Patrick Pacious, the President and CEO of Choice Hotels International Inc . (NYSE:CHH), recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. On November 4, Pacious sold a total of 10,960 shares of Choice Hotels' common stock. These sales were conducted at prices ranging from $144.65 to $149.07 per share, amounting to a total value of approximately $1.6 million.
In addition to the sales, Pacious also acquired 10,960 shares through the exercise of employee stock options at a price of $81.55 per share. Following these transactions, Pacious holds 404,666 shares of the company directly.
These transactions were carried out under a pre-established 10b5-1 trading plan, which allows insiders to set up a predetermined schedule for selling stocks to avoid potential accusations of insider trading.
In other recent news, Choice Hotels International, Inc. has reported a strong third-quarter performance, with significant growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), and earnings per share (EPS). The company has raised its full-year guidance for adjusted net income and EPS, projecting a 10% growth in adjusted EBITDA. These recent developments indicate a robust performance and potential for future growth for Choice Hotels.
Baird has maintained an Outperform rating on Choice Hotels, while raising the price target to $145.00 from the previous $138.00. This adjustment reflects a positive stance on the company's performance. Meanwhile, Jefferies has revised its stance on Choice Hotels, moving its rating from Buy to Hold. Goldman Sachs has maintained a Sell rating on Choice Hotels, despite increasing the price target.
Choice Hotels' global hotel pipeline has expanded to over 110,000 rooms, marking an 11% year-over-year increase. The company opened 75% more hotels globally compared to the same quarter the previous year and noted a 1.8% net increase in global rooms in more revenue-intensive brands. However, Goldman Sachs expressed concern about the deceleration of the company's global pipeline for the second quarter in a row.
InvestingPro Insights
The recent stock transactions by Choice Hotels International Inc.'s CEO Patrick Pacious align with several key insights from InvestingPro. According to InvestingPro data, Choice Hotels has a market capitalization of $6.73 billion, reflecting its significant presence in the hospitality industry. The company's P/E ratio of 27.73 suggests that investors are willing to pay a premium for its earnings, potentially due to its strong market position and growth prospects.
One InvestingPro Tip highlights that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future and may help explain the CEO's stock option exercise. Additionally, Choice Hotels boasts impressive gross profit margins, with InvestingPro data showing a gross profit margin of 89.74% for the last twelve months as of Q3 2024. This high margin indicates the company's efficiency in converting revenue into profit, which is particularly noteworthy in the competitive hotel industry.
It's also worth noting that Choice Hotels has maintained dividend payments for 21 consecutive years, as pointed out by another InvestingPro Tip. This consistent dividend history, combined with the current dividend yield of 0.82%, may appeal to income-focused investors and contribute to the stock's attractiveness.
The company's stock performance has been strong, with a year-to-date price total return of 23.94% and a one-year return of 24.37%. Moreover, the stock is trading near its 52-week high, with the current price at 96.49% of its peak. This performance aligns with the InvestingPro Tip indicating that the stock is trading near its 52-week high, suggesting investor confidence in the company's prospects.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Choice Hotels International Inc., providing a deeper understanding of the company's financial health and market position.
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