Brinker International (NYSE:EAT) Shares Down 5% Following Analyst Downgrade

Key Points

• Brinker International's shares dropped by 5% after Morgan Stanley reduced its price target from $161.00 to $160.00, maintaining an equal weight rating.
• The stock experienced a significant decline in trading volume, with only 258,353 shares changing hands compared to the average session volume of 1,440,906 shares.
• Despite the downgrade, several analysts still rate Brinker International with a consensus of moderate buy, and an average target price of $167.61.

Shares of Brinker International, Inc. (NYSE:EAT - Get Free Report) fell 5% on Thursday after Morgan Stanley lowered their price target on the stock from $161.00 to $160.00. Morgan Stanley currently has an equal weight rating on the stock. Brinker International traded as low as $124.00 and last traded at $125.44. 258,353 shares changed hands during trading, a decline of 82% from the average session volume of 1,440,906 shares. The stock had previously closed at $132.05.

EAT has been the topic of a number of other research reports. UBS Group upped their target price on shares of Brinker International from $155.00 to $165.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Barclays reduced their price objective on shares of Brinker International from $170.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday. Jefferies Financial Group lowered their target price on Brinker International from $175.00 to $144.00 and set a "hold" rating on the stock in a research note on Monday, October 13th. The Goldman Sachs Group lowered their price objective on shares of Brinker International from $207.00 to $180.00 and set a "buy" rating on the stock in a research report on Tuesday, September 30th. Finally, Weiss Ratings reissued a "buy (b)" rating on shares of Brinker International in a research report on Wednesday, October 8th. Nine research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $167.61.

Insider Transactions at Brinker International

In other news, Director Harriet Edelman sold 8,325 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $157.00, for a total transaction of $1,307,025.00. Following the completion of the transaction, the director owned 28,905 shares of the company's stock, valued at approximately $4,538,085. The trade was a 22.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Kevin Hochman sold 44,000 shares of the firm's stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $157.82, for a total transaction of $6,944,080.00. Following the completion of the sale, the chief executive officer directly owned 212,867 shares in the company, valued at $33,594,669.94. This represents a 17.13% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 68,325 shares of company stock valued at $10,754,785. 1.43% of the stock is currently owned by company insiders.

Institutional Trading of Brinker International

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Concord Wealth Partners purchased a new stake in Brinker International during the 2nd quarter valued at about $25,000. Allworth Financial LP increased its stake in shares of Brinker International by 105.8% in the second quarter. Allworth Financial LP now owns 142 shares of the restaurant operator's stock worth $26,000 after buying an additional 73 shares during the period. AdvisorNet Financial Inc bought a new stake in Brinker International in the 2nd quarter worth $33,000. Twin Peaks Wealth Advisors LLC bought a new stake in shares of Brinker International in the second quarter worth about $34,000. Finally, Farther Finance Advisors LLC raised its position in Brinker International by 575.0% during the 1st quarter. Farther Finance Advisors LLC now owns 189 shares of the restaurant operator's stock valued at $29,000 after purchasing an additional 161 shares during the last quarter.

Brinker International Trading Down 5.0%

The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.25 and a current ratio of 0.31. The stock has a market capitalization of $5.58 billion, a P/E ratio of 15.11, a price-to-earnings-growth ratio of 0.88 and a beta of 1.38. The stock has a 50-day moving average price of $142.60 and a two-hundred day moving average price of $153.68.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings results 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 company had revenue of $1.46 billion during the quarter, compared to analyst estimates 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 last year, the business earned $1.61 EPS. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. On average, research analysts forecast that Brinker International, Inc. will post 8.3 EPS for the current fiscal year.

About Brinker International

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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