Choice Hotels International (NYSE:CHH) Shares Gap Down on Disappointing Earnings

Key Points

• Choice Hotels' shares gapped down after the company reported a quarterly EPS of $1.07, missing the $1.31 consensus, with the stock opening at $109.93 (prior close $117.36) and last trading near $102.27.
• The company posted revenue of $340.58 million (vs. $331.0M expected), up 2.3% year‑over‑year, and set FY2026 EPS guidance of 6.920–7.140.
• Analysts are mixed — MarketBeat shows an average rating of Reduce and a $112.25 consensus target — while insiders have been selling recently (10,283 shares sold in the last 90 days) even though insiders still own 23.78%.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report)'s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $117.36, but opened at $109.93. Choice Hotels International shares last traded at $102.2710, with a volume of 133,023 shares changing hands.

The company reported $1.07 EPS for the quarter, missing the consensus estimate of $1.31 by ($0.24). The business had revenue of $340.58 million for the quarter, compared to analysts' expectations of $331.00 million. Choice Hotels International had a net margin of 23.17% and a return on equity of 541.07%. Choice Hotels International's revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period last year, the company earned $1.34 earnings per share. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS.

Choice Hotels International Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were given a dividend of $0.2875 per share. The ex-dividend date was Wednesday, April 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.1%. Choice Hotels International's dividend payout ratio is currently 14.52%.

Wall Street Analysts Forecast Growth

CHH has been the topic of several analyst reports. Truist Financial upped their price target on Choice Hotels International from $126.00 to $129.00 and gave the company a "buy" rating in a research report on Thursday, March 26th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $119.00 price target on shares of Choice Hotels International in a research report on Friday, February 20th. The Goldman Sachs Group upped their price target on Choice Hotels International from $90.00 to $100.00 and gave the company a "neutral" rating in a research report on Tuesday, February 3rd. Barclays upped their price target on Choice Hotels International from $101.00 to $112.00 and gave the company an "underweight" rating in a research report on Thursday, April 16th. Finally, Morgan Stanley upped their price target on Choice Hotels International from $83.00 to $87.00 and gave the company an "underweight" rating in a research report on Friday, April 10th. Two research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have issued a Sell rating to the stock. According to data from MarketBeat, Choice Hotels International has an average rating of "Reduce" and a consensus target price of $112.25.

Insider Activity at Choice Hotels International

In other Choice Hotels International news, CFO Scott E. Oaksmith sold 1,603 shares of the company's stock in a transaction that occurred on Wednesday, March 18th. The stock was sold at an average price of $100.00, for a total value of $160,300.00. Following the completion of the sale, the chief financial officer owned 37,172 shares of the company's stock, valued at $3,717,200. This represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Simone Wu sold 8,080 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The stock was sold at an average price of $101.56, for a total value of $820,604.80. Following the completion of the sale, the senior vice president directly owned 48,803 shares of the company's stock, valued at approximately $4,956,432.68. This represents a 14.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 10,283 shares of company stock valued at $1,040,947. 23.78% of the stock is owned by insiders.

Institutional Trading of Choice Hotels International

Hedge funds and other institutional investors have recently bought and sold shares of the company. Alps Advisors Inc. boosted its stake in Choice Hotels International by 42.4% in the third quarter. Alps Advisors Inc. now owns 40,577 shares of the company's stock worth $4,338,000 after buying an additional 12,082 shares in the last quarter. Hussman Strategic Advisors Inc. purchased a new stake in Choice Hotels International in the third quarter worth approximately $1,796,000. Elo Mutual Pension Insurance Co purchased a new stake in Choice Hotels International in the third quarter worth approximately $2,100,000. Y Intercept Hong Kong Ltd boosted its stake in Choice Hotels International by 111.9% in the third quarter. Y Intercept Hong Kong Ltd now owns 38,422 shares of the company's stock worth $4,108,000 after buying an additional 20,287 shares in the last quarter. Finally, Savoir Faire Capital Management L.P. boosted its stake in Choice Hotels International by 133.1% in the third quarter. Savoir Faire Capital Management L.P. now owns 18,939 shares of the company's stock worth $2,025,000 after buying an additional 10,813 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

Choice Hotels International Stock Performance

The firm has a market cap of $4.68 billion, a PE ratio of 12.92, a price-to-earnings-growth ratio of 5.25 and a beta of 0.74. The company has a 50 day simple moving average of $107.07 and a 200-day simple moving average of $101.47. The company has a debt-to-equity ratio of 10.52, a current ratio of 0.87 and a quick ratio of 0.87.

About Choice Hotels International

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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