Texas Roadhouse (NASDAQ:TXRH) Stock Price Target Lowered at Wells Fargo & Company

Key Points

• Wells Fargo cut its Texas Roadhouse price target from $230 to $220 but maintained an Overweight rating; the new target implies 14.71% upside from the prior close.
• Analyst sentiment remains broadly positive: the stock has a Moderate Buy consensus rating and an average price target of $208.
• Texas Roadhouse reported quarterly EPS of $1.36, below the $1.46 consensus, while revenue rose 9.5% year over year to $1.57 billion, slightly under estimates.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price objective reduced by equities research analysts at Wells Fargo & Company from $230.00 to $220.00 in a report released on Friday, Benzinga reports. The brokerage currently has an "overweight" rating on the restaurant operator's stock. Wells Fargo & Company's price objective indicates a potential upside of 14.71% from the company's previous close.

Several other brokerages have also recently issued reports on TXRH. 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 price objective on the stock. Evercore set a $220.00 target price on shares of Texas Roadhouse in a research note on Friday, September 25th. Piper Sandler lifted their price target on shares of Texas Roadhouse from $192.00 to $208.00 and gave the stock a "neutral" rating in a research report on Monday, August 10th. 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, October 15th. Finally, JPMorgan Chase & Co. cut their price objective on Texas Roadhouse from $202.00 to $200.00 and set a "neutral" rating for the company in a research report on Tuesday, September 29th. Two analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $208.00.

Texas Roadhouse Price Performance

NASDAQ:TXRH opened at $191.79 on Friday. The business's 50-day moving average price is $173.05 and its 200 day moving average price is $179.11. The firm has a market cap of $12.59 billion, a P/E ratio of 30.69, a PEG ratio of 2.13 and a beta of 0.81. Texas Roadhouse has a 52-week low of $153.82 and a 52-week high of $216.30. 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 issued its quarterly earnings results on Thursday, November 5th. The restaurant operator reported $1.36 earnings per share for the quarter, missing analysts' consensus estimates of $1.46 by ($0.10). Texas Roadhouse had a net margin of 6.63% and a return on equity of 27.20%. The business had revenue of $1.57 billion during the quarter, compared to analyst estimates of $1.58 billion. During the same period in the previous year, the company posted $1.25 earnings per share. Texas Roadhouse's revenue was up 9.5% compared to the same quarter last year. As a group, sell-side analysts predict that Texas Roadhouse will post 6.48 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Texas Roadhouse news, Director Donna Epps sold 820 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $206.56, for a total transaction of $169,379.20. Following the sale, the director directly owned 4,042 shares of the company's stock, valued at $834,915.52. The trade was a 16.87% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Hugh Carroll sold 650 shares of the business's stock in a transaction on Tuesday, August 25th. The shares were sold at an average price of $203.99, for a total transaction of $132,593.50. Following the sale, the director directly owned 2,883 shares in the company, valued at approximately $588,103.17. This trade represents a 18.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 19,970 shares of company stock valued at $4,061,808 over the last 90 days. 0.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the business. Ranger Investment Management L.P. purchased a new position in Texas Roadhouse during the 2nd quarter valued at about $21,560,000. The Manufacturers Life Insurance Company acquired a new position in shares of Texas Roadhouse in the 2nd quarter valued at about $9,473,000. J. Goldman & Co LP acquired a new position in shares of Texas Roadhouse in the 2nd quarter valued at about $10,434,000. Bamco Inc. NY acquired a new position in shares of Texas Roadhouse in the 2nd quarter valued at about $60,148,000. Finally, Callan Family Office LLC purchased a new stake in shares of Texas Roadhouse in the second quarter worth approximately $1,449,000. 94.82% of the stock is owned by institutional investors and hedge funds.

Texas Roadhouse News Summary

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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