Is Choice Hotels International, Inc. (NYSE:CHH) a buy here? The best stock pickers are becoming hopeful. The number of long hedge fund bets advanced by 3 lately.
In the financial world, there are plenty of indicators shareholders can use to monitor the equity markets. A pair of the most innovative are hedge fund and insider trading activity. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform their index-focused peers by a very impressive amount (see just how much).
Equally as integral, bullish insider trading sentiment is another way to break down the marketplace. Obviously, there are plenty of reasons for an upper level exec to get rid of shares of his or her company, but only one, very simple reason why they would initiate a purchase. Several academic studies have demonstrated the market-beating potential of this tactic if shareholders know what to do (learn more here).
With these “truths” under our belt, we’re going to take a peek at the recent action encompassing Choice Hotels International, Inc. (NYSE:CHH).
How have hedgies been trading Choice Hotels International, Inc. (NYSE:CHH)?
At the end of the first quarter, a total of 7 of the hedge funds we track held long positions in this stock, a change of 75% from one quarter earlier. With the smart money’s sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their holdings considerably.
When looking at the hedgies we track, John Overdeck and David Siegel’s Two Sigma Advisors had the largest position in Choice Hotels International, Inc. (NYSE:CHH), worth close to $2.6 million, accounting for less than 0.1%% of its total 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $2.6 million position; the fund has less than 0.1%% of its 13F portfolio invested in the stock. Other hedgies with similar optimism include Joel Greenblatt’s Gotham Asset Management, Israel Englander’s Catapult Capital Management and Jim Simons’s Renaissance Technologies.
With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the biggest position in Choice Hotels International, Inc. (NYSE:CHH). Two Sigma Advisors had 2.6 million invested in the company at the end of the quarter. Israel Englander’s Catapult Capital Management also initiated a $0.8 million position during the quarter. The other funds with new positions in the stock are Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management.
What do corporate executives and insiders think about Choice Hotels International, Inc. (NYSE:CHH)?
Insider purchases made by high-level executives is best served when the company we’re looking at has experienced transactions within the past 180 days. Over the last 180-day time period, Choice Hotels International, Inc. (NYSE:CHH) has seen zero unique insiders buying, and 4 insider sales (see the details of insider trades here).
Let’s go over hedge fund and insider activity in other stocks similar to Choice Hotels International, Inc. (NYSE:CHH). These stocks are China Lodging Group, Ltd (ADR) (NASDAQ:HTHT), Orient-Express Hotels Ltd. (NYSE:OEH), Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), Ctrip.com International, Ltd. (ADR) (NASDAQ:CTRP), and Ryman Hospitality Properties, Inc. (REIT) (NYSE:RHP). This group of stocks are in the lodging industry and their market caps resemble CHH’s market cap.