Texas Roadhouse, Inc. (NASDAQ:TXRH) Stock Now Rated “Moderate Buy” by Wall Street Brokerages

Texas Roadhouse, Inc. (NASDAQ:TXRH) has earned a consensus recommendation of “Moderate Buy” from the twenty-three research firms that are currently covering the firm, MarketBeat Ratings reports. Twelve investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $209.76.

A number of brokerages have recently weighed in on TXRH. Piper Sandler boosted their price objective on shares of Texas Roadhouse from $192.00 to $208.00 and gave the stock a “neutral” rating in a report on Monday, August 10th. BTIG Research lifted their target price on shares of Texas Roadhouse from $200.00 to $220.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. Benchmark reissued a “hold” rating on shares of Texas Roadhouse in a research note on Monday, August 10th. JPMorgan Chase & Co. cut their price target on shares of Texas Roadhouse from $202.00 to $200.00 and set a “neutral” rating for the company in a research report on Tuesday, September 29th. Finally, Morgan Stanley restated an “overweight” rating and set a $212.00 price target on shares of Texas Roadhouse in a research report on Friday, August 7th.

Texas Roadhouse Stock Performance

Shares of NASDAQ TXRH opened at $163.57 on Wednesday. The stock’s 50-day moving average is $187.82 and its 200 day moving average is $179.61. The stock has a market cap of $10.74 billion, a price-to-earnings ratio of 26.17, a P/E/G ratio of 1.57 and a beta of 0.80. Texas Roadhouse has a 1-year low of $153.82 and a 1-year high of $216.30. The company has a current ratio of 0.46, a quick ratio of 0.39 and a debt-to-equity ratio of 0.03.

Texas Roadhouse (NASDAQ:TXRH) last issued its earnings results on Thursday, August 6th. The restaurant operator reported $1.85 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.83 by $0.02. The business had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.67 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%.Texas Roadhouse’s revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.86 earnings per share. On average, sell-side analysts anticipate that Texas Roadhouse will post 6.61 EPS for the current fiscal year.

Texas Roadhouse Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 29th. Stockholders of record on Tuesday, September 1st were paid a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend was Tuesday, September 1st. Texas Roadhouse’s payout ratio is 48.00%.

Insider Activity at Texas Roadhouse

In related news, insider Lloyd Marshall sold 500 shares of the firm’s stock in a transaction that occurred on Wednesday, August 26th. The stock was sold at an average price of $204.65, for a total transaction of $102,325.00. Following the transaction, the insider directly owned 9,826 shares in the company, valued at $2,010,890.90. This trade represents a 4.84% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Donna Epps sold 820 shares of Texas Roadhouse stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $206.56, for a total value of $169,379.20. Following the completion of the transaction, the director directly owned 4,042 shares in the company, valued at $834,915.52. This trade represents a 16.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,970 shares of company stock worth $4,061,808 over the last three months. Corporate insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in TXRH. Versant Capital Management Inc increased its position in shares of Texas Roadhouse by 155.1% in the third quarter. Versant Capital Management Inc now owns 528 shares of the restaurant operator’s stock valued at $83,000 after acquiring an additional 321 shares during the period. Cim Investment Management Inc. boosted its holdings in shares of Texas Roadhouse by 7.3% during the second quarter. Cim Investment Management Inc. now owns 1,935 shares of the restaurant operator’s stock worth $374,000 after purchasing an additional 131 shares during the period. QRG Capital Management Inc. grew its stake in shares of Texas Roadhouse by 23.7% in the second quarter. QRG Capital Management Inc. now owns 5,882 shares of the restaurant operator’s stock worth $1,137,000 after purchasing an additional 1,128 shares during the last quarter. WINTON GROUP Ltd bought a new stake in shares of Texas Roadhouse in the second quarter worth about $232,000. Finally, NewEdge Advisors LLC increased its holdings in Texas Roadhouse by 21.7% during the 2nd quarter. NewEdge Advisors LLC now owns 3,909 shares of the restaurant operator’s stock valued at $755,000 after purchasing an additional 696 shares during the period. 94.82% of the stock is owned by hedge funds and other institutional investors.

About Texas Roadhouse

Texas Roadhouse, Inc is a casual dining restaurant company that operates and franchises restaurants under the Texas Roadhouse, Bubba’s 33 and Jaggers brands. Its restaurants are known for hand-cut steaks, made-from-scratch sides, fresh-baked bread and a lively, Western-themed atmosphere.

Founded in 1993 and headquartered in Louisville, Kentucky, Texas Roadhouse has grown into an international restaurant operator with locations across the United States and in select foreign markets. The company’s business includes company-operated restaurants, franchised and licensed locations, and related support activities.

Texas Roadhouse primarily serves full-service casual dining customers, while Bubba’s 33 focuses on burgers, pizza and other American favorites in a sports-oriented setting.