Royal Bank of Canada Cuts Position in Choice Hotels International, Inc. $CHH

Key Points

• Royal Bank of Canada reduced its stake in Choice Hotels International by 2.2%, now owning about 0.32% of the company, valued at approximately $19.57 million.
• Choice Hotels International reported a quarterly earnings per share of $1.92, slightly exceeding analyst expectations, but also a 2.0% decline in revenue year-over-year.
• Multiple analysts have issued new price targets for the stock, with a consensus target of $133.38, indicating a generally cautious outlook on the company's performance.

Royal Bank of Canada lowered its stake in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 2.2% in the first quarter, according to its most recent 13F filing with the SEC. The fund owned 147,377 shares of the company's stock after selling 3,247 shares during the period. Royal Bank of Canada owned about 0.32% of Choice Hotels International worth $19,568,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the stock. UMB Bank n.a. increased its stake in shares of Choice Hotels International by 66.2% in 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 in the last quarter. HM Payson & Co. purchased a new position in shares of Choice Hotels International in the 1st quarter valued at about $35,000. Signaturefd LLC increased its stake in shares of Choice Hotels International by 64.7% in the 1st quarter. Signaturefd LLC now owns 275 shares of the company's stock valued at $37,000 after purchasing an additional 108 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its stake in shares of 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 purchasing an additional 627 shares in the last quarter. Finally, Skandinaviska Enskilda Banken AB publ increased its stake in shares of Choice Hotels International by 133.2% in the 1st quarter. Skandinaviska Enskilda Banken AB publ now owns 1,026 shares of the company's stock valued at $136,000 after purchasing an additional 586 shares in the last quarter. Hedge funds and other institutional investors own 65.57% of the company's stock.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Morgan Stanley reiterated an "underweight" rating and issued a $121.00 price objective on shares of Choice Hotels International in a report on Tuesday, July 15th. Barclays lowered their price objective on Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating on the stock in a report on Thursday, August 7th. UBS Group lowered their price objective on Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating on the stock in a report on Thursday, July 10th. JPMorgan Chase & Co. initiated coverage on Choice Hotels International in a report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 price objective on the stock. 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 report on Friday, August 22nd. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, Choice Hotels International has a consensus rating of "Reduce" and a consensus price target of $133.38.

Choice Hotels International Stock Down 2.0%

Shares of Choice Hotels International stock traded down $2.27 on Friday, hitting $112.85. 359,968 shares of the company were exchanged, compared to its average volume of 389,045. The stock has a market capitalization of $5.22 billion, a price-to-earnings ratio of 17.36, a price-to-earnings-growth ratio of 2.17 and a beta of 0.90. The company has a 50-day moving average price of $124.56 and a 200 day moving average price of $127.41. Choice Hotels International, Inc. has a 1-year low of $111.42 and a 1-year high of $157.86.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its quarterly 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. The firm had revenue of $426.44 million for the quarter, compared to analyst estimates of $430.13 million. Choice Hotels International had a net margin of 19.52% and a negative return on equity of 575.73%. The business's revenue for the quarter was down 2.0% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.84 EPS. Research analysts forecast that Choice Hotels International, Inc. will post 7.07 EPS for the current year.

Choice Hotels International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 16th. Stockholders of record on Wednesday, October 1st will be given a dividend of $0.2875 per share. This represents a $1.15 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Wednesday, October 1st. Choice Hotels International's payout ratio is presently 17.69%.

Insider Activity at Choice Hotels International

In other news, EVP Dominic Dragisich sold 2,500 shares of Choice Hotels International stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $136.45, for a total transaction of $341,125.00. Following the sale, the executive vice president owned 68,381 shares of the company's stock, valued at approximately $9,330,587.45. The trade was a 3.53% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Over the last 90 days, insiders have sold 12,500 shares of company stock worth $1,647,400. 23.78% of the stock is currently owned by insiders.

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.