Patrick Cimerola, Chief Human Resources Officer at Choice Hotels International Inc . (NYSE:CHH), recently reported significant transactions involving the company's stock. According to an SEC filing, Cimerola sold shares worth approximately $1.99 million over several transactions on November 22 and 25, 2024. The sale prices ranged from $150.00 to $152.47 per share.
In addition to the sales, Cimerola exercised options to acquire shares at prices ranging from $81.15 to $104.87, totaling about $730,572. These transactions were executed under a 10b5-1 trading plan, a common strategy for executives to systematically sell shares. Following these transactions, Cimerola's direct ownership of Choice Hotels' common stock stands at 12,616 shares.
In other recent news, Choice Hotels International, Inc. has been the subject of several analyst adjustments following its strong third-quarter performance. The company reported significant growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) and earnings per share (EPS), leading it to raise its full-year guidance for adjusted net income and EPS. The company's global hotel pipeline expanded to over 110,000 rooms, marking an 11% year-over-year increase.
Baird maintained an Outperform rating on Choice Hotels and increased its price target to $145 from $138, reflecting confidence in the company's continued improvement. Jefferies, however, revised its stance from Buy to Hold, citing a balanced valuation of Choice Hotels' stock in the wake of its recent deal with Wyndham. Goldman Sachs maintained a Sell rating, but increased its price target to $118 from $105, despite expressing concern over the company's decelerating global pipeline.
These recent developments point to a robust performance and potential for future growth for Choice Hotels. The company's extended-stay segment has seen growth over 10% for five consecutive quarters, with 350 hotels in the pipeline. The company's domestic revenue per available room (RevPAR) exceeded expectations due to leisure and corporate travel recovery. Its international portfolio expanded by 3.8% year-over-year, with growth in Europe, the Middle East, and Africa (EMEA). Choice Hotels' Choice Privileges rewards program also grew to 68 million members.
InvestingPro Insights
As Patrick Cimerola's recent stock transactions draw attention, it's worth examining Choice Hotels International Inc.'s (NYSE:CHH) current financial position and market performance. According to InvestingPro data, the company boasts a market capitalization of $7.06 billion, reflecting its substantial presence in the hospitality industry.
Choice Hotels has demonstrated strong financial performance, with a gross profit margin of 89.74% for the last twelve months as of Q3 2024. This impressive figure aligns with one of the InvestingPro Tips, which highlights the company's "impressive gross profit margins." Such robust profitability metrics suggest efficient cost management and pricing power within the competitive hotel sector.
Another noteworthy InvestingPro Tip indicates that Choice Hotels "has maintained dividend payments for 21 consecutive years." This long-standing commitment to shareholder returns may be particularly relevant to investors considering the stock's recent price movements. The company's current dividend yield stands at 0.75%, based on the most recent data.
Interestingly, Choice Hotels has seen a significant price appreciation recently, with a 21.91% total return over the past three months and a 32.94% return over the last six months. This strong performance is reflected in another InvestingPro Tip, which notes the "strong return over the last three months." The stock is currently trading near its 52-week high, with the price at 98.69% of its peak.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Choice Hotels, providing a deeper understanding of the company's financial health and market position. These insights could prove valuable in contextualizing the recent insider transactions and evaluating the stock's potential.
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