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

Key Points

• Choice Hotels International reached a new 52-week low, trading at $109.50, following an earlier close of $112.81, with over 650,000 shares exchanged.
• Multiple research analysts have downgraded their target prices for CHH, with Barclays setting it at $117.00 and JPMorgan Chase & Co. at $124.00, reflecting a bearish outlook.
• The company declared a quarterly dividend of $0.2875 per share, to be paid on October 16th, which implies an annualized dividend yield of 1.0%.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $109.50 and last traded at $109.95, with a volume of 650729 shares changing hands. The stock had previously closed at $112.81.

Wall Street Analysts Forecast Growth

CHH has been the topic of several research analyst reports. Barclays dropped their target price on shares of Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating on the stock in a research report on Thursday, August 7th. Robert W. Baird dropped their target price on shares of 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. JPMorgan Chase & Co. initiated coverage on shares of Choice Hotels International in a research report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 target price on the stock. Morgan Stanley reiterated an "underweight" rating and issued a $121.00 target price on shares of Choice Hotels International in a research report on Tuesday, July 15th. Finally, Truist Financial dropped 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. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus price target of $133.38.

Choice Hotels International Price Performance

The business's 50 day simple moving average is $124.13 and its 200 day simple moving average is $126.94. The company has a market capitalization of $5.09 billion, a PE ratio of 16.92, a P/E/G ratio of 2.13 and a beta of 0.90.

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

Choice Hotels International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 16th. Stockholders of record on Wednesday, October 1st will be paid a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, October 1st. Choice Hotels International's payout ratio is 17.69%.

Insider Activity

In other news, EVP Dominic Dragisich sold 2,500 shares of the business'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 value of $341,125.00. Following the sale, the executive vice president directly owned 68,381 shares of the company's stock, valued at approximately $9,330,587.45. The trade was a 3.53% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last quarter, insiders have sold 12,500 shares of company stock valued at $1,647,400. 23.78% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Choice Hotels International

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Millennium Management LLC purchased a new stake in Choice Hotels International during the 1st quarter worth approximately $49,799,000. Bamco Inc. NY increased its stake in Choice Hotels International by 6.8% during the 2nd quarter. Bamco Inc. NY now owns 4,990,652 shares of the company's stock worth $633,214,000 after buying an additional 317,618 shares during the period. Rock Creek Group LP increased its stake in Choice Hotels International by 52.3% during the 2nd quarter. Rock Creek Group LP now owns 811,579 shares of the company's stock worth $102,973,000 after buying an additional 278,715 shares during the period. Cubist Systematic Strategies LLC purchased a new stake in shares of Choice Hotels International in the 1st quarter valued at approximately $25,673,000. Finally, BNP Paribas Financial Markets increased its position in shares of Choice Hotels International by 194.8% in the 2nd quarter. BNP Paribas Financial Markets now owns 237,097 shares of the company's stock valued at $30,083,000 after purchasing an additional 156,666 shares during the last quarter. 65.57% of the stock is 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.

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