Mizuho Upgrades Choice Hotels International (NYSE:CHH) to Hold

Choice Hotels International (NYSE:CHH) was upgraded by research analysts at Mizuho to a “hold” rating in a research report issued to clients and investors on Thursday,Zacks.com reports.

Several other research analysts have also recently weighed in on CHH. Truist Financial decreased their price objective on shares of Choice Hotels International from $129.00 to $128.00 and set a “buy” rating on the stock in a research report on Tuesday, May 26th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Choice Hotels International in a report on Tuesday, July 7th. Morgan Stanley increased their target price on Choice Hotels International from $86.00 to $91.00 and gave the company an “underweight” rating in a research note on Tuesday, August 18th. Barclays lifted their price target on Choice Hotels International from $101.00 to $102.00 and gave the stock an “underweight” rating in a research note on Thursday, August 6th. Finally, Susquehanna upped their price objective on Choice Hotels International from $110.00 to $115.00 and gave the stock a “neutral” rating in a report on Tuesday, August 11th. Two investment analysts have rated the stock with a Buy rating, nine have issued a Hold rating and four have given a Sell rating to the stock. According to data from MarketBeat.com, Choice Hotels International has an average rating of “Reduce” and a consensus price target of $112.23.

Choice Hotels International Stock Down 1.1%

CHH opened at $108.69 on Thursday. The firm has a market capitalization of $4.89 billion, a P/E ratio of 15.35, a price-to-earnings-growth ratio of 4.47 and a beta of 0.67. Choice Hotels International has a one year low of $84.04 and a one year high of $123.82. The company has a fifty day moving average price of $109.63 and a 200-day moving average price of $108.56. The company has a debt-to-equity ratio of 14.08, a current ratio of 0.93 and a quick ratio of 0.93.

Choice Hotels International (NYSE:CHH) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $2.02 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.97 by $0.05. The company had revenue of $440.76 million for the quarter, compared to the consensus estimate of $436.48 million. Choice Hotels International had a return on equity of 205.69% and a net margin of 20.28%.During the same quarter last year, the business posted $1.92 earnings per share. The firm’s revenue was up 3.4% compared to the same quarter last year. Choice Hotels International has set its FY 2026 guidance at 6.860-7.100 EPS. Equities research analysts expect that Choice Hotels International will post 6.97 earnings per share for the current fiscal year.

Insider Transactions at Choice Hotels International

In other news, Director William L. Jews sold 5,057 shares of Choice Hotels International stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $106.98, for a total value of $540,997.86. Following the transaction, the director owned 23,987 shares in the company, valued at approximately $2,566,129.26. The trade was a 17.41% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Scott E. Oaksmith sold 2,000 shares of the business’s stock in a transaction dated Friday, June 12th. The shares were sold at an average price of $110.00, for a total value of $220,000.00. Following the completion of the sale, the chief financial officer directly owned 35,172 shares of the company’s stock, valued at approximately $3,868,920. This trade represents a 5.38% decrease in their position. The disclosure for this sale is available in the SEC filing. 23.87% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Bamco Inc. NY raised its holdings in Choice Hotels International by 37.8% during the 4th quarter. Bamco Inc. NY now owns 7,386,575 shares of the company’s stock valued at $703,645,000 after buying an additional 2,026,679 shares during the last quarter. California State Teachers Retirement System raised its stake in shares of Choice Hotels International by 9,525.7% during the second quarter. California State Teachers Retirement System now owns 3,184,377 shares of the company’s stock valued at $351,141,000 after acquiring an additional 3,151,295 shares during the last quarter. Vanguard Group Inc. raised its stake in shares of Choice Hotels International by 1.2% during the fourth quarter. Vanguard Group Inc. now owns 2,331,972 shares of the company’s stock valued at $222,144,000 after acquiring an additional 27,032 shares during the last quarter. Wellington Management Group LLP boosted its holdings in shares of Choice Hotels International by 1.7% during the second quarter. Wellington Management Group LLP now owns 669,693 shares of the company’s stock worth $73,847,000 after purchasing an additional 11,366 shares during the period. Finally, Goldman Sachs Group Inc. boosted its holdings in shares of Choice Hotels International by 151.5% during 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 during the period. 65.57% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Choice Hotels International

Here are the key news stories impacting Choice Hotels International this week:

• Neutral Sentiment: Choice Hotels recently exceeded expectations in its latest reported quarter, earning $2.02 per share versus the $1.97 consensus estimate, while revenue rose 3.4% year over year to $440.76 million. The company’s FY2026 guidance remains $6.86–$7.10 per share, providing some support despite the newer estimate cuts.
• Negative Sentiment: Zacks lowered its FY2026 EPS forecast to $6.93 from $7.08, below the current consensus estimate of $6.99. It also reduced estimates for third-quarter 2026 EPS to $2.24 from $2.35 and fourth-quarter EPS to $1.60 from $1.73.
• Negative Sentiment: The downward revisions extend into 2027: Q1 EPS was cut to $1.12 from $1.22, Q2 to $1.93 from $2.08, Q3 to $2.27 from $2.38, and Q4 to $1.75 from $1.88. Zacks reduced its full-year 2027 forecast to $7.06 from $7.56.
• Negative Sentiment: Longer-term expectations also weakened, with Q1 2028 EPS reduced to $1.24 from $1.34, Q2 to $2.12 from $2.27, and FY2028 EPS to $7.60 from $8.10. The broad-based nature of the cuts is the main bearish catalyst for CHH today.

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.