Zacks Research Issues Negative Outlook for CHH Earnings

Key Points

• Zacks Research has revised its Q3 2025 earnings per share estimate for Choice Hotels International from $2.16 to $2.13, indicating a pessimistic outlook.
• Despite a slight earnings beat in Q2 2025, with reported earnings per share of $1.92, the company's revenue of $426.44 million fell short of expectations.
• Choice Hotels has seen multiple analysts decrease their price targets, with an average target now set at $133.38, reflecting mixed sentiments towards the company's stock performance.

Choice Hotels International, Inc. (NYSE:CHH - Free Report) - Investment analysts at Zacks Research lowered their Q3 2025 earnings estimates for shares of Choice Hotels International in a note issued to investors on Wednesday, September 3rd. Zacks Research analyst Team now forecasts that the company will post earnings per share of $2.13 for the quarter, down from their previous estimate of $2.16. The consensus estimate for Choice Hotels International's current full-year earnings is $7.07 per share.

A number of other brokerages also recently issued reports on CHH. Susquehanna set a $140.00 price target on shares of Choice Hotels International and gave the company a "neutral" rating in a report on Friday, May 16th. Barclays cut their price target on shares of Choice Hotels International from $121.00 to $117.00 and set an "underweight" rating for the company in a report on Thursday, August 7th. Morgan Stanley reiterated an "underweight" rating and issued a $121.00 price target on shares of Choice Hotels International in a report on Tuesday, July 15th. Truist Financial cut their price target on shares of Choice Hotels International from $144.00 to $128.00 and set a "hold" rating for the company in a report on Friday, May 30th. Finally, Robert W. Baird cut their target price on shares of Choice Hotels International from $144.00 to $136.00 and set an "outperform" rating for the company in a research report on Friday, August 22nd. Three research analysts have rated the stock with a Buy rating, six have given a Hold rating and four have given a Sell rating to the company's stock. According to MarketBeat.com, Choice Hotels International has a consensus rating of "Reduce" and a consensus price target of $133.38.

Choice Hotels International Trading Down 1.6%

Shares of CHH traded down $1.90 during trading hours on Friday, reaching $114.93. The company had a trading volume of 666,586 shares, compared to its average volume of 372,760. The firm has a 50 day simple moving average of $125.95 and a 200-day simple moving average of $128.10. The company has a market capitalization of $5.32 billion, a price-to-earnings ratio of 17.68, a PEG ratio of 2.20 and a beta of 0.90. Choice Hotels International has a 12-month low of $112.31 and a 12-month high of $157.86.

Choice Hotels International (NYSE:CHH - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $1.92 EPS for the quarter, topping the consensus estimate 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 company had revenue of $426.44 million during the quarter, compared to analysts' expectations of $430.13 million. During the same quarter last year, the business earned $1.84 EPS. The business's revenue was down 2.0% on a year-over-year basis.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Squarepoint Ops LLC acquired a new position in shares of Choice Hotels International during the second quarter worth $5,020,000. Clarion Wealth Managment Partners LLC acquired a new position in shares of Choice Hotels International during the second quarter worth $263,000. FORA Capital LLC acquired a new position in shares of Choice Hotels International during the second quarter worth $973,000. State of Tennessee Department of Treasury lifted its position in shares of Choice Hotels International by 14.7% during the second quarter. State of Tennessee Department of Treasury now owns 7,808 shares of the company's stock worth $991,000 after purchasing an additional 1,000 shares in the last quarter. Finally, Teza Capital Management LLC lifted its position in shares of Choice Hotels International by 5.0% during the second quarter. Teza Capital Management LLC now owns 2,051 shares of the company's stock worth $260,000 after purchasing an additional 98 shares in the last quarter. 65.57% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Choice Hotels International

In other news, EVP Dominic Dragisich sold 2,500 shares of the business's stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $136.45, for a total transaction of $341,125.00. Following the transaction, the executive vice president directly owned 68,381 shares of the company's stock, valued at approximately $9,330,587.45. The trade was a 3.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders have sold 12,500 shares of company stock worth $1,647,400 in the last ninety days. 24.02% of the stock is owned by insiders.

Choice Hotels International Company Profile

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.