Choice Hotels International Inc. (CHH) Downgraded by Zacks Investment Research 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. “
Other equities research analysts also recently issued reports about the stock. Bank of America Corp. reaffirmed a buy rating on shares of Choice Hotels International in a report on Monday, July 18th. Morgan Stanley raised shares of Choice Hotels International from an underweight rating to an equal weight rating and set a $47.00 price objective on the stock in a report on Monday, September 26th. Deutsche Bank AG reaffirmed a hold rating on shares of Choice Hotels International in a report on Sunday, June 26th. Finally, Wolfe Research started coverage on shares of Choice Hotels International in a report on Wednesday, July 6th. They set a market perform rating on the stock. Three investment analysts have rated the stock with a sell rating, five have given a hold rating and two have assigned a buy rating to the company. The company currently has an average rating of Hold and an average target price of $48.78.
Shares of Choice Hotels International (NYSE:CHH) opened at 44.58 on Tuesday. The stock has a 50 day moving average of $47.46 and a 200-day moving average of $48.44. The firm has a market capitalization of $2.48 billion, a P/E ratio of 19.46 and a beta of 1.17. Choice Hotels International has a 1-year low of $40.78 and a 1-year high of $54.66.
Choice Hotels International (NYSE:CHH) last issued its quarterly earnings results on Tuesday, August 2nd. The company reported $0.68 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.67 by $0.01. The company had revenue of $241.80 million for the quarter, compared to the consensus estimate of $244.21 million. Choice Hotels International had a net margin of 14.32% and a negative return on equity of 33.53%. The firm’s quarterly revenue was up 4.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.62 EPS. On average, equities analysts expect that Choice Hotels International will post $2.40 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 17th. Shareholders of record on Monday, October 3rd will be given a dividend of $0.205 per share. This represents a $0.82 dividend on an annualized basis and a yield of 1.84%. The ex-dividend date is Thursday, September 29th. Choice Hotels International’s payout ratio is currently 36.28%.
In other Choice Hotels International news, COO Patrick Pacious sold 4,745 shares of the stock in a transaction that occurred on Friday, August 12th. The shares were sold at an average price of $48.73, for a total transaction of $231,223.85. Following the transaction, the chief operating officer now directly owns 113,062 shares in the company, valued at $5,509,511.26. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Patrick Cimerola sold 13,515 shares of the stock in a transaction that occurred on Friday, September 2nd. The shares were sold at an average price of $48.21, for a total transaction of $651,558.15. Following the transaction, the insider now owns 50,882 shares in the company, valued at $2,453,021.22. The disclosure for this sale can be found here. Company insiders own 22.30% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in Choice Hotels International by 6.0% in the second quarter. Vanguard Group Inc. now owns 2,339,733 shares of the company’s stock worth $111,418,000 after buying an additional 133,298 shares during the period. Wellington Management Group LLP raised its stake in Choice Hotels International by 11.4% in the first quarter. Wellington Management Group LLP now owns 1,767,296 shares of the company’s stock worth $95,522,000 after buying an additional 180,342 shares during the period. Dimensional Fund Advisors LP raised its stake in Choice Hotels International by 12.4% in the second quarter. Dimensional Fund Advisors LP now owns 858,378 shares of the company’s stock worth $40,874,000 after buying an additional 95,036 shares during the period. Atlanta Capital Management Co. L L C raised its stake in Choice Hotels International by 6.5% in the second quarter. Atlanta Capital Management Co. L L C now owns 762,789 shares of the company’s stock worth $36,324,000 after buying an additional 46,847 shares during the period. Finally, BTIM Corp. raised its stake in Choice Hotels International by 61.8% in the second quarter. BTIM Corp. now owns 681,326 shares of the company’s stock worth $32,445,000 after buying an additional 260,282 shares during the period. Institutional investors and hedge funds own 49.90% of the company’s stock.
About Choice Hotels International
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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