Choice Hotels International, Inc. (NYSE:CHH) Given Consensus Rating of "Reduce" by Brokerages

Key Points

• Broker sentiment is cautious: Choice Hotels International has a consensus rating of "Reduce" from 14 analysts, with four sell ratings, eight hold ratings, and two buy ratings. The average price target is about $111.67.
• Latest earnings missed expectations: The company reported $1.07 EPS for the quarter, below the $1.35 consensus estimate, though revenue came in slightly above forecasts at $340.58 million and rose 2.3% year over year.
• The stock fell and a dividend is coming: Shares were down 3.7% to $104.60, and the company declared a quarterly dividend of $0.2875 per share, payable July 15.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been given a consensus recommendation of "Reduce" by the fourteen analysts that are covering the company, Marketbeat reports. Four equities research analysts have rated the stock with a sell rating, eight have given a hold rating and two have assigned a buy rating to the company. The average 12 month price target among brokers that have issued a report on the stock in the last year is $111.6667.

A number of equities research analysts have recently issued reports on the company. JPMorgan Chase & Co. reduced their price objective on Choice Hotels International from $117.00 to $116.00 and set a "neutral" rating for the company in a report on Wednesday, May 6th. Robert W. Baird set a $128.00 price objective on Choice Hotels International in a report on Monday, May 11th. Susquehanna reduced their price objective on Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating for the company in a report on Monday, May 4th. Morgan Stanley reduced their price objective on Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Finally, Wells Fargo & Company lifted their price target on shares of Choice Hotels International from $91.00 to $110.00 and gave the company an "underweight" rating in a research report on Friday, February 20th.

Insiders Place Their Bets

In related news, CFO Scott E. Oaksmith sold 1,603 shares of the stock in a transaction on Wednesday, March 18th. The stock was 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 directly owned 37,172 shares in the company, valued at $3,717,200. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 23.78% of the stock is owned by insiders.

Institutional Trading of Choice Hotels International

A number of institutional investors and hedge funds have recently bought and sold shares of CHH. Jacobs Levy Equity Management Inc. acquired a new stake in Choice Hotels International in the first quarter valued at $324,000. Goldman Sachs Group Inc. increased its holdings in Choice Hotels International by 13.3% in the first quarter. Goldman Sachs Group Inc. now owns 110,031 shares of the company's stock valued at $14,610,000 after purchasing an additional 12,904 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Choice Hotels International by 8.9% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 108,512 shares of the company's stock valued at $14,408,000 after purchasing an additional 8,887 shares during the period. Jane Street Group LLC increased its holdings in Choice Hotels International by 89.8% in the first quarter. Jane Street Group LLC now owns 50,138 shares of the company's stock valued at $6,657,000 after purchasing an additional 23,726 shares during the period. Finally, Prudential Financial Inc. increased its holdings in Choice Hotels International by 35.2% in the second quarter. Prudential Financial Inc. now owns 2,139 shares of the company's stock valued at $299,000 after purchasing an additional 557 shares during the period. 65.57% of the stock is currently owned by institutional investors and hedge funds.

Choice Hotels International Trading Down 3.7%

Shares of NYSE:CHH opened at $104.60 on Thursday. Choice Hotels International has a 12-month low of $84.04 and a 12-month high of $136.45. The stock has a market cap of $4.76 billion, a PE ratio of 14.10, a P/E/G ratio of 5.19 and a beta of 0.67. The business has a 50 day moving average of $110.60 and a 200-day moving average of $103.87. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 14.58.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.35 by ($0.28). Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.The firm had revenue of $340.58 million for the quarter, compared to the consensus estimate of $333.48 million. During the same quarter in the prior year, the firm earned $1.34 EPS. The company's revenue was up 2.3% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. As a group, equities research analysts forecast that Choice Hotels International will post 7.11 earnings per share for the current year.

Choice Hotels International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st will be issued a dividend of $0.2875 per share. The ex-dividend date is Wednesday, July 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.1%. Choice Hotels International's dividend payout ratio is 15.50%.

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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