Choice Hotels International (NYSE:CHH) Cut to "Underperform" at Bank of America

Key Points

• Choice Hotels International was downgraded from a "buy" rating to an "underperform" rating by Bank of America, who set a price target of $110.00 for the stock.
• The company's shares have seen a trading decline of 1.5%, which puts them at $107.85, with a market capitalization of $4.99 billion.
• Recent earnings reports indicated that Choice Hotels International surpassed expectations with an earnings per share of $1.92, although revenue declined 2.0% year-over-year.

Choice Hotels International (NYSE:CHH - Get Free Report) was downgraded by investment analysts at Bank of America from a "buy" rating to an "underperform" rating in a research note issued on Monday, Marketbeat reports. They currently have a $110.00 price target on the stock. Bank of America's target price indicates a potential upside of 1.99% from the company's previous close.

A number of other equities research analysts also recently weighed in on CHH. Barclays reduced their price target on shares of Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating on the stock in a research note on Thursday, August 7th. Morgan Stanley restated an "underweight" rating and set a $121.00 price target on shares of Choice Hotels International in a research note on Tuesday, July 15th. JPMorgan Chase & Co. assumed coverage on shares of Choice Hotels International in a report on Monday, June 23rd. They set an "underweight" rating and a $124.00 price objective on the stock. Robert W. Baird dropped their price objective on shares of Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a report on Friday, August 22nd. Finally, UBS Group dropped their price objective on shares of Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating on the stock in a report on Thursday, July 10th. Two analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the stock. According to MarketBeat, Choice Hotels International presently has an average rating of "Reduce" and a consensus target price of $129.15.

Choice Hotels International Trading Down 1.5%

Shares of CHH traded down $1.60 on Monday, reaching $107.85. 97,836 shares of the company's stock were exchanged, compared to its average volume of 425,220. The stock has a market capitalization of $4.99 billion, a P/E ratio of 16.59, a price-to-earnings-growth ratio of 2.06 and a beta of 0.90. The business has a 50 day moving average price of $120.07 and a two-hundred day moving average price of $125.07. Choice Hotels International has a 12 month low of $105.99 and a 12 month high of $157.86.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $1.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.90 by $0.02. Choice Hotels International had a net margin of 19.52% and a negative return on equity of 575.73%. The company had revenue of $426.44 million during the quarter, compared to the consensus estimate of $430.13 million. During the same quarter in the prior year, the firm earned $1.84 earnings per share. The firm's revenue was down 2.0% compared to the same quarter last year. Equities research analysts predict that Choice Hotels International will post 7.07 EPS for the current year.

Insider Transactions at Choice Hotels International

In related news, EVP Dominic Dragisich sold 5,000 shares of the company's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $128.54, for a total value of $642,700.00. Following the transaction, the executive vice president owned 70,881 shares in the company, valued at $9,111,043.74. The trade was a 6.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last quarter, insiders have sold 12,500 shares of company stock valued at $1,647,400. Insiders own 24.02% of the company's stock.

Institutional Investors Weigh In On Choice Hotels International

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Squarepoint Ops LLC bought a new position in shares of Choice Hotels International during the 2nd quarter valued at approximately $5,020,000. Clarion Wealth Managment Partners LLC bought a new stake in Choice Hotels International during the second quarter valued at about $263,000. FORA Capital LLC bought a new stake in Choice Hotels International during the second quarter valued at about $973,000. State of Tennessee Department of Treasury boosted its holdings in Choice Hotels International by 14.7% in the second quarter. State of Tennessee Department of Treasury now owns 7,808 shares of the company's stock worth $991,000 after acquiring an additional 1,000 shares in the last quarter. Finally, Teza Capital Management LLC boosted its holdings in 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 acquiring an additional 98 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

About Choice Hotels International

Choice Hotels International, Inc, together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection.

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