Choice Hotels International: A Look at Earnings and Insider Trading
On May 9th, 2023, Choice Hotels International (NYSE:CHH) released its earnings results for the quarter. The hospitality company reported $1.12 earnings per share, surpassing the consensus estimate of $1.08 by $0.04. The company’s revenue for the quarter was $333.80 million, up from a consensus estimate of $320.43 million and representing a 29.5% increase from the same quarter last year.
Choice Hotels International had a net margin of 21.50% and an impressive return on equity of 129.67%. These results come as analysts were speculating about potential challenges in the industry given global economic uncertainties.
Despite these challenges, insider trading seems to be healthy at Choice Hotels International with insiders selling shares worth $570,459 in the last ninety days alone. Director William L. Jews sold 2,214 shares of CHH stock for a total of $264,484 on March 10th while SVP Scott E. Oaksmith sold similar shares worth over $200K on March 6th.
Shares of CHH opened at $113.93 on May 25th with a market capitalization of $5.81 billion and a PE ratio of 19.64 along with other financial indicators that may pique investor interest such as a PEG ratio of just 1.49 despite sitting at a beta value of 1.27 which may infer volatility.
It remains to be seen where Choice Hotels International goes from here but it appears that there is reason to believe that this hospitality giant has weathered some storms successfully – so far in any case – given its latest earnings performance amidst wider industry headwinds while continuing to attract calculated investments through insider trading activity too; two noteworthy takeaways for investors carefully tracking this space over the long term nonetheless!
Choice Hotels International faces reduced earnings estimates and mixed ratings from analysts amidst COVID-19 recovery
Choice Hotels International, Inc., a publicly traded hotel franchisor, has had its earnings per share (EPS) estimates cut for the second quarter of 2023 by Zacks Research. The analysts at Zacks now predict that Choice Hotels International will post $1.65 EPS for Q2 2023, lower than their original forecast of $1.69. They also provided estimates for the hotel company’s full-year earnings in 2023 and beyond, with a consensus estimate of $6.03 per share for FY2023.
Other reports on CHH are less optimistic as Wells Fargo & Company rated the stock “underweight,” StockNews.com issued a “hold” rating, and TheStreet downgraded from a “b” to a “c+” rating. Truist Financial gave CHH a hold rating but boosted the target price to $132 per share. Morgan Stanley also bumped up their target price to $134 per share.
Despite these mixed reviews, Choice Hotels International announced its quarterly dividend to be paid out on July 19th this year. Investors who have recorded this stock by July 5th will receive a dividend of $0.287 per share annually – equivalent to 1.01% in yield – with an ex-dividend date set on July 3rd.
These moves indicate growing concern over the financial performance of one of America’s most well-known hotel franchises, which encompass some of the best-known brand names in hospitality such as Comfort Inn and Quality Inn among others across multiple countries worldwide.
Nonetheless, due diligence can only add value to prospective and current investors’ quality information pool when making crucial investment decisions regarding CHH stock given that it is still early days since these reports were made public.
As we move forward into an era recovering from COVID-19 pandemic restrictions imposed on multiple industries including hotels and resorts; investments remain highly speculative without access To additional financial data – thus the industry remains in a very volatile state of flux.