Choice Hotels International, Inc. (NYSE:CHH) Stock Now Rated "Reduce" by Sell-Side Analysts

Key Points

• Analysts rate Choice Hotels “Reduce” overall: Of 15 analysts, three recommend selling, ten say hold, and two say buy; the average 12-month price target is $115.46.
• Quarterly results beat estimates: Choice Hotels reported EPS of $2.33 versus $2.29 expected and revenue of $458.33 million versus $447.56 million expected; revenue increased 2.5% year over year.
• Company insiders have been selling shares: Insiders sold 8,284 shares worth about $919,000 over the past 90 days, while insiders collectively own 23.87% of the company.

Choice Hotels International, Inc. (NYSE:CHH - Get Free Report) has received a consensus rating of "Reduce" from the fifteen research firms that are currently covering the firm, Marketbeat Ratings reports. Three equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and two have given a buy rating to the company. The average twelve-month target price among analysts that have updated their coverage on the stock in the last year is $115.46.

CHH has been the topic of several research reports. Weiss Ratings cut Choice Hotels International from a "hold (c)" rating to a "hold (c-)" rating in a research report on Tuesday. JPMorgan Chase & Co. increased their target price on Choice Hotels International from $119.00 to $121.00 and gave the stock a "neutral" rating in a research report on Wednesday, October 21st. Barclays increased their target price on Choice Hotels International from $103.00 to $107.00 and gave the stock an "underweight" rating in a research report on Tuesday, November 3rd. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $124.00 target price on shares of Choice Hotels International in a research note on Thursday, August 6th. Finally, Robert W. Baird dropped their price target on Choice Hotels International from $129.00 to $128.00 and set an "outperform" rating on the stock in a research report on Tuesday, September 29th.

Insider Activity

In other news, CFO Scott Oaksmith sold 2,000 shares of the business's stock in a transaction on Wednesday, November 4th. The shares were sold at an average price of $120.35, for a total transaction of $240,700.00. Following the sale, the chief financial officer owned 31,172 shares in the company, valued at approximately $3,751,550.20. The trade was a 6.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Dominic Dragisich sold 1,227 shares of the company's stock in a transaction dated Tuesday, October 20th. The stock was sold at an average price of $112.00, for a total transaction of $137,424.00. Following the completion of the sale, the chief executive officer directly owned 90,055 shares in the company, valued at $10,086,160. This represents a 1.34% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 8,284 shares of company stock worth $919,122. Corporate insiders own 23.87% of the company's stock.

Institutional Investors Weigh In On Choice Hotels International

Hedge funds and other institutional investors have recently bought and sold shares of the business. Allworth Financial LP grew its stake in shares of Choice Hotels International by 92.5% in the 3rd quarter. Allworth Financial LP now owns 283 shares of the company's stock worth $31,000 after buying an additional 136 shares during the last quarter. Retirement Systems of Alabama raised its stake in Choice Hotels International by 3.0% during the third quarter. Retirement Systems of Alabama now owns 21,629 shares of the company's stock valued at $2,215,000 after buying an additional 636 shares during the last quarter. Fulcrum Asset Management LLP purchased a new position in Choice Hotels International during the third quarter valued at $210,000. Commonwealth Equity Services LLC raised its stake in Choice Hotels International by 2.2% during the third quarter. Commonwealth Equity Services LLC now owns 14,435 shares of the company's stock valued at $1,478,000 after buying an additional 313 shares during the last quarter. Finally, Chicago Partners Investment Group LLC boosted its holdings in Choice Hotels International by 4.5% in the third quarter. Chicago Partners Investment Group LLC now owns 2,156 shares of the company's stock worth $234,000 after acquiring an additional 92 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

Choice Hotels International Stock Performance

NYSE:CHH opened at $118.69 on Friday. The firm's fifty day simple moving average is $105.17 and its 200 day simple moving average is $107.40. Choice Hotels International has a twelve month low of $84.04 and a twelve month high of $123.82. The company has a quick ratio of 0.93, a current ratio of 1.26 and a debt-to-equity ratio of 16.52. The stock has a market cap of $5.28 billion, a P/E ratio of 26.37, a price-to-earnings-growth ratio of 2.80 and a beta of 0.65.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its earnings results on Monday, November 2nd. The company reported $2.33 earnings per share for the quarter, beating analysts' consensus estimates of $2.29 by $0.04. Choice Hotels International had a net margin of 12.65% and a return on equity of 216.71%. The firm had revenue of $458.33 million for the quarter, compared to analyst estimates of $447.56 million. During the same quarter in the previous year, the firm posted $2.10 EPS. The company's revenue for the quarter was up 2.5% compared to the same quarter last year. As a group, research analysts predict that Choice Hotels International will post 6.75 EPS for the current year.

Choice Hotels International Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were given a dividend of $0.2875 per share. The ex-dividend date of this dividend was Thursday, October 1st. This represents a $1.15 annualized dividend and a yield of 1.0%. Choice Hotels International's dividend payout ratio (DPR) is currently 25.56%.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a global lodging franchisor that licenses its hotel brands to independent owners and operators. The company supports its franchisees through brand standards, reservation and distribution systems, marketing, loyalty programs, technology, and operational services rather than primarily owning and operating hotels itself.

Its portfolio includes brands serving a range of price points and travel needs, including Comfort, Quality Inn, Sleep Inn, Clarion, Econo Lodge, MainStay Suites, Suburban Studios, WoodSpring Suites, Cambria Hotels, and the Ascend Hotel Collection.

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