SEVN:NASDAQSeven Hills Realty Trust Analysis
Data as of 2026-04-30 - not real-time
$8.07
Latest Price
6/10Risk
Risk Level: Medium
Executive Summary
Seven Hills Realty Trust is trading at $8.07, well below its 20‑day (≈$8.24), 50‑day (≈$8.38) and 200‑day (≈$9.41) moving averages, signaling a bearish technical backdrop. The RSI sits around 42, hinting at a neutral‑to‑slightly‑oversold condition, while the MACD line is under the signal line, confirming downward momentum. Volume is picking up and 30‑day volatility exceeds 20%, yet the stock’s beta is modest (~0.6), suggesting limited market‑wide swings. Market sentiment is unusually optimistic, with the Fear & Greed Index at 88.6 (“Extreme Greed”).
Fundamentally, SEVN appears cheap – its trailing P/E of roughly 9 is far below the industry average of 33, and the price‑to‑book ratio of 0.55 indicates a deep discount to net asset value. The dividend yield is eye‑catching at about 13.7%, but the payout ratio exceeds 120%, raising sustainability concerns. The balance sheet is leveraged (debt‑to‑equity > 140%) despite a solid cash cushion, and analysts have issued a “strong buy” with a median target near $10, implying ~30% upside.
Fundamentally, SEVN appears cheap – its trailing P/E of roughly 9 is far below the industry average of 33, and the price‑to‑book ratio of 0.55 indicates a deep discount to net asset value. The dividend yield is eye‑catching at about 13.7%, but the payout ratio exceeds 120%, raising sustainability concerns. The balance sheet is leveraged (debt‑to‑equity > 140%) despite a solid cash cushion, and analysts have issued a “strong buy” with a median target near $10, implying ~30% upside.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish technical indicators (price below all SMAs, MACD bearish)
- Upcoming dividend distribution provides near‑term income
- Support level around $7.90 limits downside
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Significant valuation discount (low P/E, low P/B)
- Analyst consensus strong buy with target median $10
- High dividend yield despite sustainability concerns
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- Elevated leverage and debt‑to‑equity ratio
- Potential interest‑rate sensitivity of mortgage REITs
- Uncertain dividend sustainability given >100% payout ratio
Key Metrics & Analysis
Financial Health
Revenue Growth-24.60%
Profit Margin52.89%
P/E Ratio9.0
ROE5.16%
ROA2.04%
Debt/Equity148.38
P/B Ratio0.6
Op. Cash Flow$15.0M
Industry P/E33.3
Technical Analysis
TrendBearish
RSI41.6
Support$7.90
Resistance$8.64
MA 20$8.24
MA 50$8.38
MA 200$9.41
MACDBearish
VolumeIncreasing
Fear & Greed Index88.57
Valuation
Target Price$10.50
Upside/Downside30.11%
GradeUndervalued
TypeValue
Dividend Yield13.66%
Risk Assessment
Beta0.59
Volatility21.64%
Sector RiskMedium
Reg. RiskLow
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.