Texas Roadhouse (NASDAQ:TXRH) Stock Gets Price Target Bump from TD Cowen

Key Points

• TD Cowen raised its price target on Texas Roadhouse from $195 to $213 and maintained a Buy rating, implying 11.06% upside from the prior close.
• Analyst sentiment is broadly positive: MarketBeat reports a consensus “Moderate Buy” rating and an average price target of $208.43.
• Latest quarterly results showed revenue up 9.5% year over year to $1.57 billion, but revenue came in slightly below consensus and EPS of $1.36 missed estimates of $1.46.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price target boosted by stock analysts at TD Cowen from $195.00 to $213.00 in a report issued on Friday, Benzinga reports. The firm presently has a "buy" rating on the restaurant operator's stock. TD Cowen's target price indicates a potential upside of 11.06% from the stock's previous close.

Several other research analysts have also commented on the stock. Citigroup decreased their price target on shares of Texas Roadhouse from $209.00 to $189.00 and set a "neutral" rating for the company in a report on Friday, October 23rd. Wells Fargo & Company increased their price objective on shares of Texas Roadhouse from $220.00 to $230.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Benchmark raised shares of Texas Roadhouse from a "hold" rating to a "strong-buy" rating in a report on Tuesday, October 6th. KeyCorp restated a "sector weight" rating on shares of Texas Roadhouse in a research note on Friday, October 2nd. Finally, Evercore set a $220.00 target price on Texas Roadhouse in a report on Friday, September 25th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $208.43.

Texas Roadhouse Stock Performance

Texas Roadhouse stock opened at $191.79 on Friday. The company has a market cap of $12.59 billion, a PE ratio of 31.43, a P/E/G ratio of 2.13 and a beta of 0.81. The company has a fifty day moving average price of $173.05 and a two-hundred day moving average price of $179.11. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.46 and a quick ratio of 0.39. Texas Roadhouse has a 12 month low of $153.82 and a 12 month high of $216.30.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its earnings results on Thursday, November 5th. The restaurant operator reported $1.36 earnings per share for the quarter, missing the consensus estimate of $1.46 by ($0.10). The business had revenue of $1.57 billion for the quarter, compared to the consensus estimate of $1.58 billion. Texas Roadhouse had a net margin of 6.63% and a return on equity of 27.20%. The firm's revenue for the quarter was up 9.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.25 EPS. Research analysts expect that Texas Roadhouse will post 6.48 earnings per share for the current year.

Insider Transactions at Texas Roadhouse

In other Texas Roadhouse news, CEO Gerald Morgan sold 15,000 shares of the business's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $202.17, for a total transaction of $3,032,550.00. Following the completion of the transaction, the chief executive officer directly owned 80,970 shares of the company's stock, valued at $16,369,704.90. The trade was a 15.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Lloyd Marshall sold 500 shares of the company's stock in a transaction dated Wednesday, August 26th. The stock was 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 of the company's stock, valued at approximately $2,010,890.90. This trade represents a 4.84% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 19,970 shares of company stock worth $4,061,808 over the last 90 days. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Texas Roadhouse

Hedge funds and other institutional investors have recently made changes to their positions in the business. Lido Advisors LLC lifted its stake in Texas Roadhouse by 0.8% during the third quarter. Lido Advisors LLC now owns 7,528 shares of the restaurant operator's stock valued at $1,177,000 after purchasing an additional 59 shares during the last quarter. Signaturefd LLC boosted its holdings in Texas Roadhouse by 3.3% during the third quarter. Signaturefd LLC now owns 1,905 shares of the restaurant operator's stock worth $298,000 after buying an additional 61 shares in the last quarter. Allspring Global Investments Holdings LLC grew its position in Texas Roadhouse by 2.6% in the third quarter. Allspring Global Investments Holdings LLC now owns 2,387 shares of the restaurant operator's stock worth $374,000 after buying an additional 61 shares during the last quarter. Glenmede Trust Co. NA grew its position in Texas Roadhouse by 3.9% in the first quarter. Glenmede Trust Co. NA now owns 1,815 shares of the restaurant operator's stock worth $300,000 after buying an additional 68 shares during the last quarter. Finally, Summitry LLC grew its position in Texas Roadhouse by 1.9% in the first quarter. Summitry LLC now owns 4,140 shares of the restaurant operator's stock worth $684,000 after buying an additional 76 shares during the last quarter. 94.82% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Texas Roadhouse

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

About Texas Roadhouse

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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