Hsbc Holdings PLC Sells 13,099 Shares of Choice Hotels International, Inc. $CHH

Key Points

• Hsbc Holdings PLC reduced its Choice Hotels International stake by 75% in the first quarter, selling 13,099 shares and retaining 4,363 shares valued at approximately $448,000.
• Choice Hotels reported first-quarter EPS of $1.07, below the $1.35 consensus estimate, while revenue of $340.57 million exceeded expectations and rose 2.3% year over year.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating and a $111 price target, near its reported trading price of $111.73. The company also pays a quarterly dividend of $0.2875 per share, representing a 1.0% yield.

Hsbc Holdings PLC lessened its holdings in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) by 75.0% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,363 shares of the company's stock after selling 13,099 shares during the quarter. Hsbc Holdings PLC's holdings in Choice Hotels International were worth $448,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also recently modified their holdings of the business. Bamco Inc. NY increased its stake in shares of 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 purchasing an additional 2,026,679 shares in the last quarter. Vanguard Group Inc. lifted its position in Choice Hotels International by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 2,331,972 shares of the company's stock valued at $222,144,000 after purchasing an additional 27,032 shares in the last quarter. Wellington Management Group LLP lifted its position in Choice Hotels International by 55.1% during 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. Goldman Sachs Group Inc. grew its holdings in Choice Hotels International by 151.5% during the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company's stock valued at $48,833,000 after purchasing an additional 308,771 shares during the period. Finally, Geode Capital Management LLC grew its holdings in Choice Hotels International by 1.5% during the fourth quarter. Geode Capital Management LLC now owns 431,916 shares of the company's stock valued at $41,151,000 after purchasing an additional 6,422 shares during the period. Institutional investors own 65.57% of the company's stock.

Choice Hotels International Price Performance

NYSE:CHH opened at $111.73 on Friday. The company has a quick ratio of 0.95, a current ratio of 0.95 and a debt-to-equity ratio of 14.58. The business's 50-day simple moving average is $110.84 and its two-hundred day simple moving average is $108.28. The stock has a market cap of $5.08 billion, a PE ratio of 15.06, a P/E/G ratio of 4.43 and a beta of 0.67. Choice Hotels International, Inc. has a 52 week low of $84.04 and a 52 week high of $129.88.

Choice Hotels International (NYSE:CHH - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.07 EPS for the quarter, missing the consensus estimate of $1.35 by ($0.28). The business had revenue of $340.57 million during 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%. Choice Hotels International's revenue was up 2.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.34 earnings per share. As a group, analysts forecast that Choice Hotels International, Inc. will post 7.14 EPS for the current fiscal year.

Choice Hotels International Announces Dividend

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

Insider Transactions at Choice Hotels International

In related news, CFO Scott E. Oaksmith sold 2,000 shares of the business's stock in a transaction that occurred on Friday, June 12th. The stock was sold at an average price of $110.00, for a total value of $220,000.00. Following the transaction, the chief financial officer directly 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 link. Company insiders own 23.87% of the company's stock.

Analyst Ratings Changes

CHH has been the topic of several recent research reports. Barclays raised their price objective on Choice Hotels International from $100.00 to $101.00 and gave the stock an "underweight" rating in a research note on Monday, July 20th. Robert W. Baird set a $128.00 price objective on Choice Hotels International in a research note on Monday, May 11th. Morgan Stanley reduced their target price on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Weiss Ratings restated a "hold (c)" rating on shares of Choice Hotels International in a research note on Tuesday, July 7th. Finally, Susquehanna lowered their price target on shares of Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. Two equities research 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. According to MarketBeat, Choice Hotels International has an average rating of "Reduce" and an average target price of $111.00.

Choice Hotels International 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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