Choice Hotels International (NYSE:CHH) Updates FY 2025 Earnings Guidance

Key Points

• Choice Hotels International has updated its FY 2025 earnings guidance, projecting earnings per share between 6.880 and 7.200, which is slightly below the consensus estimate of 7.002.
• During mid-day trading, CHH stock fell by 1.0%, reaching $123.39, with a 52-week range of $116.20 to $157.86.
• The company also announced a quarterly dividend of $0.2875 per share, resulting in an annualized dividend of $1.15 and a dividend yield of 0.9%.

Choice Hotels International (NYSE:CHH - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided earnings per share guidance of 6.880-7.200 for the period, compared to the consensus earnings per share estimate of 7.002. The company issued revenue guidance of -.

Choice Hotels International Stock Down 1.0%

CHH stock traded down $1.26 during mid-day trading on Thursday, reaching $123.39. 343,291 shares of the stock traded hands, compared to its average volume of 426,030. Choice Hotels International has a 52 week low of $116.20 and a 52 week high of $157.86. The business has a 50-day moving average of $128.79 and a two-hundred day moving average of $132.93. The firm has a market capitalization of $5.73 billion, a PE ratio of 18.84, a P/E/G ratio of 2.63 and a beta of 0.96.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $1.92 earnings per share for the quarter, beating analysts' consensus estimates of $1.90 by $0.02. The firm 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 377.51% and a net margin of 19.75%. The business's revenue was down 2.0% compared to the same quarter last year. During the same period in the prior year, the business posted $1.84 earnings per share. On average, equities research analysts anticipate that Choice Hotels International will post 7.07 EPS for the current fiscal year.

Choice Hotels International Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 16th. Stockholders of record on Tuesday, July 1st were given a dividend of $0.2875 per share. This represents a $1.15 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Tuesday, July 1st. Choice Hotels International's dividend payout ratio is currently 17.56%.

Analyst Upgrades and Downgrades

Several equities research analysts recently issued reports 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 note on Tuesday, July 15th. Barclays lowered their price target 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. Robert W. Baird cut their target price on Choice Hotels International from $150.00 to $145.00 and set an "outperform" rating for the company in a research report on Monday, May 19th. Susquehanna set a $140.00 price target on shares of Choice Hotels International and gave the stock a "neutral" rating in a research report on Friday, May 16th. Finally, Jefferies Financial Group decreased their target price on Choice Hotels International from $154.00 to $133.00 and set a "hold" rating on the stock in a research report on Wednesday, April 9th. Four analysts have rated the stock with a sell rating, seven have issued a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $134.08.

Insider Buying and Selling

In other news, EVP Dominic Dragisich sold 5,000 shares of the business's stock in a transaction on Tuesday, July 1st. The shares were sold at an average price of $128.54, for a total transaction of $642,700.00. Following the completion of the sale, the executive vice president owned 70,881 shares of the company's stock, valued at $9,111,043.74. The trade was a 6.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Ervin R. Shames sold 2,000 shares of the firm's stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $129.56, for a total value of $259,120.00. Following the sale, the director directly owned 52,212 shares in the company, valued at approximately $6,764,586.72. This represents a 3.69% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 14,500 shares of company stock worth $1,906,520. 23.78% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Jacobs Levy Equity Management Inc. purchased a new stake in Choice Hotels International in the first quarter valued at $324,000. Goldman Sachs Group Inc. grew its holdings in Choice Hotels International by 13.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 110,031 shares of the company's stock valued at $14,610,000 after buying an additional 12,904 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Choice Hotels International by 8.9% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 108,512 shares of the company's stock valued at $14,408,000 after buying an additional 8,887 shares during the period. Finally, Jane Street Group LLC lifted its stake in shares of Choice Hotels International by 89.8% in the 1st quarter. Jane Street Group LLC now owns 50,138 shares of the company's stock valued at $6,657,000 after purchasing an additional 23,726 shares during the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

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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