Texas Roadhouse (NASDAQ:TXRH) Stock Price Target Lowered at TD Cowen

Key Points

• TD Cowen lowered Texas Roadhouse’s price target from $230 to $195 while maintaining a “buy” rating, implying 14.06% potential upside from the current price.
• Analyst sentiment remains positive, with the stock carrying a “Moderate Buy” consensus rating and an average target price of $207.68; several firms recently raised their ratings or price targets.
• Texas Roadhouse exceeded quarterly expectations, reporting $1.85 in adjusted earnings per share and $1.68 billion in revenue, with sales up 11.1% year over year. Insiders have sold nearly 20,000 shares worth about $4.06 million over the past 90 days.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price target dropped by investment analysts at TD Cowen from $230.00 to $195.00 in a report released on Friday, Benzinga reports. The firm currently has a "buy" rating on the restaurant operator's stock. TD Cowen's price objective points to a potential upside of 14.06% from the company's current price.

A number of other research analysts have also commented on TXRH. Stephens raised Texas Roadhouse from an "equal weight" rating to an "overweight" rating and set a $205.00 price target on the stock in a report on Thursday. Morgan Stanley upped their price objective on shares of Texas Roadhouse from $212.00 to $221.00 and gave the stock an "overweight" rating in a report on Thursday. Mizuho upped their price objective on shares of Texas Roadhouse from $190.00 to $230.00 and gave the stock an "outperform" rating in a report on Friday, July 31st. Robert W. Baird upgraded shares of Texas Roadhouse to a "strong-buy" rating in a research report on Monday, August 24th. Finally, Piper Sandler raised their target price on shares of Texas Roadhouse from $192.00 to $208.00 and gave the company a "neutral" rating in a research note on Monday, August 10th. Two research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Texas Roadhouse currently has a consensus rating of "Moderate Buy" and an average target price of $207.68.

Texas Roadhouse Trading Up 2.6%

Texas Roadhouse stock opened at $170.97 on Friday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.39 and a current ratio of 0.46. The company has a market cap of $11.22 billion, a P/E ratio of 27.36, a PEG ratio of 1.66 and a beta of 0.80. Texas Roadhouse has a 1 year low of $153.82 and a 1 year high of $216.30. The firm's 50-day moving average is $181.56 and its 200-day moving average is $179.42.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results 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 analysts' expectations of $1.67 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%. The business's revenue for the quarter was up 11.1% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.86 earnings per share. On average, equities analysts expect that Texas Roadhouse will post 6.59 earnings per share for the current year.

Insider Activity

In other news, insider Lloyd Marshall sold 500 shares of the company's stock in a transaction on 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 sale, the insider directly owned 9,826 shares of the company's stock, valued at $2,010,890.90. This represents a 4.84% 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, Director Gregory N. Moore sold 3,000 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $208.32, for a total transaction of $624,960.00. Following the sale, the director directly owned 26,900 shares of the company's stock, valued at $5,603,808. This represents a 10.03% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 19,970 shares of company stock valued at $4,061,808 in the last ninety days. 0.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Texas Roadhouse

Several hedge funds have recently made changes to their positions in the company. Basecamp Wealth Advisors LLC boosted its stake in Texas Roadhouse by 5,033.3% in the 1st quarter. Basecamp Wealth Advisors LLC now owns 154 shares of the restaurant operator's stock worth $25,000 after purchasing an additional 151 shares during the period. Silvant Capital Management LLC acquired a new stake in Texas Roadhouse during the 2nd quarter valued at $32,000. Coppell Advisory Solutions LLC acquired a new stake in Texas Roadhouse during the 2nd quarter valued at $38,000. Western Wealth Management LLC purchased a new stake in shares of Texas Roadhouse in the first quarter valued at $47,000. Finally, Bank & Trust Co lifted its holdings in shares of Texas Roadhouse by 68.1% in the second quarter. Bank & Trust Co now owns 306 shares of the restaurant operator's stock valued at $59,000 after purchasing an additional 124 shares in the last quarter. Hedge funds and other institutional investors own 94.82% of the company's stock.

Texas Roadhouse Company Profile

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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