Choice Hotels International (NYSE:CHH) Overbought but Is That a Sell Indicator?

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Choice Hotels International (NYSE:CHH) has reached overbought status with an RSI(14) at 87.73 .

The Relative Strength Index (RSI) is one of the most widely used technical indicators used to determine strengthening and weakening momentum in stock movements. RSI levels above 70 are considered overbought while an RSI of under 30 is considered oversold. Overbought is a condition that occurs when price momentum is considered too high and susceptible to a decline.

Volatility

(NYSE:CHH) currently has a beta of 1.11 making it more volatile than the market as a whole. Stocks with a beta lower than the market are less risky than the market and those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is currently 1.41. The ATR is a short term indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Choice Hotels International in recent headlines.

Choice Hotels to Develop New Cambria Hotel in Baltimore
Cambria Hotels on Pace to Set Record Year with Most Openings and Largest Pipeline in Brand’s History
Ascend Hotel Collection Adds 13 Hotels in October
Choice Hotels to Develop New Cambria Hotel in Rock Hill, S.C.
Choice Hotels International Reports Third Quarter Financial Results.

Short Interest

Short traders are feeling a little more bullish on Choice Hotels International of late if you take note of the change in short interest. The company had a fall in short interest of -6.85% between October 13, 2017 and October 31, 2017. Short shares fell 43,695 over that period. With short interest at 593,976 and short average daily volume at 212,238, the short-interest ratio is 3.0 and the short interest percentage is 0.01% as of October 31.

Recent Analyst Ratings

Equity analyst Barclays PLC raised the price target on November 7 changing the price objective from $60.00 to $67.00 and issued a “Underweight” recommendation. On August 4 Barclays PLC kept the stock rating at “Underweight” projecting a price of $60.00.

Deutsche Bank AG lowered the price target of the stock on August 3 cutting the projection from $68.00 to $66.00 and stated a “Hold” rating.

The P/E ratio is 28.66 and the market cap is 4.38B. As of the last earnings report the EPS was $2.70 with 56.59M shares currently outstanding.

Company Information

Choice Hotels International, Inc. (Choice), launched on December 12, 1980, is a hotel franchisor. The Business’s segments include Hotel Franchising, SkyTouch Technology (SkyTouch) and Corporate & Other. Choice franchises lodging properties under various brand names, including Comfort Inn, Comfort Suites, Quality, Clarion, Sleep Inn, Econo Lodge, Rodeway Inn, MainStay Suites, Suburban Extended Stay Hotel, Cambria hotels & suites, and Ascend Hotel Collection (collectively, the Choice brands). The Company had 6,514 hotels open and 775 hotels under construction, awaiting conversion or approved for development as of December 31, 2016 representing 516,122 rooms open and 62,547 rooms under construction, awaiting conversion or approved for development in 50 states, the District of Columbia and over 40 countries and territories outside the United States. The Business’s domestic franchising operations are conducted through direct franchising relationships while its international franchise operations are conducted through a combination of direct franchising and master franchising relationships..