Choice Hotels International (CHH) Upgraded at Zacks Investment Research
Choice Hotels International (NYSE:CHH) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm presently has a $89.00 price objective on the stock. Zacks Investment Research‘s price target would indicate a potential upside of 17.17% from the company’s current price.
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.”
Other equities research analysts also recently issued research reports about the company. TheStreet raised Choice Hotels International from a “c+” rating to a “b-” rating in a research report on Friday, September 28th. ValuEngine raised Choice Hotels International from a “hold” rating to a “buy” rating in a research report on Saturday, September 22nd. Longbow Research initiated coverage on Choice Hotels International in a research report on Friday, September 7th. They set a “buy” rating and a $95.00 price objective on the stock. Wells Fargo & Co reaffirmed a “hold” rating on shares of Choice Hotels International in a research report on Thursday, August 9th. Finally, Jefferies Financial Group set a $83.00 price objective on Choice Hotels International and gave the company a “hold” rating in a research report on Friday, November 9th. Two research analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have given a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $82.33.
Choice Hotels International (NYSE:CHH) last issued its quarterly earnings data on Thursday, November 8th. The company reported $1.24 earnings per share for the quarter, beating analysts’ consensus estimates of $1.16 by $0.08. Choice Hotels International had a negative return on equity of 98.61% and a net margin of 17.26%. The company had revenue of $291.50 million for the quarter, compared to the consensus estimate of $321.69 million. During the same quarter last year, the company earned $0.95 earnings per share. The firm’s revenue for the quarter was down 1.8% compared to the same quarter last year. On average, research analysts forecast that Choice Hotels International will post 3.85 earnings per share for the current fiscal year.
In other Choice Hotels International news, CEO Patrick Pacious sold 35,350 shares of the stock in a transaction dated Friday, September 21st. The stock was sold at an average price of $82.33, for a total value of $2,910,365.50. Following the completion of the sale, the chief executive officer now directly owns 139,498 shares in the company, valued at $11,484,870.34. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, insider Patrick Cimerola sold 5,180 shares of the 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 owns 26,009 shares of the company’s stock, valued at $2,160,047.45. The disclosure for this sale can be found here. Over the last quarter, insiders sold 55,323 shares of company stock valued at $4,553,317. 24.38% of the stock is currently owned by company insiders.
Institutional investors have recently added to or reduced their stakes in the business. GAM Holding AG purchased a new stake in Choice Hotels International in the second quarter valued at about $718,000. Fort L.P. purchased a new stake in Choice Hotels International in the second quarter valued at about $116,000. Tealwood Asset Management Inc. purchased a new stake in Choice Hotels International in the third quarter valued at about $3,566,000. Renaissance Technologies LLC raised its stake in Choice Hotels International by 5.9% in the second quarter. Renaissance Technologies LLC now owns 1,553,200 shares of the company’s stock valued at $117,422,000 after buying an additional 86,700 shares during the last quarter. Finally, Schroder Investment Management Group raised its stake in Choice Hotels International by 6.9% in the second quarter. Schroder Investment Management Group now owns 13,774 shares of the company’s stock valued at $1,034,000 after buying an additional 885 shares during the last quarter. Institutional investors own 56.29% 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 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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