Choice Hotels International (NYSE:CHH) Stock Gets Price Target Increase from Freedom Broker

Key Points

• Freedom Broker raised its Choice Hotels price target from $117 to $130 but maintained a “hold” rating, implying 10.26% upside from the current share price.
• Analyst sentiment remains cautious overall: MarketBeat reports a consensus “Reduce” rating and average price target of $115.79, with 10 analysts at Hold, three at Sell, and two at Buy.
• Choice Hotels beat quarterly expectations, reporting EPS of $2.33 versus $2.29 forecast and revenue of $458.33 million versus $447.56 million expected; revenue increased 2.5% year over year.

Choice Hotels International (NYSE:CHH - Get Free Report) had its price target lifted by Freedom Broker from $117.00 to $130.00 in a report released on Thursday, Benzinga reports. The firm presently has a "hold" rating on the stock. Freedom Broker's price objective would indicate a potential upside of 10.26% from the company's current price.

Other research analysts also recently issued research reports about the company. JPMorgan Chase & Co. increased their price target on Choice Hotels International from $119.00 to $121.00 and gave the company a "neutral" rating in a research note on Wednesday, October 21st. Mizuho began coverage on Choice Hotels International in a research note on Thursday, August 27th. They set a "neutral" rating and a $106.00 price objective for the company. Wells Fargo & Company upped their price objective on Choice Hotels International from $97.00 to $98.00 and gave the company an "underweight" rating in a report on Monday, October 19th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $124.00 price objective on shares of Choice Hotels International in a research note on Thursday, August 6th. Finally, Truist Financial upped their target price on shares of Choice Hotels International from $128.00 to $129.00 and gave the company a "buy" rating in a research note on Thursday, September 10th. Two investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $115.79.

Choice Hotels International Trading Down 2.0%

CHH opened at $117.90 on Thursday. The firm has a 50 day simple moving average of $104.97 and a 200 day simple moving average of $107.32. Choice Hotels International has a fifty-two week low of $84.04 and a fifty-two week high of $123.82. The company has a market cap of $5.25 billion, a price-to-earnings ratio of 26.20, a price-to-earnings-growth ratio of 2.76 and a beta of 0.65. The company has a debt-to-equity ratio of 16.52, a current ratio of 1.26 and a quick ratio of 0.93.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its quarterly earnings data on Monday, November 2nd. The company reported $2.33 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.29 by $0.04. Choice Hotels International had a net margin of 12.65% and a return on equity of 216.71%. The firm had revenue of $458.33 million for the quarter, compared to analysts' expectations of $447.56 million. During the same period last year, the firm earned $2.10 earnings per share. The business's revenue for the quarter was up 2.5% on a year-over-year basis. On average, sell-side analysts anticipate that Choice Hotels International will post 6.94 earnings per share for the current year.

Insider Transactions at Choice Hotels International

In related news, CEO Dominic Dragisich sold 1,227 shares of the firm's stock in a transaction on Tuesday, October 20th. The shares were sold at an average price of $112.00, for a total transaction of $137,424.00. Following the sale, the chief executive officer directly owned 90,055 shares in the company, valued at $10,086,160. This trade represents a 1.34% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director William L. Jews sold 5,057 shares of the business'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 completion of the sale, the director directly owned 23,987 shares in the company, valued at $2,566,129.26. This represents a 17.41% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 8,284 shares of company stock valued at $919,122 over the last quarter. Corporate insiders own 23.87% of the company's stock.

Hedge Funds Weigh In On Choice Hotels International

A number of large investors have recently added to or reduced their stakes in the company. Retirement Systems of Alabama boosted its holdings in Choice Hotels International by 3.0% during the third quarter. Retirement Systems of Alabama now owns 21,629 shares of the company's stock worth $2,215,000 after purchasing an additional 636 shares during the last quarter. Fulcrum Asset Management LLP acquired a new stake in Choice Hotels International in the 3rd quarter valued at $210,000. Commonwealth Equity Services LLC increased its stake in Choice Hotels International by 2.2% in the 3rd quarter. Commonwealth Equity Services LLC now owns 14,435 shares of the company's stock valued at $1,478,000 after buying an additional 313 shares during the last quarter. Chicago Partners Investment Group LLC increased its stake in Choice Hotels International by 4.5% in the 3rd quarter. Chicago Partners Investment Group LLC now owns 2,156 shares of the company's stock valued at $234,000 after buying an additional 92 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund increased its stake in Choice Hotels International by 4.8% in the 3rd quarter. Oregon Public Employees Retirement Fund now owns 4,343 shares of the company's stock valued at $445,000 after buying an additional 200 shares during the last quarter. Institutional investors own 65.57% of the company's stock.

About Choice Hotels International

Choice Hotels International, Inc is a global lodging franchisor that licenses its hotel brands to independent owners and operators. The company supports its franchisees through brand standards, reservation and distribution systems, marketing, loyalty programs, technology, and operational services rather than primarily owning and operating hotels itself.

Its portfolio includes brands serving a range of price points and travel needs, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, MainStay Suites, Suburban Studios, WoodSpring Suites, Cambria Hotels, and the Ascend Hotel Collection.

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