Brinker International (NYSE:EAT) Shares Gap Up Following Analyst Upgrade

Key Points

• Brinker International shares gapped up after an analyst upgrade from Evercore ISI, moving from a previous close of $159.06 to an opening of $167.48, with a new price target set at $210.00.
• In recent trading activity, insider sales included Director Harriet Edelman selling 8,325 shares and CEO Kevin Hochman selling 44,000 shares, reflecting significant decreases in their positions.
• Analysts maintain a mixed outlook on Brinker, with five analysts rating it as a Buy and the average target price across firms set at $172.59.

Brinker International, Inc. (NYSE:EAT - Get Free Report) gapped up prior to trading on Thursday after Evercore ISI upgraded the stock from an in-line rating to an outperform rating. The stock had previously closed at $159.06, but opened at $167.48. Evercore ISI now has a $210.00 price target on the stock, up from their previous price target of $190.00. Brinker International shares last traded at $160.64, with a volume of 362,095 shares traded.

A number of other equities analysts have also commented on the company. JPMorgan Chase & Co. increased their price target on Brinker International from $160.00 to $180.00 and gave the company a "neutral" rating in a research note on Wednesday, June 25th. Bank of America increased their price target on Brinker International from $186.00 to $190.00 and gave the company a "neutral" rating in a research note on Thursday, August 14th. Morgan Stanley increased their price target on Brinker International from $149.00 to $161.00 and gave the company an "equal weight" rating in a research note on Thursday, August 14th. Wall Street Zen lowered Brinker International from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 16th. Finally, BMO Capital Markets increased their price target on Brinker International from $150.00 to $170.00 and gave the company a "market perform" rating in a research note on Thursday, August 14th. Five equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $172.59.

Insider Transactions at Brinker International

In other news, CEO Kevin Hochman sold 44,000 shares of the stock in a transaction that occurred on Wednesday, August 27th. The stock was sold at an average price of $157.82, for a total value of $6,944,080.00. Following the sale, the chief executive officer directly owned 212,867 shares in the company, valued at approximately $33,594,669.94. This represents a 17.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Harriet Edelman sold 8,325 shares of the stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $157.00, for a total value of $1,307,025.00. Following the completion of the sale, the director owned 28,905 shares in the company, valued at approximately $4,538,085. The trade was a 22.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 1.72% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. Westfield Capital Management Co. LP increased its holdings in Brinker International by 24.2% during the 2nd quarter. Westfield Capital Management Co. LP now owns 1,236,583 shares of the restaurant operator's stock worth $222,993,000 after purchasing an additional 240,870 shares during the period. Arrowstreet Capital Limited Partnership increased its holdings in Brinker International by 86.4% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,091,692 shares of the restaurant operator's stock worth $196,865,000 after purchasing an additional 506,087 shares during the period. Geode Capital Management LLC increased its holdings in Brinker International by 1.3% during the 2nd quarter. Geode Capital Management LLC now owns 1,071,523 shares of the restaurant operator's stock worth $193,619,000 after purchasing an additional 14,033 shares during the period. Dimensional Fund Advisors LP increased its holdings in Brinker International by 5.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 967,550 shares of the restaurant operator's stock worth $144,201,000 after purchasing an additional 46,896 shares during the period. Finally, Balyasny Asset Management L.P. increased its holdings in Brinker International by 107.1% during the 2nd quarter. Balyasny Asset Management L.P. now owns 639,362 shares of the restaurant operator's stock worth $115,296,000 after purchasing an additional 330,611 shares during the period.

Brinker International Price Performance

The firm has a fifty day simple moving average of $161.48 and a 200 day simple moving average of $156.53. The company has a market capitalization of $7.04 billion, a PE ratio of 19.04, a P/E/G ratio of 1.01 and a beta of 1.43. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.25 and a current ratio of 0.31.

Brinker International (NYSE:EAT - Get Free Report) last released its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $2.49 EPS for the quarter, topping the consensus estimate of $2.47 by $0.02. The company had revenue of $1.46 billion for the quarter, compared to the consensus estimate of $1.42 billion. Brinker International had a return on equity of 211.86% and a net margin of 7.12%.Brinker International's quarterly revenue was up 21.0% on a year-over-year basis. During the same period last year, the business posted $1.61 EPS. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. Equities analysts anticipate that Brinker International, Inc. will post 8.3 EPS for the current year.

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.