Choice Hotels International (NYSE:CHH) Hits New 1-Year Low - Should You Sell?

Key Points

• Choice Hotels International shares hit a new 52-week low of $98.21, currently trading at $98.91, following a series of analyst downgrades and a consensus rating of "Reduce."
• Recent earnings showed an EPS of $1.92, slightly exceeding estimates, but revenue decreased by 2.0% year-over-year, indicating potential concerns for future performance.
• The company declared a quarterly dividend of $0.2875, with a yield of 1.2%, reflecting its ongoing commitment to returning value to shareholders despite recent stock declines.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report)'s share price hit a new 52-week low on Thursday . The company traded as low as $98.21 and last traded at $98.91, with a volume of 41807 shares changing hands. The stock had previously closed at $99.04.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on CHH. JPMorgan Chase & Co. began coverage on Choice Hotels International in a report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 target price on the stock. Barclays cut their price objective on Choice Hotels International from $117.00 to $101.00 and set an "underweight" rating on the stock in a research report on Friday, October 3rd. Robert W. Baird cut their price objective on Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a research report on Friday, August 22nd. UBS Group cut their price objective on Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating on the stock in a research report on Thursday, July 10th. Finally, Morgan Stanley reissued an "underweight" rating and issued a $121.00 price objective on shares of Choice Hotels International in a research report on Tuesday, July 15th. Two investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Reduce" and a consensus price target of $127.92.

Choice Hotels International Price Performance

The firm has a market capitalization of $4.59 billion, a PE ratio of 15.23, a price-to-earnings-growth ratio of 7.29 and a beta of 0.83. The stock has a 50-day moving average price of $113.01 and a 200-day moving average price of $122.60.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $1.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.90 by $0.02. Choice Hotels International had a negative return on equity of 575.73% and a net margin of 19.52%.The business had revenue of $426.44 million for the quarter, compared to analyst estimates of $430.13 million. During the same period in the previous year, the company earned $1.84 earnings per share. The company's revenue for the quarter was down 2.0% compared to the same quarter last year. As a group, equities research analysts predict that Choice Hotels International, Inc. will post 7.07 earnings per share for the current fiscal 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 $0.2875 dividend. This represents a $1.15 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Wednesday, October 1st. Choice Hotels International's payout ratio is currently 17.69%.

Insiders Place Their Bets

In related news, EVP Dominic Dragisich sold 2,500 shares of the business's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $136.45, for a total value of $341,125.00. Following the completion of the sale, the executive vice president directly owned 68,381 shares of the company's stock, valued at $9,330,587.45. The trade was a 3.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 23.78% of the stock is currently owned by corporate insiders.

Institutional Trading of Choice Hotels International

Hedge funds and other institutional investors have recently bought and sold shares of the company. Kilter Group LLC bought a new stake in Choice Hotels International in the second quarter valued at about $25,000. HM Payson & Co. bought a new position in shares of Choice Hotels International during the first quarter valued at approximately $35,000. Signaturefd LLC grew its holdings in shares of Choice Hotels International by 64.7% during the first quarter. Signaturefd LLC now owns 275 shares of the company's stock valued at $37,000 after purchasing an additional 108 shares during the last quarter. Whittier Trust Co. grew its holdings in shares of Choice Hotels International by 138.5% during the second quarter. Whittier Trust Co. now owns 291 shares of the company's stock valued at $37,000 after purchasing an additional 169 shares during the last quarter. Finally, Toth Financial Advisory Corp bought a new position in shares of Choice Hotels International during the second quarter valued at approximately $38,000. 65.57% of the stock is owned by 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.

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