JPMorgan Chase & Co. Updates Price Target for Choice Hotels International

Investment analysts at JPMorgan Chase & Co. recently revised their target price for Choice Hotels International (NYSE:CHH). The firm increased the price target from $122.00 to $135.00 in a report issued to investors on Friday. Despite the adjustment in the target price, JPMorgan Chase has assigned an 'underweight' rating to the stock. This revised target price indicates a potential decline of approximately 7.77% from the current stock price.

Analyst Insights

Other analysts have also evaluated Choice Hotels International's performance. For instance, Barclays raised their price objective from $112.00 to $123.00 while maintaining an 'underweight' rating. Morgan Stanley also increased their target from $134.00 to $141.00, giving the stock an 'equal weight' rating. Additionally, Robert W. Baird raised their target price from $138.00 to $145.00 and provided an 'outperform' rating on the stock. On the contrary, Wells Fargo initiated coverage with an 'underweight' rating and set a target price of $133.00. Lastly, Goldman Sachs raised their target from $118.00 to $138.00 but maintained a 'sell' rating. Currently, consensus ratings show that four analysts recommend selling the stock, seven suggest holding it, and one believes it is a buy, with a consensus price target set at $133.64 according to MarketBeat.

Performance Overview

As of Friday, Choice Hotels International traded at $146.37. The company has a fifty-day simple moving average of $142.22, and a 200-day average of $129.52. With a market capitalization of $6.87 billion, it shows a price-to-earnings (PE) ratio of 28.04 and a price-to-earnings-growth (PEG) ratio of 2.30. The stock has fluctuated between a low of $108.91 and a high of $153.81 over the past year. Furthermore, the company carries a debt-to-equity ratio of 177.75, with current and quick ratios both at 0.71.

Earnings Performance

Choice Hotels International announced its latest earnings results on November 4th. The company reported earnings per share (EPS) of $2.23, surpassing analysts' expectations of $1.92 by $0.31. During the quarter, total revenue reached $428 million, slightly below the consensus estimate of $432.62 million. Compared to last year, the company experienced a 0.6% increase in revenue, while the EPS for the same period last year was $1.82. Analysts project that Choice Hotels will post an EPS of 6.84 for the current year.

Insider Trading Activity

In recent insider trading news, Patrick Cimerola, an executive at the company, sold 1,714 shares on October 14th at an average price of $135.00, totaling $231,390. Following this sale, he retains 18,084 shares valued at approximately $2.44 million. Alongside, EVP Dominic Dragisich sold 9,138 shares on October 11th at an average price of $134.88, amounting to $1,232,533.44. After this transaction, he holds 68,509 shares valued around $9.24 million. In the last quarter, a total of 61,412 shares worth $8.58 million were sold by insiders, who now collectively own 24.02% of the company’s shares.

Institutional Investor Activity

Various institutional investors have also adjusted their stakes in Choice Hotels International. For example, SG Americas Securities boosted its holdings by 161.3% in the second quarter and now owns 10,341 shares worth $1.23 million. Similarly, Envestnet Portfolio Solutions increased its position by 26.5%. Other notable changes include Blue Trust and Everpar Advisors raising their stakes by over 300% and 17.0%, respectively. Overall, institutional investors now hold approximately 65.57% of the company's stock.

Company Overview

Choice Hotels International, Inc., along with its subsidiaries, operates as a prominent hotel franchisor both within the United States and internationally. The company functions through Hotel Franchising & Management and Corporate & Other segments. It franchises lodging properties under a diverse range of brand names including Comfort Inn, Quality, Clarion, Econo Lodge, and Radisson, among others.

JPMorgan, Choice, Hotels