Choice Hotels International, Inc. (NYSE:CHH) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Analyst sentiment is cautious: Fourteen analysts give Choice Hotels an average “Reduce” rating, including four sells, eight holds, and two buys. The average 12-month price target is $112.75, slightly above the reported share price of $111.10.
• Quarterly results exceeded expectations: Choice Hotels reported adjusted EPS of $2.02 versus the $1.97 consensus estimate, while revenue rose 3.4% year over year to $440.76 million. The company provided fiscal 2026 EPS guidance of $6.86–$7.10.
• Insiders have been selling shares: A director and the CFO recently reduced their holdings, while insiders collectively own 23.87% of the company. Institutional investors and hedge funds own 65.57% of outstanding shares.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been assigned an average recommendation of "Reduce" from the fourteen analysts that are covering the company, MarketBeat Ratings reports. Four investment analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation and two have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have covered the stock in the last year is $112.75.

A number of research analysts recently issued reports on CHH shares. Barclays lifted their target price on Choice Hotels International from $101.00 to $102.00 and gave the stock an "underweight" rating in a report on Thursday, August 6th. Wells Fargo & Company raised their price objective on shares of Choice Hotels International from $98.00 to $99.00 and gave the company an "underweight" rating in a research report on Thursday, July 16th. JPMorgan Chase & Co. lifted their price objective on shares of Choice Hotels International from $116.00 to $118.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 21st. Susquehanna boosted their target price on shares of Choice Hotels International from $110.00 to $115.00 and gave the stock a "neutral" rating in a report on Tuesday, August 11th. Finally, Robert W. Baird set a $128.00 target price on shares of Choice Hotels International in a report on Monday, May 11th.

Insider Activity at Choice Hotels International

In other news, Director William L. Jews sold 5,057 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $106.98, for a total transaction of $540,997.86. Following the completion of the sale, the director owned 23,987 shares in the company, valued at approximately $2,566,129.26. This represents a 17.41% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Scott E. Oaksmith sold 2,000 shares of the firm's stock in a transaction on Friday, June 12th. The stock was sold at an average price of $110.00, for a total value of $220,000.00. Following the sale, the chief financial officer directly owned 35,172 shares of the company's stock, valued at approximately $3,868,920. This represents a 5.38% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 23.87% of the company's stock.

Institutional Investors Weigh In On Choice Hotels International

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Eurizon Capital SGR S.p.A. acquired a new position in shares of Choice Hotels International in the 4th quarter valued at $27,000. Fifth Third Bancorp raised its holdings in Choice Hotels International by 77.4% during the 4th quarter. Fifth Third Bancorp now owns 392 shares of the company's stock worth $37,000 after buying an additional 171 shares during the period. UMB Bank n.a. raised its holdings in Choice Hotels International by 6,416.7% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company's stock worth $37,000 after buying an additional 385 shares during the period. Quarry LP purchased a new stake in Choice Hotels International during the third quarter valued at about $38,000. Finally, Hanson & Doremus Investment Management purchased a new stake in Choice Hotels International during the first quarter valued at about $39,000. 65.57% of the stock is owned by institutional investors and hedge funds.

Choice Hotels International Stock Performance

CHH opened at $111.10 on Tuesday. The business has a 50 day moving average price of $109.96 and a two-hundred day moving average price of $108.53. The company has a debt-to-equity ratio of 14.08, a current ratio of 0.93 and a quick ratio of 0.93. The company has a market capitalization of $5.00 billion, a price-to-earnings ratio of 15.69, a price-to-earnings-growth ratio of 4.45 and a beta of 0.67. Choice Hotels International has a 1-year low of $84.04 and a 1-year high of $123.82.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $2.02 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.97 by $0.05. Choice Hotels International had a return on equity of 205.69% and a net margin of 20.28%.The company had revenue of $440.76 million for the quarter, compared to analysts' expectations of $436.48 million. During the same period last year, the firm earned $1.92 EPS. The firm's revenue for the quarter was up 3.4% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS. Research analysts predict that Choice Hotels International will post 6.99 EPS for the current fiscal year.

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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