Patrick Cimerola, Chief Human Resources Officer at Choice Hotels (NYSE:) International Inc. (NYSE:CHH), recently sold shares of the company worth about $1.78 million. The sales occurred on October 11 and 14, 2024 and involved multiple transactions at prices ranging from $135.00 to $135.10 per share.
In addition to the sales, Cimerola exercised stock options, acquiring shares at prices between $81.15 and $104.87 per share. The total value of these option exercises amounted to $732,520. Following these transactions, Cimerola’s direct ownership stands at 18,083.9 shares.
These transactions were part of a pre-established business plan, as indicated in the document.
In other recent news, Choice Hotels International reported strong financial results for the second quarter, including a 14% increase in revenue to $258.9 million and 6% growth in adjusted EBITDA to a record 161.7 million dollars. The company expects adjusted EBITDA growth of 9% through 2024, supported by 8% year-over-year growth in domestic franchise deals and a 22% increase in the global pipeline. These recent developments are further bolstered by the company’s success in conversions and new build projects, particularly in the midscale and extended stay brands.
On the other hand, Goldman Sachs initiated coverage of Choice Hotels International with a Sell rating and a price target of $105.00, expressing concern about the hotel chain’s financial projections for the coming years. The firm anticipates EBITDA growth of approximately 2% in 2025, which contrasts with the company’s guidance. Goldman Sachs is also 5% and 7% below consensus earnings per share estimates for 2025 and 2026, respectively.
Despite these challenges, Choice Hotels remains committed to unit and franchise fee growth, supported by a strong cash position for future investments and shareholder returns. These are recent developments in the company’s operations.
InvestingPro Insights
Recent stock market transactions Choice Hotels International Inc. (NYSE:CHH) Chief Human Resources Officer Patrick Cimerola aligns with several key financial indicators and trends for the company. According to data from InvestingPro, Choice Hotels has a market capitalization of $6.34 billion and is currently trading near its 52-week high, with the share price 99.28% away from its high.
The company’s financial health appears strong, with an impressive gross profit margin of 90.13% for the trailing twelve months to Q2 2024. This aligns with one of InvestingPro’s tips, which highlights the “impressive margins gross profit” from Choice Hotels. Additionally, the company has maintained dividend payments for 21 consecutive years, demonstrating a commitment to shareholder returns.
Despite Cimerola’s recent share sale, it’s worth noting that management has been aggressively buying back shares, according to another tip from InvestingPro. This could indicate confidence in the company’s future prospects. The company’s P/E (Adjusted) ratio stands at 22.34, which when considered alongside its revenue growth of 4.02% in the trailing twelve months, suggests a premium valuation.
For investors seeking a deeper understanding of Choice Hotels’ financial position, InvestingPro offers additional information with 7 more tips available, providing a comprehensive view of the company’s strengths and potential areas of concern.
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