Choice Hotels International (NYSE:CHH) Now Covered by Analysts at Freedom Broker

Key Points

• Freedom Broker initiated coverage of Choice Hotels International with a “buy” rating and a $117 price target, implying roughly 13.5% upside from the reported $103.06 share price.
• Analyst sentiment remains mixed: three analysts rate the stock a Buy, nine rate it Hold and three rate it Sell, resulting in a consensus “Hold” rating and an average price target of $113.08.
• Choice Hotels exceeded quarterly expectations, reporting $2.02 in EPS and $440.76 million in revenue, while projecting fiscal 2026 EPS of $6.86–$7.10.

Freedom Broker started coverage on shares of Choice Hotels International (NYSE:CHH - Get Free Report) in a research report issued to clients and investors on Wednesday, Benzinga reports. The firm set a "buy" rating and a $117.00 price target on the stock. Freedom Broker's price target indicates a potential upside of 13.53% from the company's current price.

Several other brokerages have also recently commented on CHH. Susquehanna boosted their price target on shares of Choice Hotels International from $110.00 to $115.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. UBS Group raised their price objective on Choice Hotels International from $119.00 to $120.00 and gave the company a "neutral" rating in a research report on Friday, August 28th. Wells Fargo & Company lifted their target price on Choice Hotels International from $98.00 to $99.00 and gave the stock an "underweight" rating in a report on Thursday, July 16th. Mizuho assumed coverage on Choice Hotels International in a report on Thursday, August 27th. They issued a "neutral" rating and a $106.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $124.00 target price on shares of Choice Hotels International in a research report on Thursday, August 6th. Three analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $113.08.

Choice Hotels International Price Performance

CHH stock traded down $0.82 during midday trading on Wednesday, hitting $103.06. The company's stock had a trading volume of 181,003 shares, compared to its average volume of 625,731. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $123.82. The company has a quick ratio of 0.93, a current ratio of 0.93 and a debt-to-equity ratio of 14.08. The firm has a market capitalization of $4.64 billion, a price-to-earnings ratio of 14.56, a price-to-earnings-growth ratio of 2.61 and a beta of 0.71. The company has a 50 day moving average of $103.28 and a two-hundred day moving average of $107.93.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.97 by $0.05. Choice Hotels International had a net margin of 20.28% and a return on equity of 205.69%. The firm had revenue of $440.76 million for the quarter, compared to analysts' expectations of $436.48 million. During the same quarter last year, the business posted $1.92 earnings per share. The company's revenue for the quarter was up 3.4% compared to the same quarter last year. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS. On average, analysts expect that Choice Hotels International will post 6.97 EPS for the current year.

Insiders Place Their Bets

In related news, Director William Jews sold 5,057 shares of the company's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $106.98, for a total transaction of $540,997.86. Following the sale, the director owned 23,987 shares of the company's stock, valued at $2,566,129.26. This represents a 17.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Corporate insiders own 23.87% of the company's stock.

Hedge Funds Weigh In On Choice Hotels International

A number of institutional investors and hedge funds have recently made changes to their positions in CHH. Wellington Management Group LLP lifted its stake in shares of Choice Hotels International by 1.7% in the 2nd quarter. Wellington Management Group LLP now owns 669,693 shares of the company's stock valued at $73,847,000 after purchasing an additional 11,366 shares during the last quarter. SummitTX Capital L.P. increased its position in shares of Choice Hotels International by 247.3% during the 1st quarter. SummitTX Capital L.P. now owns 125,122 shares of the company's stock valued at $12,950,000 after purchasing an additional 89,096 shares during the last quarter. Heartland Advisors Inc. bought a new position in shares of Choice Hotels International during the 1st quarter valued at approximately $6,452,000. Alyeska Investment Group L.P. bought a new position in shares of Choice Hotels International during the 2nd quarter valued at approximately $8,380,000. Finally, ABS Direct Equity Fund LLC purchased a new stake in Choice Hotels International during the 1st quarter valued at $2,605,000. 65.57% of the stock is owned by hedge funds and other institutional investors.

About Choice Hotels International

Choice Hotels International, Inc is a hospitality company that franchises and manages a broad portfolio of hotels and lodging properties. Its brand portfolio spans economy, midscale, upscale and extended-stay segments, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn, Cambria Hotels, Ascend Hotel Collection, MainStay Suites, Suburban Studios, Everhome Suites and WoodSpring Suites.

The company primarily supports independent hotel owners and franchisees through brand standards, reservations, marketing, technology, loyalty programs and operational resources.

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