Choice Hotels International, Inc (CHH) Shares Decline Despite Market Challenges

Choice Hotels International, Inc (NYSE: CHH)’s stock price has decreased by -0.87 compared to its previous closing price of 124.52. However, the company has seen a -4.45% decrease in its stock price over the last five trading sessions. prnewswire.com reported 2025-06-03 that Leisure, business travelers and adventure-seekers alike can access a growing number of stunning hotels including an upcoming Radisson Blu in Bariloche, Argentina; The Ascend Collection’s Ice Hotel in Sweden; Cambria Hotel’s first property in Canada, coming to Ontario in 2026; and nearly 70 Ascend Collection hotels across China this year NORTH BETHESDA, Md., June 3, 2025 /PRNewswire/ — Choice Hotels International, Inc. (NYSE: CHH), one of the world’s largest and most successful lodging franchisors, continues to expand its international footprint, with 31 hotels and more than 3,300 rooms on-boarded year-to-date outside of the U.S., and over 11,000 rooms added to the pipeline over the same period, resulting in a net pipeline increase of 95% since the beginning of the year.

Is It Worth Investing in Choice Hotels International, Inc (NYSE: CHH) Right Now?

The price-to-earnings ratio for Choice Hotels International, Inc (NYSE: CHH) is 18.77x, which is above its average ratio. Moreover, the 36-month beta value for CHH is 0.99. Analysts have varying opinions on the stock, with 3 analysts rating it as a “buy,” 1 as “overweight,” 9 as “hold,” and 1 as “sell.”

The public float for CHH is 26.09M and currently, short sellers hold a 23.25% of that float. On June 19, 2025, CHH’s average trading volume was 438.94K shares.

CHH’s Market Performance

CHH’s stock has seen a -4.45% decrease for the week, with a -7.04% drop in the past month and a -6.39% fall in the past quarter. The volatility ratio for the week is 1.56%, and the volatility levels for the past 30 days are at 1.64% for Choice Hotels International, Inc The simple moving average for the past 20 days is -2.96% for CHH’s stock, with a -9.34% simple moving average for the past 200 days.

Analysts’ Opinion of CHH

Many brokerage firms have already submitted their reports for CHH stocks, with Goldman repeating the rating for CHH by listing it as a “Buy.” The predicted price for CHH in the upcoming period, according to Goldman is $138 based on the research report published on April 14, 2025 of the current year 2025.

Redburn Atlantic, on the other hand, stated in their research note that they expect to see CHH reach a price target of $132. The rating they have provided for CHH stocks is “Neutral” according to the report published on March 24th, 2025.

Morgan Stanley gave a rating of “Underweight” to CHH, setting the target price at $129 in the report published on January 14th of the current year.

CHH Trading at -2.30% from the 50-Day Moving Average

After a stumble in the market that brought CHH to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -21.80% of loss for the given period.

Insider Trading

Reports are indicating that there were more than several insider trading activities at CHH starting from ERVIN SHAMES, who proposed sale 2,000 shares at the price of $129.56 back on May 19 ’25. After this action, ERVIN SHAMES now owns shares of Choice Hotels International, Inc, valued at $259,111 using the latest closing price.

SHAMES ERVIN R, the Director of Choice Hotels International, Inc, sale 2,000 shares at $129.56 during a trade that took place back on May 19 ’25, which means that SHAMES ERVIN R is holding 52,212 shares at $259,120 based on the most recent closing price.

Stock Fundamentals for CHH

Current profitability levels for the company are sitting at:

  • 0.31 for the present operating margin
  • 0.48 for the gross margin

The net margin for Choice Hotels International, Inc stands at 0.2. The total capital return value is set at 0.23. Equity return is now at value 876.44, with 12.33 for asset returns.

Based on Choice Hotels International, Inc (CHH), the company’s capital structure generated 1.03 points at debt to capital in total, while cash flow to debt ratio is standing at 0.17. The debt to equity ratio resting at -31.08. The interest coverage ratio of the stock is 5.49.

Currently, EBITDA for the company is 553.64 million with net debt to EBITDA at 3.56. When we switch over and look at the enterprise to sales, we see a ratio of 4.84. The receivables turnover for the company is 8.16for trailing twelve months and the total asset turnover is 0.62. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.84.

Conclusion

To wrap up, the performance of Choice Hotels International, Inc (CHH) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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