Choice Hotels International, Inc. $CHH Stock Holdings Lifted by Atom Investors LP

Key Points

• Atom Investors LP increased its stake in Choice Hotels International by 73% in the fourth quarter, adding 17,642 shares to bring its total to 41,816 shares valued at about $4 million.
• Choice Hotels reported mixed quarterly results: revenue of $340.58 million topped estimates, but earnings of $1.07 per share fell short of the $1.35 consensus.
• Insider and analyst sentiment appears cautious, with CFO Scott E. Oaksmith selling 2,000 shares and Wall Street maintaining a Reduce consensus rating with an average price target of $111.67.

Atom Investors LP raised its position in Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 73.0% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 41,816 shares of the company's stock after purchasing an additional 17,642 shares during the quarter. Atom Investors LP owned approximately 0.09% of Choice Hotels International worth $3,983,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of CHH. Eurizon Capital SGR S.p.A. purchased a new position in Choice Hotels International in the fourth quarter valued at about $27,000. Eagle Bay Advisors LLC bought a new stake in shares of Choice Hotels International during the 4th quarter worth about $28,000. Fifth Third Bancorp boosted its stake in shares of Choice Hotels International by 77.4% during the 4th quarter. Fifth Third Bancorp now owns 392 shares of the company's stock worth $37,000 after acquiring an additional 171 shares in the last quarter. UMB Bank n.a. boosted its stake in shares of Choice Hotels International by 6,416.7% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company's stock worth $37,000 after acquiring an additional 385 shares in the last quarter. Finally, Quarry LP bought a new stake in shares of Choice Hotels International during the 3rd quarter worth about $38,000. Hedge funds and other institutional investors own 65.57% of the company's stock.

Insider Buying and Selling at Choice Hotels International

In related news, CFO Scott E. Oaksmith sold 2,000 shares of the business's stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $110.00, for a total transaction of $220,000.00. Following the completion of the transaction, the chief financial officer owned 35,172 shares of the company's stock, valued at approximately $3,868,920. The trade was a 5.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 24.02% of the company's stock.

Choice Hotels International Price Performance

NYSE CHH opened at $116.17 on Wednesday. Choice Hotels International, Inc. has a twelve month low of $84.04 and a twelve month high of $136.45. The company has a debt-to-equity ratio of 14.58, a quick ratio of 0.95 and a current ratio of 0.95. The stock has a market capitalization of $5.28 billion, a PE ratio of 15.66, a P/E/G ratio of 5.36 and a beta of 0.67. The stock has a 50-day simple moving average of $111.21 and a 200 day simple moving average of $104.44.

Choice Hotels International (NYSE:CHH - Get Free Report) last posted its quarterly earnings data 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). Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.The business had revenue of $340.58 million for the quarter, compared to analyst estimates of $333.48 million. During the same period in the prior year, the firm posted $1.34 EPS. Choice Hotels International's revenue for the quarter was up 2.3% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. Research analysts anticipate that Choice Hotels International, Inc. will post 7.11 EPS for the current year.

Choice Hotels International Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 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, July 1st. Choice Hotels International's payout ratio is currently 15.50%.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on CHH. Morgan Stanley decreased their price target on Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a research note on Tuesday, May 12th. Barclays decreased their price target on Choice Hotels International from $112.00 to $100.00 and set an "underweight" rating for the company in a research note on Thursday, April 30th. JPMorgan Chase & Co. decreased their price target on Choice Hotels International from $117.00 to $116.00 and set a "neutral" rating for the company in a research note on Wednesday, May 6th. Wells Fargo & Company upped their price target on Choice Hotels International from $91.00 to $110.00 and gave the stock an "underweight" rating in a research note on Friday, February 20th. Finally, Truist Financial decreased their price target on Choice Hotels International from $129.00 to $128.00 and set a "buy" rating for the company in a research note on Tuesday, May 26th. Two analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $111.67.

About Choice Hotels International

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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