American Century Companies Inc. Lowers Stock Holdings in Choice Hotels International, Inc. $CHH

Key Points

• American Century Companies Inc. reduced its stake in Choice Hotels International by 58.4% during Q1, ending with 5,504 shares valued at approximately $731,000.
• Choice Hotels reported earnings of $1.92 per share, surpassing analysts' expectations, but experienced a 2% decline in quarterly revenue year-over-year.
• Insider trading activity saw EVP Dominic Dragisich selling 5,000 shares for $642,700, indicating a 6.59% reduction in his ownership of the stock.

American Century Companies Inc. trimmed its holdings in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 58.4% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 5,504 shares of the company's stock after selling 7,724 shares during the period. American Century Companies Inc.'s holdings in Choice Hotels International were worth $731,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. SG Americas Securities LLC grew its position in Choice Hotels International by 492.4% in the 1st quarter. SG Americas Securities LLC now owns 5,207 shares of the company's stock worth $691,000 after purchasing an additional 4,328 shares during the period. XTX Topco Ltd lifted its position in Choice Hotels International by 155.0% during the first quarter. XTX Topco Ltd now owns 13,243 shares of the company's stock valued at $1,758,000 after purchasing an additional 8,049 shares in the last quarter. Bank of New York Mellon Corp lifted its position in Choice Hotels International by 3.2% during the first quarter. Bank of New York Mellon Corp now owns 234,047 shares of the company's stock valued at $31,077,000 after purchasing an additional 7,159 shares in the last quarter. MQS Management LLC bought a new stake in Choice Hotels International during the first quarter valued at about $434,000. Finally, Essex Financial Services Inc. purchased a new stake in Choice Hotels International in the first quarter worth about $278,000. 65.57% of the stock is owned by institutional investors.

Insider Transactions at Choice Hotels International

In other Choice Hotels International news, EVP Dominic Dragisich sold 2,500 shares of the business's stock in a transaction that occurred on Wednesday, July 23rd. The stock was sold at an average price of $136.45, for a total transaction of $341,125.00. Following the completion of the transaction, the executive vice president owned 68,381 shares in the company, valued at $9,330,587.45. The trade was a 3.53% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders have sold a total of 12,500 shares of company stock valued at $1,647,400 over the last ninety days. 23.78% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on CHH. Susquehanna set a $140.00 price objective on Choice Hotels International and gave the stock a "neutral" rating in a research note on Friday, May 16th. Robert W. Baird lowered their target price on shares of Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a report on Friday, August 22nd. Truist Financial cut their target price on shares of Choice Hotels International from $144.00 to $128.00 and set a "hold" rating for the company in a research note on Friday, May 30th. Morgan Stanley reiterated an "underweight" rating and issued a $121.00 price target on shares of Choice Hotels International in a report on Tuesday, July 15th. Finally, UBS Group dropped their price objective on shares of Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating for the company in a report on Thursday, July 10th. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $133.38.

Choice Hotels International Trading Down 1.3%

NYSE:CHH traded down $1.49 during midday trading on Wednesday, hitting $112.48. 589,296 shares of the company traded hands, compared to its average volume of 374,673. The firm has a market capitalization of $5.20 billion, a P/E ratio of 17.30, a P/E/G ratio of 2.15 and a beta of 0.90. The firm's fifty day moving average is $125.26 and its 200-day moving average is $127.90. Choice Hotels International, Inc. has a 12-month low of $111.42 and a 12-month high of $157.86.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $1.92 EPS for the quarter, topping the consensus estimate of $1.90 by $0.02. Choice Hotels International had a net margin of 19.52% and a negative return on equity of 575.73%. The company had revenue of $426.44 million during the quarter, compared to analyst estimates of $430.13 million. During the same period in the previous year, the firm earned $1.84 earnings per share. Choice Hotels International's quarterly revenue was down 2.0% compared to the same quarter last year. On average, research analysts expect that Choice Hotels International, Inc. will post 7.07 EPS for the current fiscal year.

Choice Hotels International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 16th. Investors of record on Wednesday, October 1st will be given a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. Choice Hotels International's dividend payout ratio (DPR) is currently 17.69%.

About Choice Hotels International

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.