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

Key Points

• Norges Bank initiated a new position in Choice Hotels International, buying 303,488 shares valued at about $28.9 million, or roughly 0.66% of the company.
• Choice Hotels shares were up 2.9% to $108.52, and the company currently has a market cap of about $4.94 billion with a P/E ratio of 14.63.
• The company reported Q1 EPS of $1.07, missing estimates, while revenue came in at $340.58 million and rose 2.3% year over year. Choice Hotels also announced a quarterly dividend of $0.2875 per share, payable July 15.

Norges Bank bought a new position in shares of Choice Hotels International, Inc. (NYSE:CHH - Free Report) in the fourth quarter, according to the company in its most recent filing with the SEC. The institutional investor bought 303,488 shares of the company's stock, valued at approximately $28,910,000. Norges Bank owned approximately 0.66% of Choice Hotels International at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in CHH. Eurizon Capital SGR S.p.A. bought a new position in Choice Hotels International during the 4th quarter worth about $27,000. Eagle Bay Advisors LLC bought a new position in shares of Choice Hotels International in the 4th quarter valued at about $28,000. Fifth Third Bancorp grew its holdings in shares of Choice Hotels International by 77.4% in the 4th quarter. Fifth Third Bancorp now owns 392 shares of the company's stock valued at $37,000 after acquiring an additional 171 shares in the last quarter. Quarry LP bought a new position in shares of Choice Hotels International in the 3rd quarter valued at about $38,000. Finally, Bayforest Capital Ltd bought a new position in shares of Choice Hotels International in the 4th quarter valued at about $42,000. Institutional investors own 65.57% of the company's stock.

Choice Hotels International Trading Up 2.9%

Shares of NYSE:CHH opened at $108.52 on Wednesday. Choice Hotels International, Inc. has a 52-week low of $84.04 and a 52-week high of $136.45. The company has a market capitalization of $4.94 billion, a P/E ratio of 14.63, a price-to-earnings-growth ratio of 5.04 and a beta of 0.67. The company has a 50-day simple moving average of $110.53 and a 200 day simple moving average of $103.74. The company has a debt-to-equity ratio of 14.58, a quick ratio of 0.95 and a current ratio of 0.95.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.28). Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The firm had revenue of $340.58 million during the quarter, compared to analyst estimates of $333.48 million. During the same quarter last year, the business posted $1.34 earnings per share. The company'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. Sell-side analysts forecast that Choice Hotels International, Inc. will post 7.11 earnings per share for the current year.

Choice Hotels International Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Wednesday, July 1st will be paid a $0.2875 dividend. This represents a $1.15 annualized dividend and a yield of 1.1%. The ex-dividend date is Wednesday, July 1st. Choice Hotels International's dividend payout ratio (DPR) is 15.50%.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on the company. Truist Financial decreased their price objective on Choice Hotels International from $129.00 to $128.00 and set a "buy" rating for the company in a report on Tuesday, May 26th. Morgan Stanley decreased their price objective on Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a report on Tuesday, May 12th. Susquehanna decreased their price objective on Choice Hotels International from $115.00 to $110.00 and set a "neutral" rating for the company in a report on Monday, May 4th. JPMorgan Chase & Co. decreased their price objective on Choice Hotels International from $117.00 to $116.00 and set a "neutral" rating for the company in a report on Wednesday, May 6th. Finally, Robert W. Baird set a $128.00 price objective on Choice Hotels International in a report on Monday, May 11th. 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's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Reduce" and an average target price of $111.67.

Insider Transactions at Choice Hotels International

In related news, CFO Scott E. Oaksmith sold 1,603 shares of the firm's stock in a transaction dated Wednesday, March 18th. The shares were sold at an average price of $100.00, for a total value of $160,300.00. Following the completion of the sale, the chief financial officer directly owned 37,172 shares in the company, valued at approximately $3,717,200. This trade represents a 4.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 24.02% of the company's stock.

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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