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Dominic Dragisich, Executive Vice President and Chief Global Brands Officer at Choice Hotels International Inc . (NYSE:CHH), recently executed a series of stock transactions. On February 25, Dragisich sold a total of 3,500 shares of Choice Hotels common stock. The shares were sold at prices ranging from $148.11 to $149.61, amounting to a total transaction value of $519,057. The transaction occurred near the stock’s 52-week high of $157.86, with Choice Hotels maintaining impressive gross profit margins of 89.5%. According to InvestingPro analysis, the company’s overall financial health score is rated as GOOD.
Additionally, Dragisich exercised options to acquire 3,500 shares at a price of $91.28 each, adding $319,480 to his holdings. Following these transactions, Dragisich holds 68,913 shares directly. These transactions were conducted under a pre-established 10b5-1 trading plan. The $6.83 billion hospitality company has demonstrated consistent performance, with InvestingPro noting historically low price volatility. Discover more insights and 8 additional ProTips about Choice Hotels in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Choice Hotels International, Inc. reported its fourth quarter 2024 earnings before interest, taxes, depreciation, and amortization (EBITDA) at $140 million, exceeding JPMorgan’s estimate by 6% and showing a 12% year-over-year increase. This was supported by higher marketing and reservation revenues, which outperformed expectations by 13%, and Owned Hotel revenues, which were 12% above estimates. However, the company faced higher-than-expected selling, general, and administrative expenses. In a separate development, Morgan Stanley (NYSE:MS) downgraded Choice Hotels from Equalweight to Underweight, adjusting the price target to $129.00 from $145.00, citing competitive pressures and weaker free cash flow conversion. The downgrade reflects concerns about the company’s strategy and its impact on revenue per available room compared to peers. Additionally, Choice Hotels announced the upcoming departure of Chief Commercial Officer Robert McDowell, effective January 2025, which marks a significant leadership change. The company has yet to announce a successor for McDowell. These recent developments highlight both the financial achievements and strategic challenges facing Choice Hotels.
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