Texas Roadhouse (NASDAQ:TXRH) Cut to “Sell” at Wall Street Zen

Wall Street Zen cut shares of Texas Roadhouse (NASDAQ:TXRH) from a hold rating to a sell rating in a research note issued to investors on Saturday.

A number of other research analysts have also recently issued reports on the stock. Mizuho raised shares of Texas Roadhouse to a “strong-buy” rating in a research note on Tuesday, October 28th. Truist Financial reduced their target price on Texas Roadhouse from $210.00 to $195.00 and set a “buy” rating on the stock in a report on Friday, November 7th. Stephens lowered their price target on Texas Roadhouse from $175.00 to $168.00 and set an “equal weight” rating for the company in a report on Friday, November 7th. Barclays dropped their price objective on Texas Roadhouse from $187.00 to $170.00 and set an “equal weight” rating for the company in a research report on Friday, November 7th. Finally, Royal Bank Of Canada reduced their price objective on Texas Roadhouse from $185.00 to $175.00 and set a “sector perform” rating on the stock in a research note on Friday, November 7th. Two analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $194.26.

Texas Roadhouse Stock Up 1.7%

TXRH stock opened at $174.32 on Friday. The company has a market cap of $11.53 billion, a PE ratio of 26.65, a price-to-earnings-growth ratio of 2.70 and a beta of 0.89. The business has a 50-day simple moving average of $168.71 and a 200 day simple moving average of $173.53. Texas Roadhouse has a 52 week low of $148.73 and a 52 week high of $199.99.

Texas Roadhouse (NASDAQ:TXRH) last announced its quarterly earnings data on Thursday, November 6th. The restaurant operator reported $1.25 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.28 by ($0.03). Texas Roadhouse had a return on equity of 30.59% and a net margin of 7.49%.The firm had revenue of $1.44 billion for the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the previous year, the company earned $1.26 earnings per share. The company’s quarterly revenue was up 12.8% on a year-over-year basis. On average, analysts anticipate that Texas Roadhouse will post 7.23 EPS for the current fiscal year.

Texas Roadhouse Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, December 30th. Shareholders of record on Tuesday, December 2nd were issued a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend was Tuesday, December 2nd. Texas Roadhouse’s dividend payout ratio is presently 41.59%.

Insider Activity

In related news, Director Gregory N. Moore sold 1,400 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $170.00, for a total value of $238,000.00. Following the completion of the transaction, the director owned 32,150 shares in the company, valued at $5,465,500. This trade represents a 4.17% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Hugh J. Carroll sold 1,000 shares of Texas Roadhouse stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $167.27, for a total transaction of $167,270.00. Following the sale, the director owned 1,854 shares in the company, valued at approximately $310,118.58. This represents a 35.04% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Texas Roadhouse

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. GAMMA Investing LLC raised its stake in shares of Texas Roadhouse by 32.8% during the fourth quarter. GAMMA Investing LLC now owns 2,016 shares of the restaurant operator’s stock valued at $335,000 after acquiring an additional 498 shares during the last quarter. Lindenwold Advisors INC increased its holdings in Texas Roadhouse by 112.3% in the third quarter. Lindenwold Advisors INC now owns 3,928 shares of the restaurant operator’s stock valued at $653,000 after purchasing an additional 2,078 shares during the period. Hudson Bay Capital Management LP acquired a new stake in Texas Roadhouse in the third quarter valued at $6,603,000. Allworth Financial LP raised its position in Texas Roadhouse by 40.3% during the 3rd quarter. Allworth Financial LP now owns 1,576 shares of the restaurant operator’s stock worth $262,000 after purchasing an additional 453 shares during the last quarter. Finally, Swiss Life Asset Management Ltd lifted its holdings in Texas Roadhouse by 79.4% during the 3rd quarter. Swiss Life Asset Management Ltd now owns 3,089 shares of the restaurant operator’s stock worth $513,000 after buying an additional 1,367 shares during the period. 94.82% of the stock is currently owned by institutional investors and hedge funds.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand‐cut steaks, fall‐off‐the‐bone ribs, chicken, seafood and house specialties. Each restaurant features a Western‐themed décor, open kitchens and a signature line dance presentation of fresh, made‐from‐scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family‐friendly environment.

The concept was created in 1993 by founder Kent Taylor, who sought to combine high‐quality steaks with an approachable, community‐oriented atmosphere.