Choice Hotels International (NYSE:CHH) Share Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Choice Hotels International stock rose above its 200-day moving average, trading as high as $113.66 and last changing hands at $111.19, a move some traders may view as a technical bullish signal.
• Recent analyst sentiment remains cautious: several firms trimmed price targets, and the stock now carries a consensus rating of “Reduce” with an average target price of $111.67.
• The company reported mixed quarterly results, missing EPS estimates but beating revenue expectations, while also announcing a quarterly dividend of $0.2875 per share payable July 15.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Thursday . The stock has a two hundred day moving average of $105.58 and traded as high as $113.66. Choice Hotels International shares last traded at $111.19, with a volume of 437,066 shares trading hands.

Wall Street Analysts Forecast Growth

CHH has been the topic of a number of recent analyst reports. Susquehanna lowered their price target on shares of Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. JPMorgan Chase & Co. decreased their price objective on shares of Choice Hotels International from $117.00 to $116.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Barclays lowered their target price on shares of Choice Hotels International from $112.00 to $100.00 and set an "underweight" rating on the stock in a research note on Thursday, April 30th. Truist Financial dropped their target price on Choice Hotels International from $129.00 to $128.00 and set a "buy" rating on the stock in a research report on Tuesday, May 26th. Finally, Morgan Stanley cut their price target on Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a research note on Tuesday, May 12th. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $111.67.

Choice Hotels International Price Performance

The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 14.58. The stock's 50-day simple moving average is $111.51 and its two-hundred day simple moving average is $105.58. The company has a market capitalization of $5.06 billion, a price-to-earnings ratio of 14.99, a PEG ratio of 5.36 and a beta of 0.67.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.28). The company had revenue of $340.57 million during the quarter, compared to analyst estimates of $333.48 million. Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The firm's revenue for the quarter was up 2.3% compared to the same quarter last year. During the same quarter last year, the business earned $1.34 EPS. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. Equities research analysts predict that Choice Hotels International, Inc. will post 7.11 earnings per share for the current year.

Choice Hotels International Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be issued a $0.2875 dividend. This represents a $1.15 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, July 1st. Choice Hotels International's payout ratio is presently 15.50%.

Insider Buying and Selling

In other Choice Hotels International news, CFO Scott E. Oaksmith sold 2,000 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $110.00, for a total transaction of $220,000.00. Following the completion of the sale, the chief financial officer directly owned 35,172 shares in the company, valued at approximately $3,868,920. The trade was a 5.38% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 23.78% of the company's stock.

Institutional Trading of Choice Hotels International

Institutional investors have recently made changes to their positions in the company. Bamco Inc. NY raised its stake in Choice Hotels International by 37.8% in the 4th quarter. Bamco Inc. NY now owns 7,386,575 shares of the company's stock valued at $703,645,000 after purchasing an additional 2,026,679 shares during the last quarter. Vanguard Group Inc. boosted its stake in Choice Hotels International by 1.2% during the 4th quarter. Vanguard Group Inc. now owns 2,331,972 shares of the company's stock worth $222,144,000 after purchasing an additional 27,032 shares during the last quarter. Wellington Management Group LLP boosted its stake in Choice Hotels International by 55.1% during the 4th quarter. Wellington Management Group LLP now owns 574,630 shares of the company's stock worth $54,739,000 after purchasing an additional 204,146 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Choice Hotels International by 151.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company's stock worth $48,833,000 after purchasing an additional 308,771 shares during the last quarter. Finally, Geode Capital Management LLC grew its holdings in shares of Choice Hotels International by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 431,916 shares of the company's stock worth $41,151,000 after buying an additional 6,422 shares in the last quarter. 65.57% of the stock is owned by institutional investors and hedge funds.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company's core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.

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