Royal Bank Of Canada Issues Pessimistic Forecast for Texas Roadhouse (NASDAQ:TXRH) Stock Price

Key Points

• Royal Bank of Canada lowered Texas Roadhouse’s price target from $235 to $220 while maintaining an “outperform” rating, implying roughly 40% upside from the $157.11 share price.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $209.76, despite the range of Buy, Hold, and Strong Buy recommendations.
• Texas Roadhouse exceeded quarterly expectations, reporting $1.85 in earnings per share and $1.68 billion in revenue, while revenue rose 11.1% year over year; however, insiders sold nearly 20,000 shares worth about $4.1 million over the past three months.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price target lowered by Royal Bank Of Canada from $235.00 to $220.00 in a research report issued to clients and investors on Monday, Benzinga reports. The firm currently has an "outperform" rating on the restaurant operator's stock. Royal Bank Of Canada's target price points to a potential upside of 40.03% from the stock's current price.

A number of other equities research analysts have also recently commented on the company. UBS Group increased their price target on Texas Roadhouse from $210.00 to $235.00 and gave the company a "buy" rating in a research note on Monday, August 3rd. Seaport Research Partners assumed coverage on shares of Texas Roadhouse in a research note on Wednesday, September 16th. They issued a "buy" rating and a $195.00 target price for the company. Morgan Stanley restated an "overweight" rating and set a $212.00 price target on shares of Texas Roadhouse in a research note on Friday, August 7th. Weiss Ratings raised shares of Texas Roadhouse from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, September 9th. Finally, Citigroup boosted their price objective on shares of Texas Roadhouse from $193.00 to $209.00 and gave the company a "neutral" rating in a report on Friday, August 7th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and twelve have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $209.76.

Texas Roadhouse Trading Up 0.6%

Shares of NASDAQ:TXRH opened at $157.11 on Monday. The company has a market capitalization of $10.31 billion, a PE ratio of 25.25, a P/E/G ratio of 1.55 and a beta of 0.80. 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 has a 12-month low of $153.82 and a 12-month high of $216.30. The business's fifty day simple moving average is $189.49 and its 200-day simple moving average is $179.73.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The restaurant operator reported $1.85 earnings per share for the quarter, beating analysts' consensus estimates of $1.83 by $0.02. The company had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.67 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%.The firm'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. As a group, equities research analysts predict that Texas Roadhouse will post 6.61 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, insider Lloyd Marshall sold 500 shares of the business's stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $204.65, for a total transaction of $102,325.00. Following the completion of the transaction, the insider owned 9,826 shares in the company, valued at approximately $2,010,890.90. The trade was a 4.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Gregory N. Moore sold 3,000 shares of the stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $208.32, for a total value of $624,960.00. Following the completion of the transaction, the director owned 26,900 shares in the company, valued at approximately $5,603,808. The trade was a 10.03% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 19,970 shares of company stock worth $4,061,808 over the last three months. 0.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Texas Roadhouse in the second quarter valued at about $1,273,173,000. Capital World Investors increased its holdings in shares of Texas Roadhouse by 13.4% during the 4th quarter. Capital World Investors now owns 2,537,290 shares of the restaurant operator's stock worth $421,190,000 after buying an additional 300,405 shares during the last quarter. Wellington Management Group LLP increased its stake in Texas Roadhouse by 8.4% during the second quarter. Wellington Management Group LLP now owns 1,541,791 shares of the restaurant operator's stock worth $297,920,000 after acquiring an additional 119,803 shares during the last quarter. Dimensional Fund Advisors LP lifted its stake in shares of Texas Roadhouse by 4.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 864,006 shares of the restaurant operator's stock valued at $142,670,000 after purchasing an additional 34,385 shares in the last quarter. Finally, Bessemer Group Inc. increased its position in shares of Texas Roadhouse by 38.1% in the first quarter. Bessemer Group Inc. now owns 732,411 shares of the restaurant operator's stock worth $120,951,000 after acquiring an additional 202,241 shares in the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

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.

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