Choice Hotels International, Inc. (NYSE:CHH) Stock Has Average Target Price of $112.75

Key Points

• Analysts have a bearish-to-neutral view of Choice Hotels, with a consensus “Reduce” rating from 14 firms and an average 12-month price target of $112.75.
• Choice Hotels beat quarterly expectations, reporting $2.02 in EPS versus the $1.97 consensus and $440.76 million in revenue, up 3.4% year over year. Full-year 2026 EPS guidance is $6.86–$7.10.
• The company declared a quarterly dividend of $0.2875 per share, or $1.15 annualized, representing a 1.1% yield; institutional investors own 65.57% of the stock.

Shares of Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) have been given an average recommendation of "Reduce" by the fourteen ratings firms that are presently covering the stock, MarketBeat reports. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating on the company. The average 1 year target price among brokers that have covered the stock in the last year is $112.75.

CHH has been the subject of several research reports. Susquehanna increased their target price on Choice Hotels International from $110.00 to $115.00 and gave the company a "neutral" rating in a research report on Tuesday, August 11th. UBS Group lifted their price target on Choice Hotels International from $119.00 to $120.00 and gave the company a "neutral" rating in a research note on Friday, August 28th. Truist Financial boosted their price target on Choice Hotels International from $128.00 to $129.00 and gave the stock a "buy" rating in a report on Thursday, September 10th. Barclays boosted their price target on Choice Hotels International from $101.00 to $102.00 and gave the stock an "underweight" rating in a report on Thursday, August 6th. Finally, Morgan Stanley upped their price objective on Choice Hotels International from $91.00 to $92.00 and gave the company an "underweight" rating in a research note on Monday.

Insiders Place Their Bets

In related news, Director William Jews sold 5,057 shares of Choice Hotels International stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $106.98, for a total transaction of $540,997.86. Following the completion of the transaction, the director owned 23,987 shares of the company's stock, valued at $2,566,129.26. This trade represents a 17.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate insiders own 23.87% of the company's stock.

Hedge Funds Weigh In On Choice Hotels International

A number of institutional investors have recently modified their holdings of the company. Versant Capital Management Inc lifted its stake in shares of Choice Hotels International by 445.2% in the third quarter. Versant Capital Management Inc now owns 398 shares of the company's stock valued at $41,000 after buying an additional 325 shares in the last quarter. Nykredit A S acquired a new position in shares of Choice Hotels International during the second quarter valued at about $146,000. Corient Private Wealth LP increased its position in shares of Choice Hotels International by 8.0% during the second quarter. Corient Private Wealth LP now owns 13,461 shares of the company's stock worth $1,484,000 after acquiring an additional 995 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in shares of Choice Hotels International during the second quarter worth about $584,000. Finally, AlphaGrep UK Ltd acquired a new stake in shares of Choice Hotels International in the 2nd quarter worth about $361,000. 65.57% of the stock is owned by institutional investors and hedge funds.

Choice Hotels International Stock Up 0.6%

Shares of NYSE:CHH opened at $103.96 on Wednesday. The company has a fifty day moving average of $103.28 and a 200-day moving average of $107.93. The company has a market capitalization of $4.68 billion, a PE ratio of 14.68, a price-to-earnings-growth ratio of 2.61 and a beta of 0.71. 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 52-week low of $84.04 and a 52-week high of $123.82.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $2.02 earnings per share for the quarter, beating the consensus estimate of $1.97 by $0.05. The company had revenue of $440.76 million for the quarter, compared to the consensus estimate of $436.48 million. Choice Hotels International had a return on equity of 205.69% and a net margin of 20.28%. Choice Hotels International's revenue for the quarter was up 3.4% on a year-over-year basis. During the same quarter last year, the business posted $1.92 EPS. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS. On average, equities analysts predict that Choice Hotels International will post 6.97 EPS for the current fiscal year.

Choice Hotels International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Thursday, October 1st will be paid a $0.2875 dividend. The ex-dividend date of this dividend is Thursday, October 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.1%. Choice Hotels International's payout ratio is currently 16.24%.

About Choice Hotels International

Choice Hotels International, Inc is a hospitality company that franchises and manages a broad portfolio of hotels and lodging properties. Its brand portfolio spans economy, midscale, upscale and extended-stay segments, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, Rodeway Inn, Cambria Hotels, Ascend Hotel Collection, MainStay Suites, Suburban Studios, Everhome Suites and WoodSpring Suites.

The company primarily supports independent hotel owners and franchisees through brand standards, reservations, marketing, technology, loyalty programs and operational resources.

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