Choice Hotels International (CHH) Downgraded by Zacks Investment Research to “Hold”

Choice Hotels International (NYSE:CHH) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Thursday, Zacks.com reports.

According to Zacks, “Choice Hotels’ shares have outperformed the industry over the past year. The company’s enthralling growth trajectory is likely to continue after it reported better-than-expected earnings in the first quarter of 2019. Earnings not only surpassed the Zacks Consensus Estimate but also grew 25% year over year, driven by its core franchising operations. Revenues, too, increased from the year-ago quarter on higher revenue per available room (RevPAR) growth. Following the results, the company provided bullish earnings guidance for 2019. By the continuous enhancement of mid-scale brand and the acquisition of WoodSpring brand, as well as the transformation and advancement of the Comfort and Cambria brand, Choice Hotels is poised for growth. However, high cost of operations and intense competition remain concerns.”

Other equities research analysts have also recently issued reports about the company. Deutsche Bank reaffirmed a “hold” rating and set a $76.00 price objective on shares of Choice Hotels International in a research note on Sunday, February 17th. SunTrust Banks lifted their price objective on Choice Hotels International from $80.00 to $87.00 and gave the stock a “hold” rating in a research note on Tuesday, February 19th. One equities research analyst has rated the stock with a sell rating, seven have issued a hold rating and one has issued a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $82.88.

Shares of Choice Hotels International stock traded up $0.59 during trading on Thursday, reaching $84.76. 4,864 shares of the company were exchanged, compared to its average volume of 313,861. Choice Hotels International has a twelve month low of $66.71 and a twelve month high of $87.25. The stock has a market cap of $4.55 billion, a PE ratio of 21.80, a price-to-earnings-growth ratio of 2.42 and a beta of 1.10.

Choice Hotels International (NYSE:CHH) last announced its quarterly earnings data on Thursday, May 9th. The company reported $0.84 EPS for the quarter, topping analysts’ consensus estimates of $0.75 by $0.09. Choice Hotels International had a negative return on equity of 124.30% and a net margin of 21.08%. The business had revenue of $218.30 million during the quarter, compared to analysts’ expectations of $221.84 million. During the same period in the previous year, the firm earned $0.67 earnings per share. The firm’s quarterly revenue was up 4.3% compared to the same quarter last year. As a group, research analysts predict that Choice Hotels International will post 4.15 earnings per share for the current fiscal year.

In other news, insider David A. Pepper sold 7,655 shares of the business’s stock in a transaction dated Tuesday, February 26th. The stock was sold at an average price of $79.76, for a total value of $610,562.80. Following the sale, the insider now directly owns 90,483 shares in the company, valued at $7,216,924.08. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider John Bonds sold 5,102 shares of the business’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $82.01, for a total value of $418,415.02. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 19,167 shares of company stock worth $1,527,163. Corporate insiders own 24.90% of the company’s stock.

Several institutional investors have recently modified their holdings of CHH. Rockefeller Capital Management L.P. bought a new stake in Choice Hotels International during the first quarter worth about $26,000. Enlightenment Research LLC bought a new stake in Choice Hotels International during the fourth quarter worth about $29,000. Captrust Financial Advisors raised its holdings in Choice Hotels International by 85.7% during the fourth quarter. Captrust Financial Advisors now owns 531 shares of the company’s stock worth $38,000 after acquiring an additional 245 shares in the last quarter. Quadrant Capital Group LLC bought a new stake in Choice Hotels International during the first quarter worth about $76,000. Finally, Ladenburg Thalmann Financial Services Inc. raised its holdings in Choice Hotels International by 12.4% during the first quarter. Ladenburg Thalmann Financial Services Inc. now owns 1,349 shares of the company’s stock worth $106,000 after acquiring an additional 149 shares in the last quarter. Institutional investors own 59.24% of the company’s stock.

About Choice Hotels International

Choice Hotels International, Inc, together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, WoodSpring Suites, Cambria Hotels, V8 Hotel Köln @Motorworld, Quality Hotel Ostrava, Hotel Aquarius Venice, and Ascend Hotel Collection.

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Analyst Recommendations for Choice Hotels International (NYSE:CHH)

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