Zacks Investment Research upgraded shares of Choice Hotels International (NYSE:CHH) from a hold rating to a buy rating in a research note published on Tuesday. Zacks Investment Research currently has $89.00 price target on the stock.
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 third quarter of 2018. The company also raised its 2018 earnings guidance. By enhancement of mid-scale brand and the acquisition of WoodSpring, as well as the transformation of the Comfort and Cambria brand, Choice Hotels is poised for growth. Earnings estimates for 2018 have been revised upward over the past 30 days, reflecting analysts’ optimism surrounding the company’s future earnings potential. However, high cost of operations and competition remain concerns. Total operating expenses in the first nine months of 2018 increased 7% year over year. Also, the hospitality industry is cyclical and a worsening of global economic conditions might in turn dent Choice Hotels’ revenues and profits.”
Several other brokerages have also recently weighed in on CHH. ValuEngine upgraded Choice Hotels International from a hold rating to a buy rating in a report on Saturday, September 22nd. TheStreet upgraded Choice Hotels International from a c+ rating to a b- rating in a report on Friday, September 28th. JPMorgan Chase & Co. decreased their price objective on Choice Hotels International to $71.00 and set an underweight rating for the company in a report on Friday, November 9th. Jefferies Financial Group set a $83.00 price objective on Choice Hotels International and gave the company a hold rating in a report on Friday, November 9th. Finally, Wells Fargo & Co decreased their price objective on Choice Hotels International from $86.00 to $82.00 and set a market perform rating for the company in a report on Thursday, November 15th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the stock. Choice Hotels International currently has a consensus rating of Hold and a consensus price target of $82.33.
Shares of NYSE CHH opened at $74.87 on Tuesday. The stock has a market capitalization of $4.26 billion, a PE ratio of 26.00, a P/E/G ratio of 2.32 and a beta of 1.08. Choice Hotels International has a fifty-two week low of $69.06 and a fifty-two week high of $85.35.
Choice Hotels International (NYSE:CHH) last announced its quarterly earnings data on Thursday, November 8th. The company reported $1.24 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.16 by $0.08. The company had revenue of $291.50 million during the quarter, compared to analysts’ expectations of $321.69 million. Choice Hotels International had a negative return on equity of 98.61% and a net margin of 17.26%. Choice Hotels International’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.95 EPS. On average, sell-side analysts expect that Choice Hotels International will post 3.85 earnings per share for the current fiscal year.
In related news, insider Patrick Cimerola sold 5,180 shares of the firm’s stock in a transaction dated Thursday, September 20th. The shares were sold at an average price of $83.05, for a total value of $430,199.00. Following the completion of the sale, the insider now directly owns 26,009 shares in the company, valued at approximately $2,160,047.45. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Patrick Pacious sold 9,613 shares of the firm’s stock in a transaction dated Tuesday, September 18th. The shares were sold at an average price of $82.02, for a total transaction of $788,458.26. Following the completion of the sale, the chief executive officer now owns 132,599 shares of the company’s stock, valued at $10,875,769.98. The disclosure for this sale can be found here. Insiders sold a total of 55,323 shares of company stock valued at $4,553,317 over the last quarter. 22.01% of the stock is currently owned by company insiders.
Large investors have recently modified their holdings of the stock. GAM Holding AG acquired a new stake in Choice Hotels International in the 2nd quarter valued at about $718,000. Fort L.P. acquired a new stake in Choice Hotels International in the 2nd quarter valued at about $116,000. Tealwood Asset Management Inc. acquired a new stake in Choice Hotels International in the 3rd quarter valued at about $3,566,000. Renaissance Technologies LLC lifted its stake in Choice Hotels International by 5.9% in the 2nd quarter. Renaissance Technologies LLC now owns 1,553,200 shares of the company’s stock valued at $117,422,000 after purchasing an additional 86,700 shares during the last quarter. Finally, Schroder Investment Management Group lifted its stake in Choice Hotels International by 6.9% in the 2nd quarter. Schroder Investment Management Group now owns 13,774 shares of the company’s stock valued at $1,034,000 after purchasing an additional 885 shares during the last quarter. Institutional investors and hedge funds own 56.29% of the company’s stock.
Choice Hotels International Company Profile
Choice Hotels International, Inc, together with its subsidiaries, operates as a hotel franchisor worldwide. It operates through Hotel Franchising and SkyTouch Technology segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria hotels & suites, and Ascend Hotel Collection.
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