Brinker International (NYSE:EAT) Cut to Buy at Wall Street Zen

Key Points

• Brinker International was downgraded from a "strong-buy" to a "buy" rating by Wall Street Zen in a recent research report.
• Several financial firms, including Morgan Stanley and JPMorgan Chase, have raised their price targets for Brinker International, reflecting positive sentiment with a consensus price target of $171.41.
• The company reported a quarterly earnings per share (EPS) of $2.49, exceeding expectations and showcasing a 21.0% increase in revenue year-over-year.

Brinker International (NYSE:EAT - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

EAT has been the subject of a number of other reports. Morgan Stanley increased their price target on shares of Brinker International from $149.00 to $161.00 and gave the company an "equal weight" rating in a report on Thursday. JPMorgan Chase & Co. increased their price target on shares of Brinker International from $160.00 to $180.00 and gave the company a "neutral" rating in a report on Wednesday, June 25th. Barclays increased their price target on shares of Brinker International from $166.00 to $170.00 and gave the company an "equal weight" rating in a report on Thursday. UBS Group increased their price target on shares of Brinker International from $155.00 to $165.00 and gave the company a "neutral" rating in a report on Thursday. Finally, Evercore ISI increased their price target on shares of Brinker International from $180.00 to $190.00 and gave the company an "in-line" rating in a report on Thursday. Thirteen investment analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $171.41.

Brinker International Price Performance

NYSE EAT opened at $158.04 on Friday. The company has a current ratio of 0.31, a quick ratio of 0.23 and a debt-to-equity ratio of 1.15. The company has a fifty day simple moving average of $167.98 and a 200 day simple moving average of $158.41. The company has a market cap of $7.02 billion, a P/E ratio of 19.02, a P/E/G ratio of 0.36 and a beta of 1.68. Brinker International has a 1 year low of $65.26 and a 1 year high of $192.21.

Brinker International (NYSE:EAT - Get Free Report) last posted its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $2.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.47 by $0.02. The business had revenue of $1.46 billion during the quarter, compared to the consensus estimate of $1.42 billion. Brinker International had a net margin of 7.12% and a return on equity of 211.86%. Brinker International's quarterly revenue was up 21.0% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.61 EPS. On average, sell-side analysts predict that Brinker International will post 8.3 EPS for the current year.

Insiders Place Their Bets

In related news, Director Harriet Edelman sold 8,325 shares of the stock in a transaction dated Thursday, August 14th. The shares were sold at an average price of $157.00, for a total transaction of $1,307,025.00. Following the completion of the sale, the director owned 28,905 shares in the company, valued at $4,538,085. This trade represents a 22.36% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Joseph Michael Depinto sold 10,000 shares of the stock in a transaction dated Thursday, June 5th. The stock was sold at an average price of $170.36, for a total transaction of $1,703,600.00. Following the sale, the director owned 99,297 shares of the company's stock, valued at $16,916,236.92. This trade represents a 9.15% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 1.72% of the company's stock.

Institutional Investors Weigh In On Brinker International

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Sequoia Financial Advisors LLC acquired a new stake in Brinker International in the 1st quarter valued at about $206,000. Range Financial Group LLC acquired a new stake in Brinker International in the 1st quarter valued at about $1,036,000. Sumitomo Mitsui Trust Group Inc. acquired a new stake in Brinker International in the 1st quarter valued at about $492,000. Robeco Institutional Asset Management B.V. acquired a new stake in Brinker International in the 1st quarter valued at about $565,000. Finally, Two Sigma Advisers LP acquired a new stake in Brinker International in the 4th quarter valued at about $1,336,000.

Brinker International Company Profile

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.

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