Brinker International Sees Unusually High Options Volume (NYSE:EAT)

Key Points

• Brinker International experienced a significant increase in options volume, with 5,513 put options traded, marking a 137% rise from the usual 2,331 put options.
• The company's stock fell 3.9% on Thursday, trading at $126.89, and is currently below its fifty and two-hundred day moving averages.
• Analysts have recently adjusted their target prices for Brinker International, with BMO Capital Markets raising it from $150 to $170, while Barclays cut theirs from $170 to $145.

Brinker International, Inc. (NYSE:EAT - Get Free Report) saw some unusual options trading on Thursday. Traders purchased 5,513 put options on the company. This represents an increase of approximately 137% compared to the typical volume of 2,331 put options.

Brinker International Stock Down 3.9%

Shares of EAT traded down $5.16 during trading hours on Thursday, hitting $126.89. The company had a trading volume of 716,188 shares, compared to its average volume of 1,443,712. The company's fifty day moving average price is $142.60 and its two-hundred day moving average price is $153.68. Brinker International has a one year low of $92.50 and a one year high of $192.21. The company has a market capitalization of $5.64 billion, a PE ratio of 15.33, a price-to-earnings-growth ratio of 0.88 and a beta of 1.38. The company has a current ratio of 0.31, a quick ratio of 0.25 and a debt-to-equity ratio of 1.15.

Brinker International (NYSE:EAT - Get Free Report) last announced its earnings results on Wednesday, August 13th. The restaurant operator reported $2.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.47 by $0.02. Brinker International had a return on equity of 211.86% and a net margin of 7.12%.The company had revenue of $1.46 billion for the quarter, compared to analyst estimates of $1.42 billion. During the same period in the prior year, the company posted $1.61 EPS. The firm's quarterly revenue was up 21.0% compared to the same quarter last year. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. As a group, equities analysts forecast that Brinker International will post 8.3 earnings per share for the current fiscal year.

Insider Activity at Brinker International

In related news, Director Harriet Edelman sold 8,325 shares of the business's stock in a transaction on 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 in the company, valued at $4,538,085. The trade was a 22.36% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Kevin Hochman sold 44,000 shares of the business's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $157.82, for a total value of $6,944,080.00. Following the transaction, the chief executive officer owned 212,867 shares of the company's stock, valued at approximately $33,594,669.94. The trade was a 17.13% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 68,325 shares of company stock worth $10,754,785 in the last quarter. 1.43% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC acquired a new position in Brinker International during the 1st quarter valued at about $206,000. Sumitomo Mitsui Trust Group Inc. acquired a new position in shares of Brinker International in the first quarter valued at about $492,000. Robeco Institutional Asset Management B.V. acquired a new position in shares of Brinker International in the first quarter valued at about $565,000. Teacher Retirement System of Texas increased its holdings in shares of Brinker International by 72.9% in the first quarter. Teacher Retirement System of Texas now owns 55,885 shares of the restaurant operator's stock valued at $8,330,000 after purchasing an additional 23,554 shares during the period. Finally, GAMMA Investing LLC increased its holdings in shares of Brinker International by 153.4% in the first quarter. GAMMA Investing LLC now owns 783 shares of the restaurant operator's stock valued at $117,000 after purchasing an additional 474 shares during the period.

Wall Street Analyst Weigh In

EAT has been the subject of several research reports. BMO Capital Markets upped their target price on Brinker International from $150.00 to $170.00 and gave the stock a "market perform" rating in a report on Thursday, August 14th. UBS Group upped their target price on Brinker International from $155.00 to $165.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Piper Sandler upped their target price on Brinker International from $155.00 to $168.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Morgan Stanley lowered their target price on Brinker International from $161.00 to $160.00 and set an "equal weight" rating for the company in a report on Wednesday. Finally, Barclays reduced their price target on Brinker International from $170.00 to $145.00 and set an "equal weight" rating for the company in a research report on Wednesday. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, Brinker International has a consensus rating of "Moderate Buy" and an average price target of $167.61.

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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