Choice Hotels International (NYSE:CHH) Price Target Cut to $117.00 by Analysts at Barclays

Key Points

• Barclays has reduced its price target for Choice Hotels International from $121.00 to $117.00, maintaining an "underweight" rating, indicating a potential downside of 5.66% from the stock's previous close.
• Other analysts have also lowered their price targets, with UBS and Truist decreasing targets to $149.00 and $128.00, respectively, reflecting a generally pessimistic outlook on the stock.
• Despite recent price increases, Choice Hotels' latest quarterly earnings showed a revenue decline of 2.0% year-over-year, with the current consensus EPS expectation for the fiscal year set at 7.07.

Choice Hotels International (NYSE:CHH - Get Free Report) had its target price reduced by equities research analysts at Barclays from $121.00 to $117.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has an "underweight" rating on the stock. Barclays's price target points to a potential downside of 5.66% from the company's previous close.

Several other research analysts also recently commented on the stock. UBS Group dropped their target price 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. Truist Financial decreased their target price on shares of Choice Hotels International from $144.00 to $128.00 and set a "hold" rating on the stock in a research report on Friday, May 30th. Robert W. Baird decreased their target price on shares of Choice Hotels International from $150.00 to $145.00 and set an "outperform" rating on the stock in a research report on Monday, May 19th. Susquehanna set a $140.00 target price on shares of Choice Hotels International and gave the company a "neutral" rating in a research report on Friday, May 16th. Finally, Jefferies Financial Group decreased their target price on shares of Choice Hotels International from $154.00 to $133.00 and set a "hold" rating on the stock in a research report on Wednesday, April 9th. Four investment analysts have rated the stock with a sell rating, seven have issued a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, Choice Hotels International currently has a consensus rating of "Hold" and a consensus target price of $134.08.

Choice Hotels International Stock Performance

Shares of NYSE:CHH opened at $124.03 on Thursday. The stock has a market capitalization of $5.75 billion, a price-to-earnings ratio of 19.07, a PEG ratio of 2.63 and a beta of 0.96. Choice Hotels International has a 1-year low of $116.20 and a 1-year high of $157.86. The company has a 50 day moving average price of $128.79 and a 200 day moving average price of $132.93.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.92 EPS for the quarter, topping analysts' consensus estimates of $1.90 by $0.02. Choice Hotels International had a net margin of 19.75% and a negative return on equity of 377.51%. The firm had revenue of $426.44 million during the quarter, compared to analyst estimates of $430.13 million. During the same quarter last year, the business posted $1.84 EPS. The company's revenue was down 2.0% on a year-over-year basis. On average, sell-side analysts expect that Choice Hotels International will post 7.07 EPS for the current fiscal year.

Insider Buying and Selling

In other news, Director Ervin R. Shames sold 2,000 shares of the firm's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $129.56, for a total value of $259,120.00. Following the sale, the director directly owned 52,212 shares in the company, valued at approximately $6,764,586.72. This trade represents a 3.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Dominic Dragisich sold 2,500 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $136.45, for a total transaction of $341,125.00. Following the completion of the sale, the executive vice president owned 68,381 shares in the company, valued at approximately $9,330,587.45. The trade was a 3.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 14,500 shares of company stock worth $1,906,520. 23.78% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Choice Hotels International

Several hedge funds have recently added to or reduced their stakes in the business. Hantz Financial Services Inc. increased its stake in shares of Choice Hotels International by 23.6% in the 2nd quarter. Hantz Financial Services Inc. now owns 434 shares of the company's stock valued at $55,000 after acquiring an additional 83 shares in the last quarter. Captrust Financial Advisors increased its stake in Choice Hotels International by 4.5% during the 4th quarter. Captrust Financial Advisors now owns 2,069 shares of the company's stock valued at $294,000 after purchasing an additional 90 shares in the last quarter. Alliance Wealth Advisors LLC UT increased its stake in Choice Hotels International by 2.2% during the 1st quarter. Alliance Wealth Advisors LLC UT now owns 4,367 shares of the company's stock valued at $580,000 after purchasing an additional 92 shares in the last quarter. Occudo Quantitative Strategies LP increased its stake in Choice Hotels International by 3.2% during the 4th quarter. Occudo Quantitative Strategies LP now owns 3,062 shares of the company's stock valued at $435,000 after purchasing an additional 95 shares in the last quarter. Finally, Louisiana State Employees Retirement System increased its stake in Choice Hotels International by 1.6% during the 1st quarter. Louisiana State Employees Retirement System now owns 6,300 shares of the company's stock valued at $837,000 after purchasing an additional 100 shares in the last quarter. 65.57% of the stock is currently owned by institutional investors and hedge funds.

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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