Zacks Research Has Optimistic Outlook of CHH FY2025 Earnings

Choice Hotels International, Inc. (NYSE:CHH) – Equities research analysts at Zacks Research boosted their FY2025 earnings per share estimates for shares of Choice Hotels International in a research note issued on Thursday, May 29th. Zacks Research analyst H. Ray now anticipates that the company will earn $7.03 per share for the year, up from their previous forecast of $7.00. The consensus estimate for Choice Hotels International’s current full-year earnings is $7.07 per share. Zacks Research also issued estimates for Choice Hotels International’s Q4 2025 earnings at $1.70 EPS, Q1 2026 earnings at $1.49 EPS, Q2 2026 earnings at $2.05 EPS, Q3 2026 earnings at $2.16 EPS, Q1 2027 earnings at $1.58 EPS and FY2027 earnings at $8.22 EPS.

Other analysts also recently issued reports about the company. Morgan Stanley cut their target price on Choice Hotels International from $124.00 to $115.00 and set an “underweight” rating on the stock in a research note on Tuesday, April 22nd. Truist Financial cut their target price on Choice Hotels International from $144.00 to $128.00 and set a “hold” rating on the stock in a research note on Friday. Barclays cut their target price on Choice Hotels International from $132.00 to $111.00 and set an “underweight” rating on the stock in a research note on Tuesday, April 22nd. The Goldman Sachs Group upgraded Choice Hotels International from a “sell” rating to a “buy” rating and cut their target price for the company from $141.00 to $138.00 in a research note on Monday, April 14th. Finally, Susquehanna set a $140.00 target price on Choice Hotels International and gave the company a “neutral” rating in a research note on Friday, May 16th. Four investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and three have issued a buy rating to the company’s stock. According to MarketBeat, Choice Hotels International has a consensus rating of “Hold” and a consensus price target of $132.15.

Choice Hotels International Stock Up 0.1%

Choice Hotels International stock opened at $127.02 on Monday. The company has a market capitalization of $5.89 billion, a P/E ratio of 20.39, a PEG ratio of 1.90 and a beta of 1.00. The stock’s 50 day moving average is $126.78 and its 200 day moving average is $138.07. Choice Hotels International has a twelve month low of $111.62 and a twelve month high of $157.86.

Choice Hotels International (NYSE:CHH) last posted its quarterly earnings results on Thursday, May 8th. The company reported $1.34 earnings per share for the quarter, missing the consensus estimate of $1.38 by ($0.04). The company had revenue of $332.86 million during the quarter, compared to analysts’ expectations of $348.52 million. Choice Hotels International had a negative return on equity of 472.31% and a net margin of 18.91%. The business’s quarterly revenue was up .3% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.28 EPS.

Hedge Funds Weigh In On Choice Hotels International

A number of institutional investors have recently bought and sold shares of the stock. Rhumbline Advisers raised its holdings in Choice Hotels International by 1.0% in the 1st quarter. Rhumbline Advisers now owns 71,772 shares of the company’s stock worth $9,530,000 after purchasing an additional 726 shares during the period. Jane Street Group LLC raised its holdings in Choice Hotels International by 89.8% in the 1st quarter. Jane Street Group LLC now owns 50,138 shares of the company’s stock worth $6,657,000 after purchasing an additional 23,726 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Choice Hotels International by 8.9% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 108,512 shares of the company’s stock worth $14,408,000 after purchasing an additional 8,887 shares during the period. Caxton Associates LLP bought a new position in Choice Hotels International in the 1st quarter worth $1,634,000. Finally, Goldman Sachs Group Inc. raised its holdings in Choice Hotels International by 13.3% in the 1st quarter. Goldman Sachs Group Inc. now owns 110,031 shares of the company’s stock worth $14,610,000 after purchasing an additional 12,904 shares during the period. 65.57% of the stock is owned by institutional investors.

Insider Activity

In other news, Director Ervin R. Shames sold 2,000 shares of the stock in a transaction on Monday, May 19th. The stock was sold at an average price of $129.56, for a total transaction of $259,120.00. Following the transaction, the director now directly owns 52,212 shares of the company’s stock, valued at $6,764,586.72. This represents a 3.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Scott E. Oaksmith sold 1,780 shares of the stock in a transaction on Tuesday, March 4th. The shares were sold at an average price of $144.40, for a total value of $257,032.00. Following the transaction, the chief financial officer now directly owns 32,014 shares in the company, valued at $4,622,821.60. The trade was a 5.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 23.78% of the company’s stock.

Choice Hotels International Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 16th. Stockholders of record on Tuesday, July 1st will be issued a dividend of $0.2875 per share. The ex-dividend date of this dividend is Tuesday, July 1st. This represents a $1.15 annualized dividend and a dividend yield of 0.91%. Choice Hotels International’s payout ratio is 17.56%.

About Choice Hotels International

Choice Hotels International, Inc, together with its subsidiaries, operates as a hotel franchisor in the United States and internationally. It operates through Hotel Franchising & Management and Corporate & Other segments. The company franchises lodging properties under the brand names of Comfort Inn, Comfort Suites, Quality, Clarion, Clarion Pointe, Sleep Inn, Ascend Hotel Collection, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Studios, WoodSpring Suites, Everhome Suites, Cambria Hotels, Radisson Blu, Radisson RED, Radisson, Park Plaza, Country Inn & Suites by Radisson, Radisson Inn & Suites, Park Inn by Radisson, Radisson Individuals, and Radisson Collection.