Choice Hotels International (NYSE:CHH) Upgraded at Mizuho

Key Points

• Mizuho upgraded Choice Hotels International to “hold”, but the broader analyst consensus remains “reduce,” with two buy, nine hold and four sell ratings and an average price target of $112.23.
• Choice Hotels exceeded quarterly expectations, reporting $2.02 EPS versus the $1.97 estimate and $440.76 million in revenue, up 3.4% year over year. Full-year 2026 guidance remains $6.86–$7.10 EPS.
• Despite the earnings beat, Zacks cut its EPS forecasts for 2026 through 2028, signaling weaker longer-term expectations. Shares opened at $108.69, down 1.1%, while insiders own 23.87% of the company.

Choice Hotels International (NYSE:CHH - Get Free Report) was upgraded by stock analysts at Mizuho to a "hold" rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other equities research analysts also recently issued reports on CHH. Truist Financial reduced their price objective on shares of Choice Hotels International from $129.00 to $128.00 and set a "buy" rating for the company in a research report on Tuesday, May 26th. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $124.00 target price on shares of Choice Hotels International in a report on Thursday, August 6th. Weiss Ratings reiterated a "hold (c)" rating on shares of Choice Hotels International in a report on Tuesday, July 7th. Morgan Stanley boosted their price objective on Choice Hotels International from $86.00 to $91.00 and gave the stock an "underweight" rating in a research report on Tuesday, August 18th. Finally, Robert W. Baird set a $128.00 target price on Choice Hotels International in a research report on Monday, May 11th. Two equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $112.23.

Choice Hotels International Trading Down 1.1%

NYSE CHH opened at $108.69 on Thursday. The firm has a market capitalization of $4.89 billion, a P/E ratio of 15.35, a PEG ratio of 4.47 and a beta of 0.67. The business has a fifty day simple moving average of $109.63 and a 200 day simple moving average of $108.56. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $123.82. The company has a current ratio of 0.93, a quick ratio of 0.93 and a debt-to-equity ratio of 14.08.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $2.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 the consensus estimate of $436.48 million. During the same period in the previous year, the firm earned $1.92 EPS. The business'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 predict that Choice Hotels International will post 6.97 EPS for the current fiscal year.

Insider Activity at Choice Hotels International

In other Choice Hotels International news, Director William L. Jews sold 5,057 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $106.98, for a total transaction of $540,997.86. Following the completion of the transaction, the director directly owned 23,987 shares of the company's stock, valued at approximately $2,566,129.26. This represents a 17.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Scott E. Oaksmith sold 2,000 shares of the company's stock in a transaction on Friday, June 12th. The shares were sold at an average price of $110.00, for a total value of $220,000.00. Following the transaction, the chief financial officer directly owned 35,172 shares in the company, valued at $3,868,920. This represents a 5.38% decrease in their position. The disclosure for this sale is available in the SEC filing. 23.87% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Choice Hotels International

Several large investors have recently modified their holdings of CHH. Corient Private Wealth LP lifted its stake in shares of Choice Hotels International by 8.0% during the 2nd quarter. Corient Private Wealth LP now owns 13,461 shares of the company's stock valued at $1,484,000 after buying an additional 995 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Choice Hotels International in the 2nd quarter valued at approximately $584,000. California State Teachers Retirement System raised its holdings in Choice Hotels International by 9,525.7% during the 2nd quarter. California State Teachers Retirement System now owns 3,184,377 shares of the company's stock valued at $351,141,000 after acquiring an additional 3,151,295 shares during the period. AlphaGrep UK Ltd bought a new position in shares of Choice Hotels International in the second quarter worth $361,000. Finally, Syon Capital LLC grew its position in shares of Choice Hotels International by 20.2% in the second quarter. Syon Capital LLC now owns 5,404 shares of the company's stock valued at $596,000 after purchasing an additional 907 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

Key Stories Impacting Choice Hotels International

Here are the key news stories impacting Choice Hotels International this week:

• Neutral Sentiment: Choice Hotels recently exceeded expectations in its latest reported quarter, earning $2.02 per share versus the $1.97 consensus estimate, while revenue rose 3.4% year over year to $440.76 million. The company’s FY2026 guidance remains $6.86–$7.10 per share, providing some support despite the newer estimate cuts.
• Negative Sentiment: Zacks lowered its FY2026 EPS forecast to $6.93 from $7.08, below the current consensus estimate of $6.99. It also reduced estimates for third-quarter 2026 EPS to $2.24 from $2.35 and fourth-quarter EPS to $1.60 from $1.73.
• Negative Sentiment: The downward revisions extend into 2027: Q1 EPS was cut to $1.12 from $1.22, Q2 to $1.93 from $2.08, Q3 to $2.27 from $2.38, and Q4 to $1.75 from $1.88. Zacks reduced its full-year 2027 forecast to $7.06 from $7.56.
• Negative Sentiment: Longer-term expectations also weakened, with Q1 2028 EPS reduced to $1.24 from $1.34, Q2 to $2.12 from $2.27, and FY2028 EPS to $7.60 from $8.10. The broad-based nature of the cuts is the main bearish catalyst for CHH today.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company's core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.

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