Texas Roadhouse (NASDAQ:TXRH) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Texas Roadhouse (NASDAQ:TXRH) had its target price increased by Morgan Stanley from $212.00 to $221.00 in a report released on Thursday, Benzinga reports. The firm presently has an “overweight” rating on the restaurant operator’s stock. Morgan Stanley’s target price suggests a potential upside of 30.19% from the company’s previous close.

A number of other equities analysts have also recently issued reports on the company. UBS Group increased their target price on Texas Roadhouse from $210.00 to $235.00 and gave the stock a “buy” rating in a report on Monday, August 3rd. Wells Fargo & Company upped their price target on Texas Roadhouse from $220.00 to $230.00 and gave the company an “overweight” rating in a research report on Friday, August 7th. Barclays lowered Texas Roadhouse from an “equal weight” rating to a “cautious” rating in a research note on Wednesday. KeyCorp reissued a “sector weight” rating on shares of Texas Roadhouse in a report on Friday, October 2nd. Finally, JPMorgan Chase & Co. reduced their target price on shares of Texas Roadhouse from $202.00 to $200.00 and set a “neutral” rating on the stock in a research note on Tuesday, September 29th. Two analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Texas Roadhouse has a consensus rating of “Moderate Buy” and an average target price of $209.27.

Texas Roadhouse Price Performance

NASDAQ TXRH traded up $3.12 on Thursday, reaching $169.75. The company’s stock had a trading volume of 925,570 shares, compared to its average volume of 1,063,167. The firm has a market cap of $11.14 billion, a PE ratio of 27.11, a price-to-earnings-growth ratio of 1.61 and a beta of 0.80. The business has a 50-day moving average price of $182.30 and a 200 day moving average price of $179.34. Texas Roadhouse has a 52 week low of $153.82 and a 52 week 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 announced its quarterly earnings results on Thursday, August 6th. The restaurant operator reported $1.85 EPS for the quarter, topping analysts’ consensus estimates of $1.83 by $0.02. The firm had revenue of $1.68 billion during the quarter, compared to analysts’ expectations of $1.67 billion. Texas Roadhouse had a net margin of 6.63% and a return on equity of 27.20%. The company’s revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter last year, the company earned $1.86 earnings per share. Sell-side analysts expect that Texas Roadhouse will post 6.61 EPS for the current year.

Insider Buying and Selling

In other news, Director Gregory Moore sold 3,000 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $208.32, for a total transaction of $624,960.00. Following the sale, the director owned 26,900 shares in the company, valued at approximately $5,603,808. This represents a 10.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Lloyd Marshall sold 500 shares of the firm’s stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $204.65, for a total value of $102,325.00. Following the completion of the sale, the insider owned 9,826 shares of the company’s stock, valued at approximately $2,010,890.90. This trade represents a 4.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 19,970 shares of company stock valued at $4,061,808. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Texas Roadhouse

A number of large investors have recently modified their holdings of the stock. Curated Wealth Partners LLC acquired a new position in Texas Roadhouse in the third quarter valued at about $575,000. Fort Washington Investment Advisors Inc. OH increased its holdings in shares of Texas Roadhouse by 4.6% in the third quarter. Fort Washington Investment Advisors Inc. OH now owns 142,258 shares of the restaurant operator’s stock worth $22,241,000 after acquiring an additional 6,311 shares in the last quarter. JGP Wealth Management LLC acquired a new stake in shares of Texas Roadhouse during the third quarter worth about $353,000. Riversedge Advisors LLC raised its position in shares of Texas Roadhouse by 4.1% during the third quarter. Riversedge Advisors LLC now owns 2,125 shares of the restaurant operator’s stock worth $332,000 after purchasing an additional 84 shares during the period. Finally, Farther Finance Advisors LLC raised its position in shares of Texas Roadhouse by 24.3% during the third quarter. Farther Finance Advisors LLC now owns 1,772 shares of the restaurant operator’s stock worth $277,000 after purchasing an additional 346 shares during the period. 94.82% of the stock is currently owned by institutional investors and hedge funds.

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.