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

Key Points

• Choice Hotels International has a consensus analyst rating of "Reduce" from 14 research firms, with four sells, eight holds, and two buys; the average 1-year price target is about $111.67.
• The company’s latest earnings missed expectations, posting $1.07 EPS versus the $1.35 consensus, though revenue came in slightly above estimates at $340.57 million and rose 2.3% year over year.
• Choice Hotels also announced a quarterly dividend of $0.2875 per share, payable July 15, while CFO Scott E. Oaksmith recently sold 2,000 shares at $110 each.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been assigned an average recommendation of "Reduce" from the fourteen research firms that are currently covering the company, Marketbeat reports. Four analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $111.6667.

A number of analysts recently issued reports on the company. Susquehanna cut their price objective on Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating for the company in a research report on Monday, May 4th. Robert W. Baird set a $128.00 target price on shares of Choice Hotels International in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft set a $114.00 price target on shares of Choice Hotels International in a research report on Monday, May 4th. Barclays decreased 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 report on Thursday, April 30th. Finally, Morgan Stanley lowered their price objective on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a research report on Tuesday, May 12th.

Choice Hotels International Trading Up 0.4%

CHH opened at $112.87 on Monday. The stock has a market capitalization of $5.13 billion, a PE ratio of 15.21, a P/E/G ratio of 5.38 and a beta of 0.67. Choice Hotels International has a one year low of $84.04 and a one year high of $136.45. The company has a debt-to-equity ratio of 14.58, a quick ratio of 0.95 and a current ratio of 0.95. The business's 50 day moving average price is $110.63 and its 200 day moving average price is $106.58.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate 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 business had revenue of $340.57 million for the quarter, compared to analyst estimates of $333.48 million. During the same period last year, the business earned $1.34 EPS. Choice Hotels International's revenue was up 2.3% compared to the same quarter last year. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. As a group, equities research analysts expect that Choice Hotels International will post 7.11 EPS for the current year.

Choice Hotels International Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be paid a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date is Wednesday, July 1st. Choice Hotels International's dividend payout ratio is 15.50%.

Insider Activity at Choice Hotels International

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. 24.02% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Choice Hotels International

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