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Bruce Bainum, a significant shareholder in Choice Hotels International Inc . (NYSE:CHH), recently executed a substantial stock sale. According to the latest SEC filings, Bainum sold a portion of his stake in White Oak Legacy, Inc., an investment company, for $36.2 million. This transaction involved a transfer of shares to trusts benefiting his descendants. The sale comes as Choice Hotels, currently valued at $7.07 billion, trades near its 52-week high of $153.81. InvestingPro data shows the stock has gained over 34% in the past six months.
The filing also detailed other transactions involving Bainum, including the acquisition of shares through distributions from various trusts and entities. However, these acquisitions were recorded at zero cost, as they were internal transfers within family trusts.
Following these transactions, Bainum retains a significant interest in Choice Hotels, with a portion of shares owned by White Oak Legacy, Inc. The filing illustrates the ongoing management and restructuring of Bainum's holdings within family trusts and investment entities. According to InvestingPro analysis, the stock currently trades above its Fair Value, with a P/E ratio of 29.18.
In other recent news, Choice Hotels International, Inc. reported a strong third-quarter performance. The company surpassed earnings and revenue expectations, leading to an increase in its full-year guidance for adjusted net income and earnings per share (EPS). The hotel chain also reported an 11% year-over-year increase in its global hotel pipeline, which now stands at over 110,000 rooms. Analyst firms Baird, Jefferies, and Goldman Sachs reviewed these recent developments, leading to varied stances on the company's trajectory.
Baird maintained an Outperform rating on Choice Hotels and increased the price target to $145, citing improved fundamental trends. Jefferies, however, downgraded its rating from Buy to Hold, citing a balanced current valuation post-Wyndham deal. Goldman Sachs, despite increasing the price target, maintained a Sell rating due to concerns about the company's global pipeline deceleration.
These recent developments indicate a robust performance and potential for future growth for Choice Hotels. However, analysts' caution due to pipeline concerns and valuation adjustments highlights the need for careful consideration of these factors in investment decisions.
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