Brinker International (NYSE:EAT) Downgraded by Zacks Research to "Hold"

Key Points

• Zacks Research downgraded Brinker International from “strong buy” to “hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $249.80.
• Brinker beat quarterly expectations, reporting EPS of $2.77 versus $2.45 expected and revenue of $1.48 billion; revenue rose 9.4% year over year.
• The stock opened at $220.66 on Tuesday, up 6.4%; company insiders sold 213,694 shares worth about $50.4 million during the last quarter.

Brinker International (NYSE:EAT - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Tuesday, Zacks reports.

EAT has been the subject of a number of other research reports. Wall Street Zen upgraded Brinker International from a "hold" rating to a "buy" rating in a research report on Saturday, October 31st. DA Davidson lowered their price objective on Brinker International from $240.00 to $210.00 and set a "neutral" rating on the stock in a research report on Monday, September 21st. Piper Sandler boosted their price objective on Brinker International from $166.00 to $240.00 and gave the company a "neutral" rating in a research note on Monday, August 17th. Citigroup boosted their price objective on Brinker International from $270.00 to $277.00 and gave the company a "buy" rating in a research note on Thursday, October 29th. Finally, Raymond James Financial raised shares of Brinker International from an "outperform" rating to a "strong-buy" rating and reduced their target price for the stock from $270.00 to $260.00 in a report on Friday, October 16th. Two analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $249.80.

Brinker International Stock Up 6.4%

EAT opened at $220.66 on Tuesday. The firm's 50 day simple moving average is $207.25 and its two-hundred day simple moving average is $175.28. The company has a market capitalization of $9.17 billion, a PE ratio of 19.42, a PEG ratio of 1.04 and a beta of 1.37. Brinker International has a 1-year low of $100.30 and a 1-year high of $254.99. The company has a current ratio of 0.34, a quick ratio of 0.29 and a debt-to-equity ratio of 1.13.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $2.77 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.45 by $0.32. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. Brinker International had a net margin of 8.44% and a return on equity of 125.65%. The company's revenue for the quarter was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.17 EPS. As a group, equities analysts forecast that Brinker International will post 13.70 EPS for the current year.

Insider Buying and Selling

In other news, EVP Aaron M. White sold 16,220 shares of the firm's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $236.22, for a total transaction of $3,831,488.40. Following the completion of the transaction, the executive vice president owned 42,756 shares in the company, valued at $10,099,822.32. This trade represents a 27.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP James M. Butler sold 10,000 shares of the firm's stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $240.37, for a total value of $2,403,700.00. Following the transaction, the senior vice president owned 9,064 shares of the company's stock, valued at $2,178,713.68. This represents a 52.45% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 213,694 shares of company stock worth $50,383,890 in the last quarter. 1.18% of the stock is owned by insiders.

Institutional Trading of Brinker International

Large investors have recently made changes to their positions in the business. M&G PLC bought a new stake in shares of Brinker International during the third quarter worth $12,437,000. Retirement Systems of Alabama bought a new stake in Brinker International during the 3rd quarter valued at $13,399,000. Fulcrum Asset Management LLP raised its holdings in Brinker International by 15,776.2% in the third quarter. Fulcrum Asset Management LLP now owns 12,701 shares of the restaurant operator's stock worth $2,529,000 after purchasing an additional 12,621 shares in the last quarter. Allspring Global Investments Holdings LLC lifted its position in Brinker International by 0.3% during the third quarter. Allspring Global Investments Holdings LLC now owns 197,099 shares of the restaurant operator's stock valued at $38,302,000 after acquiring an additional 599 shares during the last quarter. Finally, Brighton Jones LLC boosted its position in shares of Brinker International by 4.3% in the 3rd quarter. Brighton Jones LLC now owns 1,544 shares of the restaurant operator's stock worth $299,000 after purchasing an additional 64 shares in the last quarter.

About Brinker International

Brinker International, Inc is a casual-dining restaurant company that owns, operates and franchises restaurants in the United States and select international markets. The company is headquartered in Dallas, Texas, and serves customers through company-operated and franchised locations.

Brinker's principal brands are Chili's Grill & Bar and Maggiano's Little Italy. Chili's offers a broad menu of burgers, steaks, ribs, fajitas, Tex-Mex dishes, salads and beverages in a full-service, casual setting.

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