Zacks Research Has Negative Forecast for CHH Q3 Earnings

Choice Hotels International, Inc. (NYSE:CHH) – Investment analysts at Zacks Research lowered their Q3 2027 earnings estimates for shares of Choice Hotels International in a research report issued on Monday, May 25th. Zacks Research analyst Team now anticipates that the company will post earnings per share of $2.38 for the quarter, down from their previous estimate of $2.39. The consensus estimate for Choice Hotels International’s current full-year earnings is $7.14 per share. Zacks Research also issued estimates for Choice Hotels International’s Q4 2027 earnings at $1.88 EPS.

CHH has been the subject of several other reports. Barclays cut their price objective on shares of Choice Hotels International from $112.00 to $100.00 and set an “underweight” rating for the company in a research report on Thursday, April 30th. Robert W. Baird set a $128.00 price objective on shares of Choice Hotels International in a research report on Monday, May 11th. Susquehanna cut their price objective on shares of Choice Hotels International from $115.00 to $110.00 and set a “neutral” rating for the company in a research report on Monday, May 4th. Weiss Ratings upgraded shares of Choice Hotels International from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, February 9th. Finally, Truist Financial lowered their price objective on Choice Hotels International from $129.00 to $128.00 and set a “buy” rating on the stock in a research report on Tuesday. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus target price of $111.67.

Choice Hotels International Trading Up 2.2%

Shares of NYSE:CHH opened at $116.19 on Thursday. Choice Hotels International has a 52-week low of $84.04 and a 52-week high of $136.45. The company has a market capitalization of $5.29 billion, a P/E ratio of 15.66, a price-to-earnings-growth ratio of 2.09 and a beta of 0.65. The company has a 50-day simple moving average of $108.74 and a 200 day simple moving average of $102.83. The company has a debt-to-equity ratio of 14.58, a quick ratio of 0.95 and a current ratio of 0.95.

Choice Hotels International (NYSE:CHH) last issued its earnings results on Thursday, April 30th. The company reported $1.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.35 by ($0.28). Choice Hotels International had a net margin of 21.55% and a return on equity of 281.98%. The firm had revenue of $340.58 million during the quarter, compared to analyst estimates of $333.48 million. During the same quarter last year, the business posted $1.34 earnings per share. The company’s revenue for the quarter was up 2.3% on a year-over-year basis. Choice Hotels International has set its FY 2026 guidance at 6.920-7.140 EPS.

Choice Hotels International Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Wednesday, July 1st will be given a dividend of $0.2875 per share. This represents a $1.15 annualized dividend and a yield of 1.0%. The ex-dividend date is Wednesday, July 1st. Choice Hotels International’s payout ratio is currently 15.50%.

Insider Buying and Selling

In other Choice Hotels International news, CFO Scott E. Oaksmith sold 1,603 shares of the business’s stock in a transaction that occurred on Wednesday, March 18th. The shares were sold at an average price of $100.00, for a total transaction of $160,300.00. Following the completion of the transaction, the chief financial officer directly owned 37,172 shares in the company, valued at $3,717,200. The trade was a 4.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 23.78% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Eurizon Capital SGR S.p.A. acquired a new position in Choice Hotels International during the fourth quarter valued at approximately $27,000. Eagle Bay Advisors LLC acquired a new position in Choice Hotels International during the fourth quarter valued at approximately $28,000. Fifth Third Bancorp raised its position in Choice Hotels International by 77.4% during the fourth quarter. Fifth Third Bancorp now owns 392 shares of the company’s stock valued at $37,000 after purchasing an additional 171 shares in the last quarter. UMB Bank n.a. raised its position in Choice Hotels International by 6,416.7% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $37,000 after purchasing an additional 385 shares in the last quarter. Finally, Quarry LP acquired a new position in Choice Hotels International during the third quarter valued at approximately $38,000. 65.57% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Choice Hotels International

Here are the key news stories impacting Choice Hotels International this week:

• Positive Sentiment: Truist Financial kept a Buy rating on Choice Hotels and only trimmed its price target slightly to $128 from $129, implying continued upside from the current share price. Truist price target update via Benzinga
• Positive Sentiment: Zacks Research raised its FY2026 EPS estimate for CHH to $7.08 from $7.06, signaling slightly better expectations for the current year.
• Positive Sentiment: Zacks Research also increased its Q4 2026 EPS estimate to $1.73 from $1.61, which may indicate improving late-2026 earnings momentum.
• Positive Sentiment: Choice Hotels was listed as one of the top contributors to Baron Focused Growth Fund’s Q1 2026 performance, which may reinforce investor confidence in the name. Baron Focused Growth Fund Q1 2026 Contributors And Detractors
• Neutral Sentiment: Zacks Research made only very small changes to several forward EPS estimates, including Q3 2027 ($2.38 vs. $2.39), Q4 2027 ($1.88 vs. $1.89), Q1 2028 ($1.34 vs. $1.36), and FY2028 ($8.10 vs. $8.16), suggesting no major shift in the long-term outlook.
• Negative Sentiment: Zacks Research lowered its Q2 2026 EPS estimate to $1.93 from $1.95 and also trimmed FY2027 to $7.56 from $7.60, which could weigh slightly on sentiment.
• Negative Sentiment: Zacks also cut its Q1 2027 EPS estimate to $1.22 from $1.23, a small downgrade that adds to the cautious tone in the analyst updates.

Choice Hotels International Company Profile

Choice Hotels International, Inc is a hospitality franchisor specializing in the development and support of lodging brands across the economy, midscale and upscale segments. Through a network of franchisees, Choice Hotels supplies proprietary reservation and distribution systems, comprehensive marketing programs, and operational support services. The company’s core activities include brand management, franchise development, and technology-driven revenue optimization tools designed to enhance guest acquisition and retention for its partners.

Founded in 1939 as Quality Courts United, the company rebranded to Choice Hotels International in 1982 to reflect its expanding brand portfolio and global ambitions.