Texas Roadhouse (NASDAQ: TXRH) experienced a price target reduction from the Royal Bank of Canada (RBC) on Friday, with the new target set at $175.00, down from a previous estimate of $185.00. The firm has maintained a sector perform rating for the casual dining chain, reflecting a cautious outlook amidst changing market conditions.
Several other financial institutions have also revised their forecasts for Texas Roadhouse recently. On October 7, JPMorgan Chase & Co. lowered its price target from $200.00 to $182.00, while categorizing the stock as neutral. In contrast, Morgan Stanley reaffirmed an “overweight” rating with a more optimistic price target of $210.00 in a report dated October 21. Meanwhile, Stifel Nicolaus increased its price target from $180.00 to $188.00, maintaining a hold rating.
Analysts have shown mixed sentiments towards Texas Roadhouse. Zacks Research has shifted its rating from hold to a strong sell on October 22, and Evercore ISI downgraded the stock from outperform to in-line, setting a price target of $190.00. Currently, the stock boasts two strong buy ratings, ten buy ratings, ten hold ratings, and one sell rating, according to data from MarketBeat.com. The consensus price target now stands at $193.21.
Earnings Report and Financial Performance
Texas Roadhouse revealed its quarterly earnings on November 6, reporting earnings per share (EPS) of $1.25. This figure fell short of analysts’ expectations, which predicted an EPS of $1.28. The company generated revenue of $1.44 billion for the quarter, slightly above the anticipated $1.43 billion. The restaurant operator reported a net margin of 7.72% and a return on equity of 31.52%, marking a year-over-year revenue increase of 12.8% compared to the previous year, where it posted $1.26 per share.
As analysts project, Texas Roadhouse is expected to achieve an EPS of $7.23 for the current fiscal year.
Dividend Announcement and Insider Activity
The company recently declared a quarterly dividend of $0.68 per share, scheduled for payment on December 30. Shareholders of record by December 2 will be eligible for this dividend, which translates to an annualized dividend of $2.72 and a yield of 1.6%. The ex-dividend date is also set for December 2. The current payout ratio stands at 41.59%.
In other developments, President Regina A. Tobin sold 3,153 shares of company stock on August 18 for an average price of $173.53, totaling approximately $547,140.09. Post-transaction, Tobin holds 15,261 shares, valued at around $2,648,241.33, reflecting a 17.12% decrease in ownership. Additionally, Director Gregory N. Moore sold 3,000 shares at an average price of $173.06, amounting to about $519,180.00. After this sale, Moore retains 34,550 shares, valued at approximately $5,979,223, which is a 7.99% reduction.
Over the last three months, insiders have sold a total of 8,342 shares worth $1,443,704. Currently, 0.50% of Texas Roadhouse’s stock is held by insiders.
Institutional Investment Trends
Recent trends indicate that several institutional investors have altered their positions in Texas Roadhouse. For instance, Caldwell Trust Co. initiated a new position in the second quarter valued at approximately $28,000. Brooklyn Investment Group significantly increased its stake by 478.6% in the first quarter, now owning 162 shares after purchasing an additional 134 shares during that timeframe.
Other notable investments include Bogart Wealth LLC, which acquired a new stake valued at $33,000, and Root Financial Partners LLC, which bought into the company during the third quarter for about $36,000. Institutional and hedge fund ownership currently represents approximately 94.82% of Texas Roadhouse’s stock.
Founded in 1993, Texas Roadhouse operates casual dining establishments across the United States and internationally, including franchises under the Texas Roadhouse, Bubba’s 33, and Jaggers brands, serving customers in 49 states and ten countries worldwide. The company is headquartered in Louisville, Kentucky.
