Choice Hotels International, Inc. $CHH Holdings Lessened by Rock Creek Group LLC

Key Points

• Rock Creek Group cut its Choice Hotels stake by 50.4% in the third quarter, selling 333,300 shares and retaining 327,579 shares worth about $33.5 million.
• Choice Hotels beat quarterly estimates, reporting EPS of $2.33 versus $2.29 expected and revenue of $458.3 million versus $447.6 million expected; revenue rose 2.5% year over year.
• Analyst sentiment was mostly cautious: 10 analysts rated the stock Hold, while the consensus rating was “Reduce” and the average price target was $115.69.

Rock Creek Group LLC lessened its stake in Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 50.4% in the 3rd quarter, according to its most recent filing with the SEC. The firm owned 327,579 shares of the company's stock after selling 333,300 shares during the quarter. Choice Hotels International accounts for approximately 3.2% of Rock Creek Group LLC's portfolio, making the stock its 14th biggest position. Rock Creek Group LLC owned approximately 0.74% of Choice Hotels International worth $33,547,000 at the end of the most recent reporting period.

Several other institutional investors have also modified their holdings of CHH. Wellington Management Group LLP lifted its stake in Choice Hotels International by 1.7% during the second quarter. Wellington Management Group LLP now owns 669,693 shares of the company's stock worth $73,847,000 after purchasing an additional 11,366 shares during the last quarter. Fort Washington Investment Advisors Inc. OH grew its position in Choice Hotels International by 0.3% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 360,728 shares of the company's stock worth $36,942,000 after purchasing an additional 1,172 shares during the last quarter. Quantinno Capital Management LP increased its position in Choice Hotels International by 35.5% in the 1st quarter. Quantinno Capital Management LP now owns 258,355 shares of the company's stock valued at $26,740,000 after acquiring an additional 67,697 shares during the period. Janus Henderson Group PLC increased its holdings in shares of Choice Hotels International by 1,009.6% in the first quarter. Janus Henderson Group PLC now owns 139,550 shares of the company's stock valued at $14,445,000 after purchasing an additional 126,973 shares during the period. Finally, SummitTX Capital L.P. raised its position in Choice Hotels International by 247.3% during the 1st quarter. SummitTX Capital L.P. now owns 125,122 shares of the company's stock worth $12,950,000 after buying an additional 89,096 shares during the last quarter. 65.57% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CFO Scott E. Oaksmith sold 2,000 shares of the stock in a transaction dated Wednesday, November 4th. The shares were sold at an average price of $120.35, for a total value of $240,700.00. Following the completion of the transaction, the chief financial officer owned 31,172 shares in the company, valued at $3,751,550.20. This represents a 6.03% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, CEO Dominic Dragisich sold 1,227 shares of the company's stock in a transaction that occurred on 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 of the company's stock, valued at approximately $10,086,160. This represents a 1.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 8,284 shares of company stock worth $919,122 in the last three months. 23.87% of the stock is owned by insiders.

Choice Hotels International Stock Up 0.3%

Choice Hotels International stock traded up $0.30 during midday trading on Friday, hitting $118.58. 339,837 shares of the stock were exchanged, compared to its average volume of 611,918. The company has a debt-to-equity ratio of 16.52, a current ratio of 1.26 and a quick ratio of 1.26. Choice Hotels International, Inc. has a 1 year low of $84.04 and a 1 year high of $123.82. The company has a 50 day moving average price of $106.90 and a two-hundred day moving average price of $107.73. The firm has a market cap of $5.28 billion, a P/E ratio of 26.35, a P/E/G ratio of 2.81 and a beta of 0.65.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its quarterly earnings data on Monday, November 2nd. The company reported $2.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.29 by $0.04. The firm had revenue of $458.33 million for the quarter, compared to analysts' expectations of $447.56 million. Choice Hotels International had a return on equity of 216.71% and a net margin of 12.65%. Choice Hotels International's revenue for the quarter was up 2.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.10 earnings per share. On average, sell-side analysts predict that Choice Hotels International, Inc. will post 6.82 earnings per share for the current fiscal year.

Choice Hotels International Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were paid a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Thursday, October 1st. Choice Hotels International's payout ratio is presently 25.56%.

Analyst Ratings Changes

A number of brokerages have recently issued reports on CHH. Susquehanna increased their target price on Choice Hotels International from $110.00 to $115.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 11th. JPMorgan Chase & Co. lifted their price objective 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. Wedbush set a $130.00 target price on shares of Choice Hotels International in a report on Thursday, November 5th. Mizuho initiated coverage on Choice Hotels International in a report on Thursday, August 27th. They set a "neutral" rating and a $106.00 price objective on the stock. Finally, Truist Financial raised their target price on shares of Choice Hotels International from $128.00 to $129.00 and gave the stock a "buy" rating in a research report on Thursday, September 10th. Two investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Reduce" and a consensus price target of $115.69.

Choice Hotels International Profile

Choice Hotels International, Inc. is a hospitality company that primarily franchises hotels under a portfolio of brands serving a range of travelers, from economy and extended-stay guests to upscale customers. Its brands include Comfort, Quality Inn, Sleep Inn, Clarion, Cambria Hotels, Ascend Hotel Collection, Radisson, Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites. The company traces its roots to 1939, when a group of U.S. motel owners formed Quality Courts United, an organization that later became Choice Hotels.

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