Brinker International (NYSE:EAT) Stock Price Target Cut by TD Cowen

Key Points

• TD Cowen lowered Brinker International’s price target from $270 to $250 while maintaining a “buy” rating, implying 22.26% upside from the prior close.
• Analyst sentiment remains favorable, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $246.24.
• Brinker reported $1.54 billion in quarterly revenue, up 5.1% year over year, but narrowly missed EPS expectations; meanwhile, company insiders sold $41.6 million of stock over the past 90 days.

Brinker International (NYSE:EAT - Get Free Report) had its target price reduced by investment analysts at TD Cowen from $270.00 to $250.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the restaurant operator's stock. TD Cowen's price objective points to a potential upside of 22.26% from the stock's previous close.

Other equities research analysts have also recently issued reports about the company. Piper Sandler boosted their price target on Brinker International from $166.00 to $240.00 and gave the company a "neutral" rating in a research note on Monday, August 17th. Mizuho raised their price objective on Brinker International from $175.00 to $275.00 and gave the stock an "outperform" rating in a research note on Thursday, August 13th. Weiss Ratings upgraded Brinker International from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 11th. BMO Capital Markets increased their target price on Brinker International from $175.00 to $230.00 and gave the stock a "market perform" rating in a report on Thursday, August 13th. Finally, UBS Group raised their price target on Brinker International from $190.00 to $260.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $246.24.

Brinker International Trading Up 0.1%

EAT stock opened at $204.49 on Friday. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.40 and a current ratio of 0.45. The company's 50-day simple moving average is $216.94 and its 200 day simple moving average is $180.76. Brinker International has a 52 week low of $100.30 and a 52 week high of $254.99. The company has a market capitalization of $8.54 billion, a PE ratio of 18.78, a price-to-earnings-growth ratio of 1.06 and a beta of 1.25.

Brinker International (NYSE:EAT - Get Free Report) last released its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). Brinker International had a return on equity of 122.35% and a net margin of 8.39%. The business had revenue of $1.54 billion for the quarter, compared to the consensus estimate of $1.53 billion. During the same period in the prior year, the business posted $2.30 earnings per share. Brinker International's revenue was up 5.1% compared to the same quarter last year. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. As a group, sell-side analysts anticipate that Brinker International will post 13.16 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP George S. Felix sold 14,349 shares of the company's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $237.47, for a total transaction of $3,407,457.03. Following the completion of the sale, the executive vice president directly owned 6,293 shares in the company, valued at $1,494,398.71. This represents a 69.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Kevin Hochman sold 40,000 shares of the firm's stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $243.15, for a total value of $9,726,000.00. Following the completion of the sale, the chief executive officer directly owned 144,090 shares in the company, valued at $35,035,483.50. This trade represents a 21.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 173,694 shares of company stock worth $41,568,690. 1.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Freestone Grove Partners LP acquired a new stake in shares of Brinker International in the 2nd quarter valued at approximately $91,237,000. Bank of America Corp DE acquired a new position in Brinker International during the 2nd quarter worth approximately $39,687,000. Wellington Management Group LLP increased its position in Brinker International by 63.7% during the 2nd quarter. Wellington Management Group LLP now owns 413,472 shares of the restaurant operator's stock worth $69,463,000 after purchasing an additional 160,939 shares in the last quarter. Assenagon Asset Management S.A. lifted its stake in Brinker International by 53.7% in the 1st quarter. Assenagon Asset Management S.A. now owns 456,565 shares of the restaurant operator's stock valued at $65,184,000 after purchasing an additional 159,606 shares during the last quarter. Finally, BlackRock Inc. lifted its stake in Brinker International by 2.2% in the 2nd quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock valued at $1,130,552,000 after purchasing an additional 145,525 shares during the last quarter.

Brinker International Company Profile

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining establishments. Its portfolio is led by Chili's Grill & Bar, a full-service restaurant brand known for burgers, steaks, fajitas, ribs and other American-style menu items, and Maggiano's Little Italy, which specializes in Italian-American cuisine and operates both restaurants and catering services.

Brinker also developed It's Just Wings, a virtual restaurant brand offering chicken wings, fries and related items through delivery and takeout.

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