Texas Roadhouse (NASDAQ:TXRH) Upgraded to Strong-Buy at Benchmark

Key Points

• Benchmark upgraded Texas Roadhouse to “strong buy” from “hold.” Across analysts, the stock has a consensus “Moderate Buy” rating and an average price target of $209.76.
• Texas Roadhouse exceeded quarterly expectations, reporting $1.85 in EPS versus $1.83 expected and $1.68 billion in revenue versus $1.67 billion expected; revenue increased 11.1% year over year.
• The shares opened at $163.57, below their 50-day and 200-day moving averages of $187.82 and $179.61, respectively. Institutional investors own a substantial 94.82% of the company, while insiders sold nearly $4.1 million in shares over the past three months.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) was upgraded by analysts at Benchmark from a "hold" rating to a "strong-buy" rating in a report released on Tuesday, Zacks reports.

TXRH has been the subject of a number of other reports. Morgan Stanley restated an "overweight" rating and set a $212.00 price target on shares of Texas Roadhouse in a research note on Friday, August 7th. Piper Sandler boosted their target price on shares of Texas Roadhouse from $192.00 to $208.00 and gave the company a "neutral" rating in a research report on Monday, August 10th. Stephens increased their price target on shares of Texas Roadhouse from $180.00 to $205.00 and gave the stock an "equal weight" rating in a research report on Friday, August 7th. Weiss Ratings upgraded shares of Texas Roadhouse from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, September 9th. Finally, TD Cowen boosted their price objective on shares of Texas Roadhouse from $205.00 to $230.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eleven have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $209.76.

Texas Roadhouse Price Performance

NASDAQ TXRH opened at $163.57 on Tuesday. The business's fifty day moving average price is $187.82 and its 200-day moving average price is $179.61. The stock has a market capitalization of $10.74 billion, a price-to-earnings ratio of 26.17, a PEG ratio of 1.57 and a beta of 0.80. 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 1-year low of $153.82 and a 1-year high of $216.30.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The restaurant operator reported $1.85 EPS for the quarter, topping the consensus estimate of $1.83 by $0.02. The company had revenue of $1.68 billion during the quarter, compared to analyst estimates of $1.67 billion. Texas Roadhouse had a return on equity of 27.20% and a net margin of 6.63%.Texas Roadhouse's revenue 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 predict that Texas Roadhouse will post 6.61 earnings per share for the current year.

Insider Buying and Selling

In other Texas Roadhouse news, insider Lloyd Marshall sold 500 shares of the stock in a transaction on Wednesday, August 26th. The stock was sold at an average price of $204.65, for a total value of $102,325.00. Following the completion of the sale, the insider owned 9,826 shares in the company, valued at approximately $2,010,890.90. This represents a 4.84% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Gregory Moore sold 3,000 shares of the firm's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $208.32, for a total value of $624,960.00. Following the sale, the director directly owned 26,900 shares in the company, valued at approximately $5,603,808. This represents a 10.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 19,970 shares of company stock worth $4,061,808 in the last three months. Corporate insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. BlackRock Inc. purchased a new stake in shares of Texas Roadhouse in the second quarter worth approximately $1,273,173,000. Wellington Management Group LLP grew its position in Texas Roadhouse by 8.4% in the 2nd quarter. Wellington Management Group LLP now owns 1,541,791 shares of the restaurant operator's stock valued at $297,920,000 after acquiring an additional 119,803 shares during the last quarter. Dimensional Fund Advisors LP grew its position in Texas Roadhouse by 4.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 864,006 shares of the restaurant operator's stock valued at $142,670,000 after acquiring an additional 34,385 shares during the last quarter. Bessemer Group Inc. lifted its position in shares of Texas Roadhouse by 38.1% during the first quarter. Bessemer Group Inc. now owns 732,411 shares of the restaurant operator's stock worth $120,951,000 after purchasing an additional 202,241 shares during the last quarter. Finally, Bank of America Corp DE purchased a new stake in shares of Texas Roadhouse during the second quarter valued at $113,993,000. 94.82% of the stock is owned by hedge funds and other institutional investors.

About Texas Roadhouse

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.