Lord Abbett Reduces Stake in Choice Hotels International, Inc.

Lord Abbett & CO. LLC has reduced its stake in Choice Hotels International, Inc. (NYSE:CHH) by 7.3% during the third quarter, as reported in their latest Form 13F with the Securities and Exchange Commission. After selling 16,239 shares during this period, Lord Abbett now holds 206,226 shares in the company, which equates to approximately 0.44% of Choice Hotels International, with a value of around $26,872,000.

Additionally, other institutional investors have also engaged in buying and selling activities concerning Choice Hotels' shares. For example, &PARTNERS acquired a new stake in the second quarter valued at about $366,000. TD Private Client Wealth LLC raised its holdings in the third quarter by 30.1%, owning 14,889 shares worth $1,940,000 after purchasing 3,446 more shares. Erste Asset Management GmbH and International Assets Investment Management LLC also established new positions in the third quarter, valued at roughly $19,545,000 and $42,280,000, respectively. In a notable move, BNP Paribas Financial Markets increased its stake in Choice Hotels by a substantial 256.3%, now holding 27,719 shares worth $3,612,000. Overall, institutional investors and hedge funds possess around 65.57% of the company's stock.

Current Performance of Choice Hotels International Stock

As of Monday, CHH opened trading at $146.45. Within the last year, Choice Hotels International's stock has seen a low of $108.91 and a high of $153.81. The company's 50-day moving average stands at $142.50, while the 200-day moving average is $130.00. Choice Hotels has a market capitalization of $6.87 billion and a price-to-earnings ratio of 28.06, with a P/E/G ratio of 2.30 and a beta of 1.23. The current ratio and quick ratio are both at 0.71, and the debt-to-equity ratio is quite high at 177.75.

Recent Earnings Announcements

Choice Hotels International recently reported its quarterly earnings on November 4th, revealing an earnings per share (EPS) of $2.23, which surpassed analysts’ expectations of $1.92 by $0.31. The company reported revenues of $428.00 million for the quarter, slightly below the expected $432.62 million. Despite this, the company experienced a year-over-year revenue increase of 0.6%. At the same time last year, Choice Hotels had an EPS of $1.82. Analysts predict that Choice Hotels will achieve an EPS of 6.84 for the current year.

Dividend Announcements

In related news, Choice Hotels International has announced plans for a quarterly dividend, which will be distributed on January 16th. Shareholders on record by January 2nd will receive a dividend of $0.2875 per share, with an ex-dividend date also set for January 2nd. This amounts to an annual dividend of $1.15, reflecting a yield of 0.79%. The dividend payout ratio is currently at 22.03%.

Analyst Ratings and Insights

Several analysts have recently reviewed Choice Hotels International. StockNews.com has upgraded the company from a “sell” to a “hold” rating. In contrast, Morgan Stanley raised its price target from $134.00 to $141.00, maintaining an “equal weight” rating. Barclays increased its price target from $123.00 to $129.00, while The Goldman Sachs Group raised its price target from $118.00 to $138.00 but issued a “sell” rating. Moreover, Wells Fargo initiated coverage with an “underweight” rating and a $133.00 target price. As it stands, four analysts rate the stock as a sell, seven as a hold, and one as a buy. The average rating is currently “Hold,” with an average target price of $134.18.

Insider Trading Activities

In the latest insider transactions, CEO Patrick Pacious sold 7,192 shares on November 8th at an average price of $144.95, bringing in approximately $1,042,480. After this sale, he retains 404,666 shares in the company. Another insider, Patrick Cimerola, sold 1,714 shares on October 14th at an average price of $135.00, totaling $231,390. Following this sale, Cimerola possesses 18,084 shares. Overall, in the previous quarter, insiders sold 61,412 shares valued at $8,582,271, reflecting that insiders currently hold 24.02% of the company’s stock.

Company Overview

Choice Hotels International, Inc., along with its subsidiaries, operates as a hotel franchisor both in the United States and globally. Its business segments include Hotel Franchising & Management and Corporate & Other. The company franchises a range of lodging properties under various well-known brand names including Comfort Inn, Quality, Econo Lodge, and many others.

Stock, Dividends, Earnings