Zacks Research Analysts Raise Earnings Estimates for CHH

Key Points

• Zacks Research raised its Q3 2026 EPS estimate for Choice Hotels International to $2.35 from $2.18, signaling a more optimistic outlook for the company’s near-term earnings.
• Despite the higher estimate, analyst sentiment remains cautious overall: the stock has a consensus rating of “Reduce” with an average price target of $111.75, below its recent trading level.
• Choice Hotels recently missed quarterly EPS expectations by reporting $1.07 versus the $1.35 consensus, even though revenue came in above estimates at $340.58 million.

Choice Hotels International, Inc. (NYSE:CHH - Free Report) - Equities research analysts at Zacks Research raised their Q3 2026 earnings estimates for Choice Hotels International in a research report issued on Thursday, May 21st. Zacks Research analyst Team now forecasts that the company will post earnings of $2.35 per share for the quarter, up from their prior estimate of $2.18. The consensus estimate for Choice Hotels International's current full-year earnings is $7.13 per share. Zacks Research also issued estimates for Choice Hotels International's Q1 2027 earnings at $1.23 EPS, Q3 2027 earnings at $2.39 EPS, Q4 2027 earnings at $1.89 EPS, Q1 2028 earnings at $1.36 EPS and FY2028 earnings at $8.16 EPS.

A number of other analysts have also recently weighed in on CHH. Deutsche Bank Aktiengesellschaft set a $114.00 target price on shares of Choice Hotels International in a report on Monday, May 4th. JPMorgan Chase & Co. lowered their price target 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 lowered their price target on shares of Choice Hotels International from $112.00 to $100.00 and set an "underweight" rating for the company in a research report on Thursday, April 30th. Truist Financial upped their price target on shares of Choice Hotels International from $126.00 to $129.00 and gave the stock a "buy" rating in a research report on Thursday, March 26th. Finally, Morgan Stanley lowered their price target on shares of Choice Hotels International from $87.00 to $86.00 and set an "underweight" rating for the company in a research report on Tuesday, May 12th. Two investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $111.75.

Choice Hotels International Stock Up 0.1%

Shares of NYSE:CHH opened at $113.27 on Monday. The stock has a market capitalization of $5.15 billion, a price-to-earnings ratio of 15.27, a price-to-earnings-growth ratio of 2.08 and a beta of 0.65. Choice Hotels International has a 1-year low of $84.04 and a 1-year high of $136.45. The company's fifty day moving average is $107.64 and its two-hundred day moving average is $102.44. 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 quarterly earnings results on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.35 by ($0.28). The company had revenue of $340.58 million during the quarter, compared to the consensus estimate of $333.48 million. Choice Hotels International had a return on equity of 281.98% and a net margin of 21.55%.The firm's quarterly revenue was up 2.3% on a year-over-year basis. During the same quarter last year, the firm posted $1.34 EPS. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS.

Choice Hotels International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be issued a $0.2875 dividend. This represents a $1.15 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date of this dividend is Wednesday, July 1st. Choice Hotels International's dividend payout ratio is presently 15.50%.

Insiders Place Their Bets

In other Choice Hotels International news, CFO Scott E. Oaksmith sold 1,603 shares of the company'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 of the company's stock, valued at approximately $3,717,200. This represents a 4.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 23.78% of the company's stock.

Institutional Investors Weigh In On Choice Hotels International

Institutional investors and hedge funds have recently bought and sold shares of the business. Bamco Inc. NY raised its holdings in Choice Hotels International by 37.8% during the 4th quarter. Bamco Inc. NY now owns 7,386,575 shares of the company's stock worth $703,645,000 after buying an additional 2,026,679 shares during the period. Goldman Sachs Group Inc. raised its holdings in Choice Hotels International by 151.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company's stock worth $48,833,000 after buying an additional 308,771 shares during the period. Norges Bank acquired a new stake in Choice Hotels International during the 4th quarter worth about $28,910,000. Wellington Management Group LLP raised its holdings in Choice Hotels International by 55.1% during the 4th quarter. Wellington Management Group LLP now owns 574,630 shares of the company's stock worth $54,739,000 after buying an additional 204,146 shares during the period. Finally, Tudor Investment Corp ET AL raised its holdings in Choice Hotels International by 208.1% during the 4th quarter. Tudor Investment Corp ET AL now owns 280,513 shares of the company's stock worth $26,722,000 after buying an additional 189,464 shares during the period. 65.57% of the stock is owned by institutional investors and hedge funds.

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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