Texas Roadhouse (NASDAQ:TXRH) Price Target Raised to $227.00

Key Points

• Bank of America raised its Texas Roadhouse price target to $227 from $225 and reiterated a Buy rating, implying 18.36% potential upside from the stock’s current price.
• Analyst sentiment is broadly positive: Texas Roadhouse has a consensus “Moderate Buy” rating and an average price target of $208.43.
• Quarterly revenue rose 9.5% year over year to $1.57 billion, but fell short of estimates; EPS of $1.36 also missed the $1.46 consensus, despite increasing from $1.25 a year earlier.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price objective raised by Bank of America from $225.00 to $227.00 in a research report issued on Friday, Benzinga reports. The firm currently has a "buy" rating on the restaurant operator's stock. Bank of America's target price indicates a potential upside of 18.36% from the stock's current price.

Several other equities analysts have also weighed in on the stock. Robert W. Baird upgraded shares of Texas Roadhouse to a "strong-buy" rating in a report on Monday, August 24th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $235.00 target price on shares of Texas Roadhouse in a research note on Monday, August 3rd. TD Cowen decreased their target price on Texas Roadhouse from $230.00 to $195.00 and set a "buy" rating for the company in a research report on Friday, October 16th. Evercore set a $220.00 price target on Texas Roadhouse in a research note on Friday, September 25th. Finally, Barclays downgraded Texas Roadhouse from an "equal weight" rating to a "cautious" rating in a research note on Wednesday, October 14th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Texas Roadhouse presently has a consensus rating of "Moderate Buy" and a consensus price target of $208.43.

Texas Roadhouse Stock Down 2.4%

Texas Roadhouse stock opened at $191.79 on Friday. The company has a market capitalization of $12.59 billion, a PE ratio of 30.69, a PEG ratio of 2.13 and a beta of 0.81. Texas Roadhouse has a 12-month low of $153.82 and a 12-month high of $216.30. The firm's fifty day moving average is $173.05 and its 200 day moving average is $179.11. The company has a quick ratio of 0.39, a current ratio of 0.46 and a debt-to-equity ratio of 0.03.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The restaurant operator reported $1.36 EPS for the quarter, missing analysts' consensus estimates of $1.46 by ($0.10). The company had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.58 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. The company's revenue for the quarter was up 9.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.25 earnings per share. As a group, sell-side analysts predict that Texas Roadhouse will post 6.48 EPS for the current fiscal year.

Insider Transactions at Texas Roadhouse

In related news, insider Lloyd Marshall sold 500 shares of the firm's stock in a transaction dated Wednesday, August 26th. The shares were sold at an average price of $204.65, for a total value of $102,325.00. Following the transaction, 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Gerald L. Morgan sold 15,000 shares of Texas Roadhouse stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $202.17, for a total value of $3,032,550.00. Following the transaction, the chief executive officer owned 80,970 shares of the company's stock, valued at $16,369,704.90. This trade represents a 15.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 19,970 shares of company stock valued at $4,061,808. Corporate insiders own 0.50% of the company's stock.

Institutional Trading of Texas Roadhouse

Institutional investors and hedge funds have recently modified their holdings of the stock. Eurizon Capital SGR S.p.A. boosted its position in shares of Texas Roadhouse by 38.1% during the third quarter. Eurizon Capital SGR S.p.A. now owns 975 shares of the restaurant operator's stock valued at $154,000 after buying an additional 269 shares during the last quarter. R Squared Ltd bought a new stake in Texas Roadhouse during the third quarter worth $414,000. Machina Capital S.A.S. purchased a new stake in Texas Roadhouse in the 3rd quarter valued at $643,000. Bahl & Gaynor LLC raised its position in Texas Roadhouse by 2.7% in the 3rd quarter. Bahl & Gaynor LLC now owns 346,038 shares of the restaurant operator's stock valued at $54,100,000 after buying an additional 9,095 shares during the last quarter. Finally, Lido Advisors LLC raised its position in Texas Roadhouse by 0.8% in the 3rd quarter. Lido Advisors LLC now owns 7,528 shares of the restaurant operator's stock valued at $1,177,000 after buying an additional 59 shares during the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

Key Texas Roadhouse News

Here are the key news stories impacting Texas Roadhouse this week:

• Positive Sentiment: Comparable-store sales increased 4.3%, and revenue rose 9.5% year over year to $1.57 billion. The sales growth signals continued demand, although revenue was slightly below the $1.58 billion consensus. Texas Roadhouse: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: The company declared a quarterly dividend of $0.75 per share, offering a direct return to shareholders. Third-quarter results and dividend announcement
• Neutral Sentiment: Management characterized results as strong despite softer traffic. That may temper the sales-growth signal, as traffic trends remain an area for investors to monitor. Results despite softer traffic
• Negative Sentiment: Quarterly EPS was $1.36, below analysts’ estimates of roughly $1.46–$1.49. Although earnings were up from $1.25 a year earlier, the miss could weigh on the stock. Q3 earnings and revenue estimates

Texas Roadhouse Company Profile

Texas Roadhouse, Inc NASDAQ: TXRH operates full-service casual dining restaurants under the Texas Roadhouse, Bubba's 33 and Jaggers brands. Its restaurants serve made-from-scratch meals centered on hand-cut steaks, ribs, chicken, seafood, burgers and other American-style dishes, along with freshly baked rolls and a selection of beverages.

Founded in 1993, Texas Roadhouse began with its first restaurant in Clarksville, Indiana. The company's restaurant network includes company-owned and franchised locations across the United States, as well as international locations.

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