Zacks Research Has Bearish Forecast for CHH FY2025 Earnings

Key Points

• Zacks Research has lowered its earnings estimates for Choice Hotels International for FY2025, predicting earnings of $6.96 per share, down from a previous estimate of $7.03.
• Various analysts have adjusted their price targets, with UBS Group lowering theirs from $160.00 to $149.00, while Barclays reduced their target from $121.00 to $117.00, both recommending a neutral or underweight rating on the stock.

Choice Hotels International, Inc. (NYSE:CHH - Free Report) - Equities research analysts at Zacks Research reduced their FY2025 earnings estimates for Choice Hotels International in a research note issued to investors on Wednesday, September 3rd. Zacks Research analyst Team now expects that the company will post earnings of $6.96 per share for the year, down from their prior forecast of $7.03. The consensus estimate for Choice Hotels International's current full-year earnings is $7.07 per share. Zacks Research also issued estimates for Choice Hotels International's Q4 2025 earnings at $1.57 EPS, Q1 2026 earnings at $1.42 EPS, Q2 2026 earnings at $1.93 EPS, Q3 2026 earnings at $2.09 EPS, Q4 2026 earnings at $1.73 EPS, FY2026 earnings at $7.18 EPS, Q1 2027 earnings at $1.46 EPS, Q2 2027 earnings at $2.14 EPS and FY2027 earnings at $7.57 EPS.

Choice Hotels International (NYSE:CHH - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $1.92 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 business had revenue of $426.44 million for the quarter, compared to analyst estimates of $430.13 million. During the same period in the previous year, the business posted $1.84 earnings per share. The business's revenue was down 2.0% compared to the same quarter last year.

Several other brokerages have also weighed in on CHH. Truist Financial lowered their target price 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. UBS Group lowered their target price on shares of Choice Hotels International from $160.00 to $149.00 and set a "neutral" rating on the stock in a research report on Thursday, July 10th. Morgan Stanley restated an "underweight" rating and set a $121.00 target price on shares of Choice Hotels International in a research report on Tuesday, July 15th. Robert W. Baird lowered their target price on shares of Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating on the stock in a research report on Friday, August 22nd. Finally, Susquehanna set a $140.00 target price on shares of Choice Hotels International and gave the stock a "neutral" rating in a research report on Friday, May 16th. Three 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. Based on data from MarketBeat, the stock presently has a consensus rating of "Reduce" and a consensus target price of $133.38.

Choice Hotels International Stock Performance

CHH traded down $0.65 on Thursday, hitting $114.12. 84,625 shares of the company were exchanged, compared to its average volume of 421,075. The business's fifty day moving average is $125.95 and its 200 day moving average is $128.10. Choice Hotels International has a fifty-two week low of $112.31 and a fifty-two week high of $157.86. The firm has a market capitalization of $5.28 billion, a P/E ratio of 17.56, a price-to-earnings-growth ratio of 2.20 and a beta of 0.90.

Insider Activity

In other news, EVP Dominic Dragisich sold 2,500 shares of the stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $136.45, for a total value of $341,125.00. Following the completion of the sale, the executive vice president owned 68,381 shares of the company's stock, valued at $9,330,587.45. This represents a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have sold a total of 12,500 shares of company stock valued at $1,647,400 over the last ninety days. 24.02% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Choice Hotels International

Several large investors have recently made changes to their positions in CHH. Northern Trust Corp increased its position in shares of Choice Hotels International by 10.3% in the fourth quarter. Northern Trust Corp now owns 267,256 shares of the company's stock worth $37,945,000 after acquiring an additional 24,957 shares in the last quarter. Jane Street Group LLC increased its position in shares of Choice Hotels International by 1.0% in the 4th quarter. Jane Street Group LLC now owns 26,412 shares of the company's stock worth $3,750,000 after purchasing an additional 266 shares during the last quarter. BNP Paribas Financial Markets increased its position in shares of Choice Hotels International by 91.3% in the 4th quarter. BNP Paribas Financial Markets now owns 53,034 shares of the company's stock worth $7,530,000 after purchasing an additional 25,315 shares during the last quarter. Cary Street Partners Financial LLC bought a new stake in shares of Choice Hotels International in the 4th quarter worth about $242,000. Finally, Captrust Financial Advisors increased its position in shares of Choice Hotels International by 4.5% in the 4th quarter. Captrust Financial Advisors now owns 2,069 shares of the company's stock worth $294,000 after purchasing an additional 90 shares during the last quarter. Institutional investors and hedge funds own 65.57% of the company's stock.

About Choice Hotels International

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.