according to the company’s trailing 12 month data, while the total return on investment stands at 3.30%. The Industrial Goods company’s gross margin over the year has reached 24.40% while net margin remained -0.50%.