Choice Hotels International (NYSE:CHH) Hits New 52-Week Low - Time to Sell?

Key Points

• Choice Hotels International has hit a new 52-week low with stock trading as low as $109.33, raising concerns among investors.
• Several analysts have downgraded their price targets for the stock, with estimates now ranging from $117 to $136, and a consensus rating of "Reduce" has been established.
• The company recently announced a quarterly dividend of $0.2875, which will be paid on October 16th, reflecting a 1.0% dividend yield and a payout ratio of 17.69%.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) reached a new 52-week low during mid-day trading on Monday . The company traded as low as $109.33 and last traded at $110.04, with a volume of 680900 shares. The stock had previously closed at $109.86.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on the company. UBS Group lowered their price target on Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating on the stock in a report on Thursday, July 10th. Robert W. Baird dropped their target price on Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a report on Friday, August 22nd. Barclays dropped their target price on Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating on the stock in a report on Thursday, August 7th. Truist Financial cut their price objective on shares of Choice Hotels International from $144.00 to $128.00 and set a "hold" rating for the company in a research report on Friday, May 30th. Finally, JPMorgan Chase & Co. started coverage on shares of Choice Hotels International in a research report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 price objective for the company. Three investment analysts have rated the stock with a Buy rating, six have issued a Hold rating and four have assigned a Sell rating to the stock. According to MarketBeat, Choice Hotels International currently has an average rating of "Reduce" and a consensus target price of $133.38.

Choice Hotels International Stock Down 2.4%

The company has a market capitalization of $5.01 billion, a PE ratio of 16.66, a PEG ratio of 2.09 and a beta of 0.90. The stock's fifty day simple moving average is $121.85 and its 200-day simple moving average is $125.76.

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

Choice Hotels International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 16th. Investors of record on Wednesday, October 1st will be issued a dividend of $0.2875 per share. The ex-dividend date of this dividend is Wednesday, October 1st. This represents a $1.15 annualized dividend and a yield of 1.1%. Choice Hotels International's payout ratio is currently 17.69%.

Insider Activity at Choice Hotels International

In related news, EVP Dominic Dragisich sold 2,500 shares of the business's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $136.45, for a total value of $341,125.00. Following the sale, the executive vice president directly owned 68,381 shares in the company, valued at $9,330,587.45. The trade was a 3.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. In the last 90 days, insiders have sold 12,500 shares of company stock valued at $1,647,400. 24.02% of the stock is owned by insiders.

Institutional Investors Weigh In On Choice Hotels International

Institutional investors and hedge funds have recently made changes to their positions in the business. Kilter Group LLC acquired a new stake in shares of Choice Hotels International in the second quarter valued at approximately $25,000. UMB Bank n.a. grew its position in shares of Choice Hotels International by 66.2% in the first quarter. UMB Bank n.a. now owns 256 shares of the company's stock valued at $34,000 after purchasing an additional 102 shares during the last quarter. HM Payson & Co. acquired a new stake in shares of Choice Hotels International in the first quarter valued at approximately $35,000. Signaturefd LLC increased its position in Choice Hotels International by 64.7% during the first quarter. Signaturefd LLC now owns 275 shares of the company's stock worth $37,000 after buying an additional 108 shares in the last quarter. Finally, Whittier Trust Co. increased its position in Choice Hotels International by 138.5% during the second quarter. Whittier Trust Co. now owns 291 shares of the company's stock worth $37,000 after buying an additional 169 shares in the last quarter. 65.57% of the stock is currently owned by hedge funds and other institutional investors.

Choice Hotels International Company Profile

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.