Dominic Dragisich, Executive Vice President and Chief Global Brands Officer at Choice Hotels (NYSE:CHH) International Inc. (NYSE:CHH), recently sold shares worth approximately $1.23 million. This transaction involved the sale of 9,138 shares of common stock at an average price of $134.88 per share. The shares were sold on October 11, with prices ranging from $134.52 to $135.14.
Prior to the sale, Dragisich exercised options to acquire 9,138 shares at a price of $81.15 per share, a transaction valued at about $741,548. Following these transactions, Dragisich now holds 68,509 shares directly. These transactions were conducted under a prearranged trading plan.
In other recent news, Choice Hotels International reported strong financial results, with a 14% revenue increase to $258.9 million and a 6% growth in adjusted EBITDA to a record $161.7 million. The company's robust growth strategy has led to a 9% expected adjusted EBITDA growth for 2024. Additionally, Choice Hotels has seen an 8% year-on-year growth in domestic franchise agreements, and its global pipeline has reached a record 115,000 rooms, marking a 22% increase from the previous year.
These recent developments are further bolstered by the company's success in conversions and new construction projects, particularly in the extended-stay and mid-scale brands. Internationally, Choice Hotels has doubled its EBITDA over the past two years and anticipates significant opportunities for market share expansion.
Despite these positive developments, Goldman Sachs initiated coverage on Choice Hotels with a Sell rating, accompanied by a price target of $105.00. The firm expressed concerns over the hotel chain's financial projections for the coming years, citing potential difficulties in achieving its EBITDA and earnings per share (EPS) estimates. Goldman Sachs also stands 5% and 7% below the consensus EPS estimates for 2025 and 2026, respectively.
InvestingPro Insights
Choice Hotels International Inc . (NYSE:CHH) continues to demonstrate strong financial performance, aligning with the recent insider transaction. According to InvestingPro data, the company boasts a market capitalization of $6.32 billion and an impressive gross profit margin of 90.13% for the last twelve months as of Q2 2024. This aligns with one of the InvestingPro Tips, which highlights the company's "impressive gross profit margins."
The stock's recent performance has been noteworthy, with a 7.6% price total return over the past month and a 19.36% return year-to-date. This upward trend is reflected in another InvestingPro Tip, which indicates that CHH is "trading near its 52-week high," with the current price at 99.39% of its 52-week high.
Investors should also note that Choice Hotels has maintained dividend payments for 21 consecutive years, as pointed out by an InvestingPro Tip. This consistency in dividend payments, coupled with a current dividend yield of 0.86%, may be attractive to income-focused investors.
For those interested in a more comprehensive analysis, InvestingPro offers 7 additional tips for Choice Hotels International Inc., providing deeper insights into the company's financial health and market position.
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