Bank of New York Mellon Corp Reduces Stock Position in Choice Hotels International, Inc. $CHH

Key Points

• Bank of New York Mellon reduced its Choice Hotels stake by 5.5% in the first quarter, selling 12,945 shares and retaining 222,156 shares valued at approximately $22.99 million. Institutional investors collectively own 65.57% of CHH.
• Analyst sentiment remains cautious: two analysts rate the stock a Buy, eight rate it Hold, and four rate it Sell, resulting in an average “Reduce” rating and a consensus price target of $111.
• Choice Hotels reported quarterly EPS of $1.07, missing estimates of $1.35, while revenue of $340.57 million exceeded expectations. The company maintains a quarterly dividend of $0.2875 per share, equivalent to a 1.0% annual yield.

Bank of New York Mellon Corp lowered its stake in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 5.5% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 222,156 shares of the company's stock after selling 12,945 shares during the quarter. Bank of New York Mellon Corp owned approximately 0.49% of Choice Hotels International worth $22,993,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also made changes to their positions in the company. Sanctuary Advisors LLC increased its stake in Choice Hotels International by 29.9% in the 1st quarter. Sanctuary Advisors LLC now owns 14,247 shares of the company's stock valued at $1,475,000 after buying an additional 3,276 shares during the period. Calamos Wealth Management LLC acquired a new stake in shares of Choice Hotels International during the 1st quarter valued at approximately $301,000. Calamos Advisors LLC purchased a new stake in Choice Hotels International during the first quarter worth $301,000. Principal Financial Group Inc. grew its stake in Choice Hotels International by 4.4% in the 1st quarter. Principal Financial Group Inc. now owns 46,547 shares of the company's stock valued at $4,818,000 after acquiring an additional 1,950 shares during the last quarter. Finally, Procyon Advisors LLC grew its position in shares of Choice Hotels International by 19.1% in the first quarter. Procyon Advisors LLC now owns 3,326 shares of the company's stock valued at $344,000 after purchasing an additional 534 shares during the last quarter. Institutional investors and hedge funds own 65.57% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have weighed in on CHH. Morgan Stanley cut their price target on Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Robert W. Baird set a $128.00 price target on shares of Choice Hotels International in a research report on Monday, May 11th. JPMorgan Chase & Co. boosted their price objective on Choice Hotels International from $116.00 to $118.00 and gave the stock a "neutral" rating in a research note on Tuesday, July 21st. Weiss Ratings restated a "hold (c)" rating on shares of Choice Hotels International in a research note on Tuesday, July 7th. Finally, Truist Financial dropped their price target on shares of Choice Hotels International from $129.00 to $128.00 and set a "buy" rating on the stock in a research note on Tuesday, May 26th. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. According to MarketBeat.com, Choice Hotels International has an average rating of "Reduce" and a consensus target price of $111.00.

Insider Buying and Selling

In other news, CFO Scott E. Oaksmith sold 2,000 shares of Choice Hotels International stock in a transaction that occurred 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 completion of the transaction, the chief financial officer owned 35,172 shares in the company, valued at approximately $3,868,920. This trade represents a 5.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 23.87% of the stock is currently owned by corporate insiders.

Choice Hotels International Trading Up 1.5%

NYSE CHH opened at $114.78 on Wednesday. The company has a market capitalization of $5.22 billion, a price-to-earnings ratio of 15.47, a price-to-earnings-growth ratio of 4.49 and a beta of 0.67. The company has a debt-to-equity ratio of 14.58, a current ratio of 0.95 and a quick ratio of 0.95. Choice Hotels International, Inc. has a 12 month low of $84.04 and a 12 month high of $133.52. The company's fifty day moving average price is $110.80 and its two-hundred day moving average price is $108.16.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share for the quarter, missing the consensus estimate of $1.35 by ($0.28). The company had revenue of $340.57 million during the quarter, compared to the consensus estimate of $333.48 million. Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.Choice Hotels International's revenue for the quarter was up 2.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.34 EPS. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. As a group, research analysts predict that Choice Hotels International, Inc. will post 7.14 earnings per share for the current fiscal year.

Choice Hotels International Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st were issued a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend was Wednesday, July 1st. Choice Hotels International's dividend payout ratio (DPR) is currently 15.50%.

Choice Hotels International 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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