Choice Hotels International, Inc. $CHH Stock Position Lowered by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC significantly reduced its stake in Choice Hotels International by 49.3% in the first quarter, after selling over 10,000 shares, leaving them with a holding valued at approximately $1.4 million.
• Choice Hotels reported a quarterly earnings per share (EPS) of $1.92, exceeding estimates, but faced a 2.0% decline in revenue year-over-year, totaling $426.44 million.
• Wall Street analysts have mixed views on the stock, with an average target price of $133.38, where three analysts rated it as a Buy, while others have issued Hold and Sell ratings.

Hsbc Holdings PLC lowered its stake in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 49.3% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 10,590 shares of the company's stock after selling 10,286 shares during the quarter. Hsbc Holdings PLC's holdings in Choice Hotels International were worth $1,405,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. UMB Bank n.a. boosted its position in Choice Hotels International by 66.2% during the 1st quarter. UMB Bank n.a. now owns 256 shares of the company's stock valued at $34,000 after purchasing an additional 102 shares during the period. HM Payson & Co. acquired a new position in Choice Hotels International during the 1st quarter valued at approximately $35,000. Signaturefd LLC boosted its position in Choice Hotels International by 64.7% during the 1st quarter. Signaturefd LLC now owns 275 shares of the company's stock valued at $37,000 after purchasing an additional 108 shares during the period. Quarry LP increased its position in Choice Hotels International by 25.6% in the 4th quarter. Quarry LP now owns 604 shares of the company's stock valued at $86,000 after acquiring an additional 123 shares during the period. Finally, Caitong International Asset Management Co. Ltd increased its position in Choice Hotels International by 1,694.6% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 664 shares of the company's stock valued at $88,000 after acquiring an additional 627 shares during the period. Institutional investors and hedge funds own 65.57% of the company's stock.

Choice Hotels International Stock Up 0.3%

Choice Hotels International stock traded up $0.31 during mid-day trading on Wednesday, hitting $117.13. The company's stock had a trading volume of 374,877 shares, compared to its average volume of 408,090. The stock has a market capitalization of $5.42 billion, a P/E ratio of 18.02, a P/E/G ratio of 2.26 and a beta of 0.90. Choice Hotels International, Inc. has a twelve month low of $116.20 and a twelve month high of $157.86. The stock's fifty day moving average price is $126.60 and its two-hundred day moving average price is $129.07.

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

Analysts Set New Price Targets

Several research firms recently commented on CHH. Barclays lowered their target price on Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating on the stock in a research report on Thursday, August 7th. Susquehanna set a $140.00 target price on Choice Hotels International and gave the company a "neutral" rating in a research report on Friday, May 16th. JPMorgan Chase & Co. began coverage on Choice Hotels International in a research report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 target price on the stock. Morgan Stanley restated an "underweight" rating and issued a $121.00 target price on shares of Choice Hotels International in a research report on Tuesday, July 15th. Finally, Robert W. Baird lowered their target price on Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a research report on Friday, August 22nd. Three analysts have rated the stock with a Buy rating, six have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, Choice Hotels International presently has an average rating of "Reduce" and a consensus target price of $133.38.

Insider Activity at Choice Hotels International

In other news, EVP Dominic Dragisich sold 2,500 shares of the company's stock in a transaction 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 sale, the executive vice president directly owned 68,381 shares of the company's stock, valued at $9,330,587.45. This represents a 3.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders sold 12,500 shares of company stock worth $1,647,400 over the last three months. Corporate insiders own 24.02% of the company's stock.

Choice Hotels International Company Profile

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.