Ethic Inc. Makes New Investment in Choice Hotels International, Inc. $CHH

Key Points

• Ethic Inc. has acquired a new stake of 4,961 shares in Choice Hotels International, valued at approximately $659,000 during the first quarter.
• Recent analyst reports show a mix of ratings and price targets for CHH, with JPMorgan Chase initiating coverage with an "underweight" rating and a $124 price objective.
• Choice Hotels reported earnings of $1.92 per share in its latest quarter, slightly beating analyst expectations of $1.90, despite a revenue decline of 2.0% year-over-year.

Ethic Inc. purchased a new position in Choice Hotels International, Inc. (NYSE:CHH - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund purchased 4,961 shares of the company's stock, valued at approximately $659,000.

Several other hedge funds have also added to or reduced their stakes in CHH. Barclays PLC lifted its stake in Choice Hotels International by 56.9% in the fourth quarter. Barclays PLC now owns 17,902 shares of the company's stock worth $2,541,000 after purchasing an additional 6,493 shares during the last quarter. Mariner LLC lifted its stake in Choice Hotels International by 19.4% in the fourth quarter. Mariner LLC now owns 2,697 shares of the company's stock worth $383,000 after purchasing an additional 439 shares during the last quarter. Guggenheim Capital LLC bought a new stake in Choice Hotels International in the fourth quarter worth $309,000. NewEdge Advisors LLC bought a new stake in Choice Hotels International in the fourth quarter worth $1,298,000. Finally, MetLife Investment Management LLC increased its position in shares of Choice Hotels International by 6.4% in the fourth quarter. MetLife Investment Management LLC now owns 13,704 shares of the company's stock valued at $1,946,000 after acquiring an additional 822 shares during the period. 65.57% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

CHH has been the topic of a number of analyst reports. Truist Financial decreased their price objective on shares of Choice Hotels International from $144.00 to $128.00 and set a "hold" rating on the stock in a research report on Friday, May 30th. Barclays decreased their price objective on shares of 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. JPMorgan Chase & Co. initiated coverage on shares of Choice Hotels International in a research report on Monday, June 23rd. They issued an "underweight" rating and a $124.00 price objective on the stock. Morgan Stanley restated an "underweight" rating and issued a $121.00 price objective on shares of Choice Hotels International in a research report on Tuesday, July 15th. Finally, Susquehanna set a $140.00 price objective on shares of Choice Hotels International and gave the company a "neutral" rating in a research report on Friday, May 16th. Three investment analysts have rated the stock with a Buy rating, six have given a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $133.38.

Choice Hotels International Stock Performance

Shares of NYSE CHH traded up $1.7790 during midday trading on Friday, hitting $121.6990. 339,201 shares of the company traded hands, compared to its average volume of 452,907. Choice Hotels International, Inc. has a 12-month low of $116.20 and a 12-month high of $157.86. The stock has a 50-day moving average price of $127.43 and a 200 day moving average price of $130.71. The firm has a market cap of $5.63 billion, a P/E ratio of 18.72, a P/E/G ratio of 2.30 and a beta of 0.96.

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

Insider Activity

In related news, EVP Dominic Dragisich sold 5,000 shares of the business's stock in a transaction dated Tuesday, July 1st. The shares were sold at an average price of $128.54, for a total transaction of $642,700.00. Following the transaction, the executive vice president owned 70,881 shares in the company, valued at $9,111,043.74. The trade was a 6.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders have sold a total of 12,500 shares of company stock worth $1,647,400 in the last 90 days. 23.78% of the stock is 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.