Choice Hotels International (NYSE:CHH) Shares Gap Down on Disappointing Earnings

Choice Hotels International, Inc. (NYSE:CHH)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $117.36, but opened at $109.93. Choice Hotels International shares last traded at $102.2710, with a volume of 133,023 shares.

The company reported $1.07 earnings per share for the quarter, missing analysts’ consensus estimates of $1.31 by ($0.24). The company had revenue of $340.58 million for the quarter, compared to analysts’ expectations of $331.00 million. Choice Hotels International had a net margin of 23.17% and a return on equity of 541.07%. The business’s revenue for the quarter was up 2.3% compared to the same quarter last year. During the same period last year, the company 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 business also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Wednesday, April 1st were paid a dividend of $0.2875 per share. This represents a $1.15 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date of this dividend was Wednesday, April 1st. Choice Hotels International’s dividend payout ratio is 14.52%.

Analyst Ratings Changes

CHH has been the subject of a number of analyst reports. UBS Group dropped their price objective on Choice Hotels International from $120.00 to $118.00 and set a “neutral” rating for the company in a research note on Wednesday, January 7th. JPMorgan Chase & Co. increased their price objective on Choice Hotels International from $109.00 to $117.00 and gave the company a “neutral” rating in a research note on Tuesday, April 21st. The Goldman Sachs Group increased their price objective on Choice Hotels International from $90.00 to $100.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Wells Fargo & Company increased their price objective on Choice Hotels International from $91.00 to $110.00 and gave the company an “underweight” rating in a research note on Friday, February 20th. Finally, Jefferies Financial Group lowered Choice Hotels International from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 12th. 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 stock. According to MarketBeat.com, Choice Hotels International presently has an average rating of “Reduce” and a consensus price target of $112.25.

Insiders Place Their Bets

In other Choice Hotels International news, SVP Simone Wu sold 8,080 shares of the stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $101.56, for a total value of $820,604.80. Following the completion of the transaction, the senior vice president owned 48,803 shares in the company, valued at approximately $4,956,432.68. This represents a 14.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Scott E. Oaksmith sold 1,603 shares of the stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $100.00, for a total value of $160,300.00. Following the completion of the transaction, the chief financial officer owned 37,172 shares of the company’s stock, valued at approximately $3,717,200. This trade represents a 4.13% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 10,283 shares of company stock valued at $1,040,947. 23.78% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Choice Hotels International

A number of institutional investors have recently added to or reduced their stakes in the company. Bamco Inc. NY raised its holdings in Choice Hotels International by 37.8% in the fourth quarter. Bamco Inc. NY now owns 7,386,575 shares of the company’s stock worth $703,645,000 after purchasing an additional 2,026,679 shares in the last quarter. Vanguard Group Inc. raised its holdings in Choice Hotels International by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 2,331,972 shares of the company’s stock worth $222,144,000 after purchasing an additional 27,032 shares in the last quarter. Wellington Management Group LLP raised its holdings in Choice Hotels International by 55.1% in the fourth quarter. Wellington Management Group LLP now owns 574,630 shares of the company’s stock worth $54,739,000 after purchasing an additional 204,146 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in Choice Hotels International by 151.5% in the fourth quarter. Goldman Sachs Group Inc. now owns 512,628 shares of the company’s stock worth $48,833,000 after purchasing an additional 308,771 shares in the last quarter. Finally, Geode Capital Management LLC raised its holdings in Choice Hotels International by 1.5% in the fourth quarter. Geode Capital Management LLC now owns 431,916 shares of the company’s stock worth $41,151,000 after purchasing an additional 6,422 shares in the last quarter. Institutional investors own 65.57% of the company’s stock.

Choice Hotels International Price Performance

The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 10.52. The firm has a fifty day moving average price of $107.07 and a two-hundred day moving average price of $101.47. The stock has a market capitalization of $4.68 billion, a P/E ratio of 12.92, a P/E/G ratio of 5.25 and a beta of 0.74.

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.