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

Key Points

• Choice Hotels International received a consensus “Reduce” rating from 14 analysts: four sell, eight hold, and two buy ratings. The average 12-month price target is $111, near the stock’s recent $111.72 price.
• The company’s latest quarterly results missed expectations on earnings, reporting $1.07 EPS versus the $1.35 consensus, although revenue of $340.57 million exceeded estimates and rose 2.3% year over year.
• Choice Hotels paid a quarterly dividend of $0.2875, equivalent to an annualized $1.15 payout and a 1.0% yield. Institutional investors own 65.57% of the stock, while insiders own 23.87%.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the fourteen ratings firms that are presently covering the stock, MarketBeat reports. Four research analysts have rated the stock with a sell recommendation, eight have assigned a hold recommendation and two have issued a buy recommendation on the company. The average 12-month price objective among analysts that have covered the stock in the last year is $111.00.

A number of research firms have commented on CHH. Morgan Stanley decreased their target price on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating on the stock in a research report on Tuesday, May 12th. Wells Fargo & Company lifted their price target on shares of Choice Hotels International from $98.00 to $99.00 and gave the company an "underweight" rating in a research report on Thursday, July 16th. Truist Financial reduced their price target on shares of Choice Hotels International from $129.00 to $128.00 and set a "buy" rating on the stock in a research note on Tuesday, May 26th. JPMorgan Chase & Co. upped their price objective on shares of Choice Hotels International from $116.00 to $118.00 and gave the stock a "neutral" rating in a report on Tuesday, July 21st. Finally, Robert W. Baird set a $128.00 price objective on shares of Choice Hotels International in a research report on Monday, May 11th.

Insider Buying and Selling

In other news, CFO Scott E. Oaksmith sold 2,000 shares of the firm's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $110.00, for a total transaction of $220,000.00. Following the completion of the transaction, the chief financial officer directly owned 35,172 shares in the company, valued at $3,868,920. This trade represents a 5.38% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 23.87% of the stock is owned by company insiders.

Institutional Investors Weigh In On Choice Hotels International

Institutional investors and hedge funds have recently modified their holdings of the company. Bamco Inc. NY lifted its stake in Choice Hotels International by 37.8% during the 4th quarter. Bamco Inc. NY now owns 7,386,575 shares of the company's stock worth $703,645,000 after acquiring an additional 2,026,679 shares in the last quarter. Vanguard Group Inc. grew its position in Choice Hotels International by 1.2% in the 4th quarter. Vanguard Group Inc. now owns 2,331,972 shares of the company's stock valued at $222,144,000 after acquiring an additional 27,032 shares in the last quarter. Wellington Management Group LLP increased its stake in Choice Hotels International by 55.1% during the fourth quarter. Wellington Management Group LLP now owns 574,630 shares of the company's stock worth $54,739,000 after purchasing an additional 204,146 shares during the period. Goldman Sachs Group Inc. increased its stake in Choice Hotels International by 151.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company's stock worth $48,833,000 after purchasing an additional 308,771 shares during the period. Finally, Geode Capital Management LLC increased its stake in Choice Hotels International by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 431,916 shares of the company's stock worth $41,151,000 after purchasing an additional 6,422 shares during the period. Hedge funds and other institutional investors own 65.57% of the company's stock.

Choice Hotels International Price Performance

NYSE:CHH opened at $111.72 on Friday. Choice Hotels International has a 52 week low of $84.04 and a 52 week high of $129.88. The stock's fifty day moving average is $110.87 and its two-hundred day moving average is $108.26. The company has a market capitalization of $5.08 billion, a P/E ratio of 15.06, a P/E/G ratio of 4.59 and a beta of 0.67. 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 released its quarterly earnings results on Thursday, April 30th. The company reported $1.07 earnings per share for the quarter, missing analysts' consensus estimates of $1.35 by ($0.28). The business had revenue of $340.57 million for the quarter, compared to analysts' expectations of $333.48 million. Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.The business's revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.34 earnings per share. Equities analysts expect that Choice Hotels International will post 7.14 EPS for the current year.

Choice Hotels International Dividend Announcement

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