Texas Roadhouse (NASDAQ:TXRH) Upgraded at Stephens

Key Points

• Stephens upgraded Texas Roadhouse from “equal weight” to “overweight” and set a $205 price target, implying roughly 23% upside from the reported $166.64 share price. The stock’s consensus rating is “Moderate Buy,” with an average target of $208.86.
• Texas Roadhouse reported quarterly EPS of $1.85, beating estimates by $0.02, while revenue rose 11.1% year over year to $1.68 billion and exceeded expectations.
• Insiders have sold 19,970 shares worth approximately $4.06 million over the past 90 days, including sales by the CEO and a director; institutional investors own 94.82% of the company.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) was upgraded by investment analysts at Stephens from an "equal weight" rating to an "overweight" rating in a report issued on Thursday, Marketbeat Ratings reports. The firm presently has a $205.00 target price on the restaurant operator's stock. Stephens' target price would suggest a potential upside of 23.02% from the stock's current price.

TXRH has been the topic of a number of other research reports. Wells Fargo & Company raised their target price on shares of Texas Roadhouse from $220.00 to $230.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. Vertical Research upgraded Texas Roadhouse to a "buy" rating in a research note on Wednesday. Barclays downgraded Texas Roadhouse from an "equal weight" rating to a "cautious" rating in a research report on Wednesday. BTIG Research increased their target price on Texas Roadhouse from $200.00 to $220.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Finally, Jefferies Financial Group upgraded Texas Roadhouse from a "hold" rating to a "buy" rating and increased their target price for the company from $186.00 to $190.00 in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $208.86.

Texas Roadhouse Trading Up 2.8%

NASDAQ TXRH opened at $166.64 on Thursday. Texas Roadhouse has a one year low of $153.82 and a one year high of $216.30. The company's 50 day moving average price is $182.30 and its 200 day moving average price is $179.34. 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 firm has a market capitalization of $10.94 billion, a price-to-earnings ratio of 25.95, a PEG ratio of 1.61 and a beta of 0.80.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced 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. Texas Roadhouse had a net margin of 6.63% and a return on equity of 27.20%. The firm had revenue of $1.68 billion for the quarter, compared to analysts' expectations of $1.67 billion. During the same period in the previous year, the company posted $1.86 earnings per share. Texas Roadhouse's revenue was up 11.1% compared to the same quarter last year. On average, sell-side analysts predict that Texas Roadhouse will post 6.61 EPS for the current year.

Insiders Place Their Bets

In other Texas Roadhouse news, CEO Gerald L. Morgan sold 15,000 shares of the stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $202.17, for a total transaction 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. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Hugh J. Carroll sold 650 shares of Texas Roadhouse stock in a transaction that occurred on Tuesday, August 25th. The stock was sold at an average price of $203.99, for a total value of $132,593.50. Following the completion of the transaction, the director owned 2,883 shares of the company's stock, valued at approximately $588,103.17. The trade was a 18.40% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 19,970 shares of company stock valued at $4,061,808. 0.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Texas Roadhouse

Several large investors have recently added to or reduced their stakes in TXRH. Fort Washington Investment Advisors Inc. OH boosted its stake in Texas Roadhouse by 4.6% during the 3rd quarter. Fort Washington Investment Advisors Inc. OH now owns 142,258 shares of the restaurant operator's stock valued at $22,241,000 after purchasing an additional 6,311 shares in the last quarter. JGP Wealth Management LLC bought a new stake in shares of Texas Roadhouse in the 3rd quarter worth $353,000. Riversedge Advisors LLC raised its stake in shares of Texas Roadhouse by 4.1% in the 3rd quarter. Riversedge Advisors LLC now owns 2,125 shares of the restaurant operator's stock worth $332,000 after buying an additional 84 shares in the last quarter. Farther Finance Advisors LLC lifted its holdings in shares of Texas Roadhouse by 24.3% in the third quarter. Farther Finance Advisors LLC now owns 1,772 shares of the restaurant operator's stock valued at $277,000 after buying an additional 346 shares during the period. Finally, Versant Capital Management Inc boosted its stake in Texas Roadhouse by 155.1% during the third quarter. Versant Capital Management Inc now owns 528 shares of the restaurant operator's stock valued at $83,000 after buying an additional 321 shares in the last quarter. 94.82% of the stock is currently owned by institutional investors.

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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