Choice Hotels International (NYSE:CHH) Stock Crosses Above Two Hundred Day Moving Average - Here's Why

Key Points

• Choice Hotels International shares moved above their 200-day moving average, trading as high as $110.79 and last changing hands around $109.40, suggesting improved near-term technical momentum.
• Analyst sentiment remains cautious overall: several firms trimmed price targets, and the stock now carries an average "Reduce" rating with a consensus price target of $111.67.
• The company recently reported quarterly EPS of $1.07, missing estimates, while revenue came in at $340.57 million and rose 2.3% year over year; it also paid a quarterly dividend of $0.2875 per share.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) crossed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $107.35 and traded as high as $110.79. Choice Hotels International shares last traded at $109.4010, with a volume of 480,705 shares.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Barclays cut their price target on shares of Choice Hotels International from $112.00 to $100.00 and set an "underweight" rating on the stock in a research report on Thursday, April 30th. JPMorgan Chase & Co. lowered their price objective on 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. Truist Financial dropped their price objective on Choice Hotels International from $129.00 to $128.00 and set a "buy" rating on the stock in a research note on Tuesday, May 26th. Susquehanna cut their target price on Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating on the stock in a research report on Monday, May 4th. Finally, Robert W. Baird set a $128.00 target price on Choice Hotels International in a research note on Monday, May 11th. Two equities research 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. Based on data from MarketBeat.com, Choice Hotels International has an average rating of "Reduce" and a consensus price target of $111.67.

Choice Hotels International Stock Up 1.0%

The company has a market cap of $4.98 billion, a price-to-earnings ratio of 14.74, a P/E/G ratio of 5.18 and a beta of 0.67. The stock's 50-day moving average is $110.01 and its 200-day moving average is $107.35. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 14.58.

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

Choice Hotels International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were paid a $0.2875 dividend. The ex-dividend date was Wednesday, July 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.1%. Choice Hotels International's dividend payout ratio (DPR) is currently 15.50%.

Insider Buying and Selling

In related news, CFO Scott E. Oaksmith sold 2,000 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $110.00, for a total value of $220,000.00. Following the completion of the sale, the chief financial officer directly owned 35,172 shares of the company's stock, valued at $3,868,920. The trade was a 5.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 23.87% of the stock is owned by insiders.

Institutional Investors Weigh In On Choice Hotels International

A number of hedge funds have recently added to or reduced their stakes in CHH. GAMMA Investing LLC increased its holdings in shares of Choice Hotels International by 18.9% during the second quarter. GAMMA Investing LLC now owns 762 shares of the company's stock valued at $84,000 after acquiring an additional 121 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Choice Hotels International by 1,009.6% in the 1st quarter. Janus Henderson Group PLC now owns 139,550 shares of the company's stock worth $14,445,000 after purchasing an additional 126,973 shares in the last quarter. Amundi lifted its holdings in shares of Choice Hotels International by 158.7% in the 1st quarter. Amundi now owns 6,234 shares of the company's stock worth $645,000 after purchasing an additional 3,824 shares in the last quarter. California State Teachers Retirement System grew its position in Choice Hotels International by 5.8% in the 1st quarter. California State Teachers Retirement System now owns 33,082 shares of the company's stock valued at $3,424,000 after purchasing an additional 1,808 shares during the period. Finally, Empowered Funds LLC acquired a new stake in Choice Hotels International in the 1st quarter valued at $309,000. Institutional investors and hedge funds own 65.57% of the company's stock.

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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