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

Key Points

• Analysts are cautious on CHH: Choice Hotels International has an average recommendation of “Reduce” from 14 analysts, with 4 sell ratings, 8 holds, and only 2 buys. The average 1-year target price is $111.75.
• Latest earnings missed expectations: For the quarter ended April 30, the company reported EPS of $1.07, below the $1.35 consensus estimate, while revenue came in at $340.58 million, slightly above estimates. Choice Hotels also guided FY 2026 EPS at $6.92 to $7.14.
• The company continues returning cash to shareholders: Choice Hotels paid a quarterly dividend of $0.2875 per share, equal to an annualized yield of about 1.1%. Insider and institutional activity was mixed, with CFO Scott E. Oaksmith selling shares while institutional ownership remains high at 65.57%.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have received an average rating of "Reduce" from the fourteen analysts that are currently covering the stock, Marketbeat reports. Four analysts have rated the stock with a sell rating, eight have assigned a hold rating and two have given a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $111.75.

CHH has been the topic of several research reports. Wells Fargo & Company increased 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. Susquehanna dropped their price objective on shares of Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating on the stock in a research note on Monday, May 4th. Barclays dropped their price objective on shares of Choice Hotels International from $112.00 to $100.00 and set an "underweight" rating on the stock in a research note on Thursday, April 30th. Deutsche Bank Aktiengesellschaft set a $114.00 target price on shares of Choice Hotels International in a research report on Monday, May 4th. Finally, Weiss Ratings upgraded shares of Choice Hotels International from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Monday, February 9th.

Choice Hotels International Stock Performance

Shares of CHH stock opened at $107.05 on Friday. Choice Hotels International has a 12 month low of $84.04 and a 12 month high of $136.45. The company has a debt-to-equity ratio of 14.58, a current ratio of 0.95 and a quick ratio of 0.95. The firm has a market capitalization of $4.87 billion, a P/E ratio of 14.43, a P/E/G ratio of 1.97 and a beta of 0.65. The company's fifty day moving average price is $106.64 and its two-hundred day moving average price is $101.83.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.07 EPS for the quarter, missing analysts' consensus estimates of $1.35 by ($0.28). The firm had revenue of $340.58 million during the quarter, compared to analyst estimates 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 quarterly revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.34 EPS. 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 7.13 earnings per share for the current fiscal year.

Choice Hotels International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Shareholders of record on Wednesday, April 1st were given a $0.2875 dividend. The ex-dividend date was Wednesday, April 1st. This represents a $1.15 annualized dividend and a yield of 1.1%. Choice Hotels International's dividend payout ratio is 15.50%.

Insider Buying and Selling

In other Choice Hotels International news, CFO Scott E. Oaksmith sold 1,603 shares of the company's stock in a transaction dated 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 transaction, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 23.78% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Teza Capital Management LLC grew its stake in shares of Choice Hotels International by 5.0% in the second quarter. Teza Capital Management LLC now owns 2,051 shares of the company's stock worth $260,000 after purchasing an additional 98 shares in the last quarter. Oregon Public Employees Retirement Fund grew its stake in shares of Choice Hotels International by 2.4% in the first quarter. Oregon Public Employees Retirement Fund now owns 4,243 shares of the company's stock worth $439,000 after purchasing an additional 100 shares in the last quarter. Atlantic Union Bankshares Corp grew its stake in shares of Choice Hotels International by 1.2% in the fourth quarter. Atlantic Union Bankshares Corp now owns 9,174 shares of the company's stock worth $874,000 after purchasing an additional 112 shares in the last quarter. Treasurer of the State of North Carolina grew its stake in shares of Choice Hotels International by 0.9% in the second quarter. Treasurer of the State of North Carolina now owns 12,626 shares of the company's stock worth $1,602,000 after purchasing an additional 112 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its stake in shares of Choice Hotels International by 10.7% in the first quarter. PNC Financial Services Group Inc. now owns 1,661 shares of the company's stock worth $172,000 after purchasing an additional 161 shares in the last quarter. Institutional investors own 65.57% of the company's stock.

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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