Texas Roadhouse (NASDAQ: TXRH) has seen a decrease in its price target, with the Royal Bank of Canada adjusting it from $185.00 to $175.00. This change was detailed in a research report published on November 6, 2023. The bank currently maintains a “sector perform” rating on the restaurant operator’s stock, indicating a cautious outlook.
Several other financial institutions have also recently revised their assessments of Texas Roadhouse. On October 7, JPMorgan Chase & Co. lowered its price target from $200.00 to $182.00 while assigning a “neutral” rating. In contrast, Morgan Stanley reaffirmed an “overweight” rating and set a target price of $210.00 on October 21. Meanwhile, Stifel Nicolaus increased its price objective from $180.00 to $188.00 and issued a “hold” rating on July 25.
On October 22, Zacks Research downgraded Texas Roadhouse from a “hold” rating to a “strong sell” rating. Furthermore, Evercore ISI downgraded the stock from an “outperform” rating to an “in-line” rating with a target price of $190.00 on September 4.
Overall, the consensus among analysts shows a mix of opinions: two have rated the stock as a “strong buy,” ten as a “buy,” ten as a “hold,” and one as a “sell.” Current data from MarketBeat.com reveals an average rating of “moderate buy” and a consensus price target of $193.21 for Texas Roadhouse.
Recent Earnings and Dividend Announcements
On November 6, Texas Roadhouse reported its quarterly earnings, revealing earnings per share (EPS) of $1.25, which fell short of the consensus estimate of $1.28 by $0.03. The company reported revenue of $1.44 billion for the quarter, surpassing analyst expectations of $1.43 billion. The net margin stood at 7.72%, while the return on equity was 31.52%. The revenue for this quarter reflected an increase of 12.8% year-over-year, compared to $1.26 EPS for the same period last year. Analysts forecast an EPS of 7.23 for the current year.
In a recent announcement, Texas Roadhouse declared a quarterly dividend of $0.68, set to be paid on December 30, 2023. Shareholders on record as of December 2 will qualify for this dividend, which translates to an annualized total of $2.72 and a yield of 1.6%. The ex-dividend date is also December 2, and the company’s current payout ratio is 41.59%.
Insider Trading Activity
Recent insider activity has also been notable. President Regina A. Tobin sold 3,153 shares on August 18, realizing approximately $547,140.09 from the transaction, priced at an average of $173.53. Following this sale, Tobin holds 15,261 shares, valued at around $2.65 million, which represents a 17.12% reduction in ownership.
Additionally, Director Gregory N. Moore sold 3,000 shares on the same day for a total of $519,180.00, at an average price of $173.06. After this transaction, Moore retains 34,550 shares, worth approximately $5.98 million, marking a 7.99% decrease in his holdings. In total, insiders have sold 8,342 shares valued at $1.44 million in the last three months, with insiders holding 0.50% of the stock.
Institutional investors have also been active in trading shares of Texas Roadhouse. Notable transactions include Caldwell Trust Co., which acquired a new position valued at approximately $28,000, and Brooklyn Investment Group, which increased its holdings by 478.6% in the first quarter. Other new stakes were taken by Bogart Wealth LLC and Root Financial Partners LLC, reflecting a growing interest in the company. Currently, institutional investors and hedge funds own 94.82% of Texas Roadhouse.
Founded in 1993 and headquartered in Louisville, Kentucky, Texas Roadhouse operates casual dining restaurants across the United States and internationally, including franchises under the Texas Roadhouse, Bubba’s 33, and Jaggers brands. The company continues to adapt to market conditions while aiming to enhance shareholder value amid fluctuating stock ratings.
