Choice Hotels International, Inc. (NYSE:CHH) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analysts have a consensus rating of Reduce on Choice Hotels from 14 brokers (4 sell, 8 hold, 2 buy) with an average 1‑year target of $110.58, compared with the stock's recent open near $120.43.
• Choice beat quarterly estimates (EPS $1.60 vs $1.56; revenue $390.15M vs $369.26M) and set FY2026 EPS guidance of 6.920–7.140, roughly in line with analysts' average forecast of 7.22 EPS.
• The company pays a quarterly dividend of $0.2875 (annualized $1.15, ~1.0% yield, 14.52% payout ratio), while insiders sold about 10,283 shares (~$1.04M) over the past three months even though insiders still own roughly 24% of the stock.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been assigned a consensus rating of "Reduce" from the fourteen brokerages that are currently covering the stock, MarketBeat reports. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating on the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $110.5833.

CHH has been the topic of several research analyst reports. The Goldman Sachs Group boosted their target price on shares of Choice Hotels International from $90.00 to $100.00 and gave the stock a "neutral" rating in a research report on Tuesday, February 3rd. Jefferies Financial Group cut shares of Choice Hotels International from a "strong-buy" rating to a "hold" rating in a report on Monday, January 12th. Wells Fargo & Company lifted their price objective on shares of Choice Hotels International from $91.00 to $110.00 and gave the stock an "underweight" rating in a research note on Friday, February 20th. Morgan Stanley boosted their price objective on shares of Choice Hotels International from $83.00 to $87.00 and gave the company an "underweight" rating in a report on Friday, April 10th. Finally, JPMorgan Chase & Co. upped their target price on Choice Hotels International from $109.00 to $117.00 and gave the company a "neutral" rating in a research report on Tuesday.

Choice Hotels International Trading Down 1.4%

Choice Hotels International stock opened at $120.43 on Wednesday. The stock has a 50-day moving average of $105.95 and a two-hundred day moving average of $100.72. The company has a debt-to-equity ratio of 10.52, a quick ratio of 0.87 and a current ratio of 0.87. Choice Hotels International has a one year low of $84.04 and a one year high of $136.45. The stock has a market cap of $5.54 billion, a PE ratio of 15.21, a price-to-earnings-growth ratio of 5.42 and a beta of 0.74.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings results on Thursday, February 19th. The company reported $1.60 earnings per share for the quarter, topping analysts' consensus estimates of $1.56 by $0.04. Choice Hotels International had a return on equity of 541.07% and a net margin of 23.17%.The business had revenue of $390.15 million for the quarter, compared to analyst estimates of $369.26 million. During the same quarter in the previous year, the firm earned $1.55 earnings per share. The company's revenue was up .0% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. On average, research analysts anticipate that Choice Hotels International will post 7.22 EPS for the current fiscal year.

Choice Hotels International Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were paid a dividend of $0.2875 per share. This represents a $1.15 annualized dividend and a yield of 1.0%. The ex-dividend date was Wednesday, April 1st. Choice Hotels International's payout ratio is presently 14.52%.

Insider Transactions at Choice Hotels International

In related news, SVP Simone Wu sold 8,080 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $101.56, for a total value of $820,604.80. Following the sale, the senior vice president owned 48,803 shares in the company, valued at $4,956,432.68. This represents a 14.20% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Scott E. Oaksmith sold 1,603 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $100.00, for a total value of $160,300.00. Following the completion of the sale, the chief financial officer owned 37,172 shares in the company, valued at approximately $3,717,200. This represents a 4.13% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 10,283 shares of company stock worth $1,040,947 over the last three months. Corporate insiders own 24.02% of the company's stock.

Institutional Trading of Choice Hotels International

Several institutional investors and hedge funds have recently bought and sold shares of CHH. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Choice Hotels International in the 4th quarter valued at $27,000. Eagle Bay Advisors LLC acquired a new stake in shares of Choice Hotels International in the fourth quarter worth $28,000. Fifth Third Bancorp raised its holdings in shares of Choice Hotels International by 77.4% during the fourth quarter. Fifth Third Bancorp now owns 392 shares of the company's stock worth $37,000 after purchasing an additional 171 shares during the last quarter. UMB Bank n.a. raised its holdings in shares of Choice Hotels International by 6,416.7% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company's stock worth $37,000 after purchasing an additional 385 shares during the last quarter. Finally, Quarry LP acquired a new position in Choice Hotels International during the third quarter valued at $38,000. 65.57% of the stock is currently owned by institutional investors and hedge funds.

About Choice Hotels International

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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