Heartland Advisors Inc. Invests $6.45 Million in Choice Hotels International, Inc. $CHH

Key Points

• Heartland Advisors opened a new position in Choice Hotels International in the first quarter, buying 62,336 shares worth about $6.45 million.
• Institutional interest in CHH remains high, with 65.57% of the stock owned by institutional investors. Several large funds increased their stakes, including Bamco, Goldman Sachs, Norges Bank, Wellington Management, and Tudor Investment.
• Analysts are cautious on the stock: the consensus rating is “Reduce” with an average price target of $110.75. Meanwhile, CFO Scott E. Oaksmith sold 2,000 shares at $110 each, and the company recently reported earnings that missed EPS estimates despite slightly beating revenue expectations.

Heartland Advisors Inc. bought a new position in Choice Hotels International, Inc. (NYSE:CHH - Free Report) during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 62,336 shares of the company's stock, valued at approximately $6,452,000. Heartland Advisors Inc. owned approximately 0.14% of Choice Hotels International at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bamco Inc. NY increased its stake in Choice Hotels International by 37.8% in the 4th quarter. Bamco Inc. NY now owns 7,386,575 shares of the company's stock worth $703,645,000 after acquiring an additional 2,026,679 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in shares of Choice Hotels International by 151.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company's stock valued at $48,833,000 after acquiring an additional 308,771 shares during the last quarter. Norges Bank bought a new position in shares of Choice Hotels International during the 4th quarter valued at approximately $28,910,000. Wellington Management Group LLP grew its holdings in shares of Choice Hotels International by 55.1% in the fourth quarter. Wellington Management Group LLP now owns 574,630 shares of the company's stock valued at $54,739,000 after purchasing an additional 204,146 shares in the last quarter. Finally, Tudor Investment Corp ET AL grew its holdings in shares of Choice Hotels International by 208.1% in the fourth quarter. Tudor Investment Corp ET AL now owns 280,513 shares of the company's stock valued at $26,722,000 after purchasing an additional 189,464 shares in the last quarter. 65.57% of the stock is owned by institutional investors.

Analyst Ratings Changes

CHH has been the topic of several research reports. Morgan Stanley reduced their price target on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating on the stock in a research report on Tuesday, May 12th. JPMorgan Chase & Co. lowered their price objective on shares of Choice Hotels International from $117.00 to $116.00 and set a "neutral" rating for the company in a research report on Wednesday, May 6th. Barclays dropped their price objective on shares of 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. Truist Financial reduced their target price on shares of Choice Hotels International from $129.00 to $128.00 and set a "buy" rating on the stock in a report on Tuesday, May 26th. Finally, Robert W. Baird set a $128.00 target price on shares of Choice Hotels International in a research report on Monday, May 11th. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, Choice Hotels International has an average rating of "Reduce" and a consensus target price of $110.75.

Insider Buying and Selling at Choice Hotels International

In other news, CFO Scott E. Oaksmith sold 2,000 shares of the firm's stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $110.00, for a total value of $220,000.00. Following the completion of the sale, the chief financial officer owned 35,172 shares in the company, valued at approximately $3,868,920. This trade represents a 5.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 23.87% of the company's stock.

Choice Hotels International Price Performance

Shares of Choice Hotels International stock opened at $111.65 on Monday. The stock has a market cap of $5.08 billion, a price-to-earnings ratio of 15.05, a price-to-earnings-growth ratio of 5.35 and a beta of 0.67. 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 50 day moving average price of $110.20 and a 200-day moving average price of $107.57. Choice Hotels International, Inc. has a one year low of $84.04 and a one year high of $136.45.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its quarterly earnings results 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). The company had revenue of $340.57 million for the quarter, compared to analysts' expectations of $333.48 million. Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The business's quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.34 EPS. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS. Equities analysts expect that Choice Hotels International, Inc. will post 7.11 EPS for the current year.

Choice Hotels International Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Wednesday, July 1st were paid a $0.2875 dividend. The ex-dividend date of this dividend was Wednesday, July 1st. This represents a $1.15 annualized dividend and a dividend yield of 1.0%. Choice Hotels International's dividend payout ratio is currently 15.50%.

Choice Hotels International Company Profile

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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