Choice Hotels International (NYSE:CHH) Reaches New 12-Month Low - Should You Sell?

Key Points

• Choice Hotels International's stock recently fell to a new 52-week low of $97.71, marking a significant drop from its previous close of $102.78.
• Several analysts have downgraded the stock, with Bank of America reducing its rating from "buy" to "underperform" and setting a target price of $110.00.
• The company announced a quarterly dividend of $0.2875 per share, representing an annualized yield of 1.2% and a payout ratio of 17.69%.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) shares hit a new 52-week low during trading on Thursday . The stock traded as low as $97.71 and last traded at $97.81, with a volume of 587721 shares traded. The stock had previously closed at $102.78.

Wall Street Analysts Forecast Growth

CHH has been the topic of a number of recent research reports. Bank of America lowered Choice Hotels International from a "buy" rating to an "underperform" rating and set a $110.00 price objective on the stock. in a research note on Monday, September 29th. Robert W. Baird decreased their price target 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. Barclays decreased their target price on shares of Choice Hotels International from $117.00 to $101.00 and set an "underweight" rating on the stock in a report on Friday, October 3rd. Weiss Ratings restated a "hold (c)" rating on shares of Choice Hotels International in a research report on Wednesday, October 8th. Finally, UBS Group decreased 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 research note on Thursday, July 10th. Two analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and five have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Choice Hotels International currently has a consensus rating of "Reduce" and a consensus target price of $126.77.

Choice Hotels International Trading Down 4.8%

The firm has a market cap of $4.53 billion, a P/E ratio of 15.05, a price-to-earnings-growth ratio of 7.33 and a beta of 0.83. The business has a 50-day moving average of $110.88 and a two-hundred day moving average of $121.58.

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

Choice Hotels International Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 16th. Shareholders of record on Wednesday, October 1st were issued a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date of this dividend was Wednesday, October 1st. Choice Hotels International's payout ratio is presently 17.69%.

Institutional Trading of Choice Hotels International

Several institutional investors have recently modified their holdings of CHH. Kilter Group LLC bought a new stake in shares of Choice Hotels International in the 2nd quarter valued at about $25,000. HM Payson & Co. bought a new stake in shares of Choice Hotels International in the 1st quarter valued at about $35,000. Signaturefd LLC boosted its holdings in Choice Hotels International by 64.7% in the first quarter. Signaturefd LLC now owns 275 shares of the company's stock valued at $37,000 after acquiring an additional 108 shares during the last quarter. Whittier Trust Co. boosted its holdings in Choice Hotels International by 138.5% in the second quarter. Whittier Trust Co. now owns 291 shares of the company's stock valued at $37,000 after acquiring an additional 169 shares during the last quarter. Finally, Toth Financial Advisory Corp bought a new stake in shares of Choice Hotels International in the 2nd quarter valued at $38,000. 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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