Zacks Investment Research Downgrades Choice Hotels International Inc. (CHH) to Sell
According to Zacks, “Choice Hotels Int’l. is one of the largest hotel franchise companies in the world with hotels, inns, all-suite hotels and resorts open and under development in countries across the globe under the brand names Comfort, Quality, Clarion, Sleep Inn, Rodeway Inn, Econo Lodge and MainStay Suites. “
Several other equities research analysts also recently issued reports on the company. Bank of America Corp. reiterated a buy rating on shares of Choice Hotels International in a report on Monday, July 18th. Wolfe Research started coverage on Choice Hotels International in a report on Wednesday, July 6th. They set a market perform rating for the company. Morgan Stanley reiterated a sell rating and set a $48.00 price target on shares of Choice Hotels International in a report on Wednesday, August 3rd. Finally, Deutsche Bank AG reiterated a hold rating on shares of Choice Hotels International in a report on Sunday, June 26th. Three analysts have rated the stock with a sell rating, five have given a hold rating and two have given a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus price target of $48.78.
Shares of Choice Hotels International (NYSE:CHH) opened at 44.41 on Tuesday. The stock’s 50 day moving average price is $47.05 and its 200-day moving average price is $48.32. Choice Hotels International has a 12-month low of $40.78 and a 12-month high of $54.66. The firm has a market cap of $2.47 billion, a P/E ratio of 19.38 and a beta of 1.17.
Choice Hotels International (NYSE:CHH) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $0.68 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.67 by $0.01. Choice Hotels International had a negative return on equity of 33.53% and a net margin of 14.32%. The business earned $241.80 million during the quarter, compared to the consensus estimate of $244.21 million. During the same quarter in the prior year, the company posted $0.62 earnings per share. Choice Hotels International’s revenue was up 4.1% compared to the same quarter last year. On average, analysts predict that Choice Hotels International will post $2.40 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, October 17th. Stockholders of record on Monday, October 3rd will be paid a dividend of $0.205 per share. The ex-dividend date of this dividend is Thursday, September 29th. This represents a $0.82 annualized dividend and a dividend yield of 1.85%. Choice Hotels International’s payout ratio is 36.28%.
In other news, COO Patrick Pacious sold 4,745 shares of the stock in a transaction on Friday, August 12th. The stock was sold at an average price of $48.73, for a total transaction of $231,223.85. Following the completion of the transaction, the chief operating officer now owns 113,062 shares in the company, valued at approximately $5,509,511.26. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Stephen P. Joyce sold 32,000 shares of the stock in a transaction on Wednesday, September 28th. The stock was sold at an average price of $45.09, for a total value of $1,442,880.00. Following the transaction, the chief executive officer now owns 180,548 shares of the company’s stock, valued at approximately $8,140,909.32. The disclosure for this sale can be found here. Insiders own 22.30% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of CHH. Legal & General Group Plc increased its position in Choice Hotels International by 3.9% in the first quarter. Legal & General Group Plc now owns 2,391 shares of the company’s stock valued at $129,000 after buying an additional 90 shares during the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in Choice Hotels International during the second quarter valued at $119,000. Glenmede Trust Co. NA increased its position in Choice Hotels International by 1.2% in the second quarter. Glenmede Trust Co. NA now owns 3,440 shares of the company’s stock valued at $162,000 after buying an additional 40 shares during the last quarter. BlackRock Inc. increased its position in Choice Hotels International by 323.4% in the first quarter. BlackRock Inc. now owns 4,331 shares of the company’s stock valued at $234,000 after buying an additional 3,308 shares during the last quarter. Finally, Pacer Advisors Inc. purchased a new position in Choice Hotels International during the second quarter valued at $218,000. Institutional investors own 49.90% of the company’s stock.
Choice Hotels International Company Profile
Choice Hotels International, Inc (Choice) is a hotel franchisor. The Company operates in two segments: hotel franchising business and SkyTouch Technology (SkyTouch). It operates approximately 6,420 hotels open and over 720 hotels under construction, representing approximately 507,480 rooms open and over 58,130 rooms under construction, awaiting conversion or approved for development in approximately 50 states, the District of Columbia and over 35 countries and territories outside the United States.
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