Choice Hotels International (NYSE:CHH) Rating Lowered to Strong Sell at Zacks Investment Research

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Zacks Investment Research downgraded shares of Choice Hotels International (NYSE:CHH) from a hold rating to a strong sell rating in a research report released on Tuesday, Zacks.com reports. Zacks Investment Research currently has $74.00 price target on the stock.

According to Zacks, “Although shares of Choice Hotels have outperformed the industry in the past year, the coronavirus related woes still remains a major concern for the company. Owing to the same, the company has also suspended dividend payouts. Notably, the company’s high debt level remains a concern to tide over the ongoing pandemic. Moreover, stiff competition and high cost of operations are adding to woes. However, continual expansion strategies through acquisitions as well as enhancement of the mid-scale brand and the acquisition of the WoodSpring brand and transformation and advancement of the Comfort and Cambria brands are likely to aid the company going forward. Notably, earnings estimates for 2020 have increased over the past 30 days.”

Several other equities research analysts have also issued reports on CHH. Deutsche Bank dropped their target price on shares of Choice Hotels International from $95.00 to $70.00 and set a hold rating for the company in a research report on Tuesday, May 12th. They noted that the move was a valuation call. Morgan Stanley lifted their target price on shares of Choice Hotels International from $67.00 to $71.00 and gave the company an equal weight rating in a research report on Wednesday, May 13th. Barclays boosted their price objective on shares of Choice Hotels International from $73.00 to $82.00 and gave the stock an underweight rating in a report on Monday, June 22nd. Wolfe Research upgraded shares of Choice Hotels International from an underperform rating to a peer perform rating in a report on Thursday, April 9th. Finally, Jefferies Financial Group lowered their price objective on shares of Choice Hotels International from $62.00 to $60.00 and set a hold rating for the company in a report on Wednesday, April 22nd. Three investment analysts have rated the stock with a sell rating, eight have assigned a hold rating and three have issued a buy rating to the company. The stock presently has an average rating of Hold and a consensus price target of $78.86.

CHH stock opened at $84.04 on Tuesday. The firm has a 50 day moving average of $82.57 and a 200-day moving average of $82.85. Choice Hotels International has a 12 month low of $46.25 and a 12 month high of $109.26. The firm has a market capitalization of $4.72 billion, a P/E ratio of 20.10 and a beta of 1.36.

Choice Hotels International (NYSE:CHH) last released its quarterly earnings data on Monday, May 11th. The company reported $0.76 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.03. Choice Hotels International had a net margin of 22.27% and a negative return on equity of 385.30%. The company had revenue of $218.20 million during the quarter, compared to analyst estimates of $202.87 million. During the same period last year, the business earned $0.84 earnings per share. Choice Hotels International’s revenue was up .0% compared to the same quarter last year. Analysts anticipate that Choice Hotels International will post 2.35 EPS for the current fiscal year.

Several hedge funds and other institutional investors have recently modified their holdings of CHH. Raymond James Financial Services Advisors Inc. purchased a new position in shares of Choice Hotels International in the fourth quarter worth $204,000. Raymond James & Associates increased its stake in shares of Choice Hotels International by 32.5% in the fourth quarter. Raymond James & Associates now owns 6,685 shares of the company’s stock worth $691,000 after buying an additional 1,640 shares during the period. UBS Group AG increased its stake in shares of Choice Hotels International by 1.5% in the fourth quarter. UBS Group AG now owns 32,335 shares of the company’s stock worth $3,344,000 after buying an additional 486 shares during the period. Bank of New York Mellon Corp increased its stake in shares of Choice Hotels International by 77.2% in the fourth quarter. Bank of New York Mellon Corp now owns 403,572 shares of the company’s stock worth $41,742,000 after buying an additional 175,860 shares during the period. Finally, First Republic Investment Management Inc. purchased a new position in shares of Choice Hotels International in the fourth quarter worth $201,000. 59.61% of the stock is currently owned by institutional investors.

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 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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