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

Key Points

• Choice Hotels International has a “Reduce” consensus rating: Four of 15 analysts rate the stock a sell, nine recommend holding, and two recommend buying. The average 12-month price target is $112.46.
• The company reported quarterly EPS of $2.02, beating estimates of $1.97, while revenue rose 3.4% year over year to $440.76 million. Shares opened at $96.94, below their 50-day and 200-day moving averages.
• Choice Hotels declared a quarterly dividend of $0.2875 per share, equivalent to an annualized $1.15 payout and a 1.2% yield; institutional investors own 65.57% of the company.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) has earned an average recommendation of "Reduce" from the fifteen ratings firms that are presently covering the firm, Marketbeat Ratings reports. Four analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have assigned a buy rating to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $112.4615.

CHH has been the topic of a number of recent research reports. Barclays lifted their target price on shares of Choice Hotels International from $101.00 to $102.00 and gave the company an "underweight" rating in a report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $124.00 price target on shares of Choice Hotels International in a research note on Thursday, August 6th. JPMorgan Chase & Co. raised 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 report on Tuesday, July 21st. Morgan Stanley lifted their price objective on shares of Choice Hotels International from $86.00 to $91.00 and gave the company an "underweight" rating in a research note on Tuesday, August 18th. Finally, Mizuho assumed coverage on shares of Choice Hotels International in a report on Thursday, August 27th. They issued a "neutral" rating and a $106.00 target price for the company.

Insider Transactions at Choice Hotels International

In other Choice Hotels International news, Director William Jews sold 5,057 shares of the company's stock in a transaction that occurred 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 directly owned 23,987 shares of the company's stock, valued at $2,566,129.26. This represents a 17.41% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 23.87% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Bamco Inc. NY lifted its holdings in shares of Choice Hotels International by 37.8% during the fourth quarter. Bamco Inc. NY now owns 7,386,575 shares of the company's stock worth $703,645,000 after purchasing an additional 2,026,679 shares during the period. Wellington Management Group LLP increased its stake in Choice Hotels International by 1.7% in the 2nd quarter. Wellington Management Group LLP now owns 669,693 shares of the company's stock valued at $73,847,000 after buying an additional 11,366 shares during the period. Fort Washington Investment Advisors Inc. OH increased its stake in Choice Hotels International by 1.0% in the 1st quarter. Fort Washington Investment Advisors Inc. OH now owns 359,407 shares of the company's stock valued at $37,199,000 after buying an additional 3,656 shares during the period. Norges Bank purchased a new position in Choice Hotels International during the 4th quarter worth $28,910,000. Finally, Quantinno Capital Management LP raised its position in Choice Hotels International by 35.5% during the 1st quarter. Quantinno Capital Management LP now owns 258,355 shares of the company's stock worth $26,740,000 after buying an additional 67,697 shares during the last quarter. Institutional investors and hedge funds own 65.57% of the company's stock.

Choice Hotels International Stock Down 1.7%

Choice Hotels International stock opened at $96.94 on Friday. The company has a market capitalization of $4.36 billion, a P/E ratio of 13.69, a PEG ratio of 2.49 and a beta of 0.66. The company has a debt-to-equity ratio of 14.08, a quick ratio of 0.93 and a current ratio of 0.93. Choice Hotels International has a fifty-two week low of $84.04 and a fifty-two week high of $123.82. The stock has a 50-day simple moving average of $106.00 and a 200-day simple moving average of $107.53.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $2.02 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $440.76 million for the quarter, compared to the consensus estimate of $436.48 million. During the same quarter last year, the business posted $1.92 EPS. The firm's quarterly revenue was up 3.4% compared to the same quarter last year. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS. Equities research analysts expect that Choice Hotels International will post 6.97 earnings per share for the current year.

Choice Hotels International Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be issued a dividend of $0.2875 per share. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.2%. Choice Hotels International's dividend payout ratio (DPR) is currently 16.24%.

About Choice Hotels International

Choice Hotels International, Inc is a hospitality company that franchises and manages a portfolio of hotels and lodging properties. Its brands serve a range of market segments, including economy, midscale, upscale and extended-stay accommodations. The company's portfolio includes Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn, Cambria Hotels, Ascend Hotel Collection, Everhome Suites and WoodSpring Suites.

Choice Hotels primarily operates through a franchise model, providing hotel owners with brand licensing, reservation services, marketing, technology, loyalty-program support and other operational resources.

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