BMO Capital Markets Forecasts Strong Price Appreciation for Brinker International (NYSE:EAT) Stock

Key Points

• BMO Capital Markets has increased its price target for Brinker International from $150.00 to $170.00, indicating a potential upside of 7.71% from the stock's previous close.
• Brinker International's recent earnings report highlighted a 21.0% year-over-year revenue increase, with earnings per share of $2.49, surpassing analysts' estimates of $2.47.
• Currently, Brinker International holds an average rating of "Hold" with a consensus target price of $159.29, based on evaluations from thirteen research analysts.

Brinker International (NYSE:EAT - Get Free Report) had its price objective hoisted by equities research analysts at BMO Capital Markets from $150.00 to $170.00 in a research report issued on Thursday,Benzinga reports. The firm presently has a "market perform" rating on the restaurant operator's stock. BMO Capital Markets' price objective suggests a potential upside of 9.17% from the stock's current price.

Other equities analysts have also recently issued reports about the stock. Wells Fargo & Company upped their price target on shares of Brinker International from $150.00 to $165.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 17th. JPMorgan Chase & Co. increased their price objective on shares of Brinker International from $160.00 to $180.00 and gave the company a "neutral" rating in a research note on Wednesday, June 25th. Stifel Nicolaus increased their price objective on shares of Brinker International from $200.00 to $215.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Bank of America increased their price objective on shares of Brinker International from $185.00 to $186.00 and gave the company a "neutral" rating in a research note on Friday, July 18th. Finally, Barclays increased their price objective on shares of Brinker International from $166.00 to $170.00 and gave the company an "equal weight" rating in a research note on Thursday. Thirteen investment analysts have rated the stock with a hold rating and five have issued a buy rating to the company's stock. According to MarketBeat.com, Brinker International presently has an average rating of "Hold" and an average target price of $171.41.

Brinker International Stock Performance

Brinker International stock traded down $2.44 during trading hours on Thursday, reaching $155.72. 1,306,466 shares of the stock were exchanged, compared to its average volume of 1,498,940. The stock has a market cap of $6.92 billion, a P/E ratio of 18.74, a P/E/G ratio of 1.00 and a beta of 1.68. The company has a debt-to-equity ratio of 1.15, a quick ratio of 0.23 and a current ratio of 0.31. Brinker International has a 52-week low of $65.38 and a 52-week high of $192.21. The firm's 50 day moving average is $167.98 and its 200 day moving average is $158.10.

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

Insider Activity at Brinker International

In related news, Director Joseph Michael Depinto sold 10,000 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $170.36, for a total value of $1,703,600.00. Following the completion of the sale, the director directly owned 99,297 shares in the company, valued at approximately $16,916,236.92. The trade was a 9.15% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harriet Edelman sold 8,325 shares of the business's 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 of the company's stock, valued at approximately $4,538,085. This trade represents a 22.36% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 1.72% of the company's stock.

Institutional Investors Weigh In On Brinker International

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Sequoia Financial Advisors LLC acquired a new position in shares of Brinker International during the first quarter worth approximately $206,000. Range Financial Group LLC acquired a new position in shares of Brinker International during the first quarter worth approximately $1,036,000. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Brinker International during the first quarter worth approximately $492,000. Robeco Institutional Asset Management B.V. acquired a new position in shares of Brinker International during the first quarter worth approximately $565,000. Finally, Two Sigma Advisers LP acquired a new position in shares of Brinker International during the fourth quarter worth approximately $1,336,000.

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.