Citigroup Forecasts Strong Price Appreciation for Texas Roadhouse (NASDAQ:TXRH) Stock

Key Points

• Citigroup analysts have increased their price target for Texas Roadhouse (NASDAQ: TXRH) from $180.00 to $197.00, suggesting a potential upside of 6.90% from its previous close.
• The stock is currently rated as a "Moderate Buy"** by analysts, with a consensus price target of $196.85, reflecting a favorable sentiment among investment analysts.
• Texas Roadhouse saw a 11.8% increase in revenue compared to the same quarter last year, reporting $1.45 billion in revenue despite missing earnings per share estimates.

Texas Roadhouse (NASDAQ:TXRH - Free Report) had its price objective boosted by Citigroup from $180.00 to $197.00 in a research note published on Tuesday morning,Benzinga reports. The brokerage currently has a neutral rating on the restaurant operator's stock.

TXRH has been the subject of a number of other reports. Robert W. Baird set a $180.00 target price on Texas Roadhouse and gave the company an "outperform" rating in a research report on Monday, April 7th. Melius began coverage on Texas Roadhouse in a research report on Monday, July 14th. They issued a "buy" rating and a $235.00 target price for the company. The Goldman Sachs Group upped their target price on Texas Roadhouse from $184.00 to $205.00 and gave the company a "neutral" rating in a research report on Wednesday, June 4th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Texas Roadhouse in a research report on Tuesday, July 15th. Finally, Bank of America upped their target price on Texas Roadhouse from $203.00 to $219.00 and gave the company a "buy" rating in a research report on Friday, July 18th. Ten research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $196.85.

Texas Roadhouse Stock Performance

Shares of NASDAQ:TXRH traded down $2.26 on Tuesday, hitting $182.87. 271,087 shares of the company's stock were exchanged, compared to its average volume of 1,099,061. The firm's 50-day moving average is $189.10 and its 200 day moving average is $179.13. The company has a market capitalization of $12.13 billion, a PE ratio of 28.22, a P/E/G ratio of 2.64 and a beta of 0.87. Texas Roadhouse has a 1-year low of $148.73 and a 1-year high of $206.04.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings data on Thursday, May 8th. The restaurant operator reported $1.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.75 by ($0.05). The business had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.44 billion. Texas Roadhouse had a return on equity of 32.33% and a net margin of 7.89%. The company's revenue was up 11.8% compared to the same quarter last year. During the same period in the prior year, the company posted $1.69 earnings per share. On average, analysts anticipate that Texas Roadhouse will post 7.23 EPS for the current fiscal year.

Texas Roadhouse Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, July 1st. Stockholders of record on Tuesday, June 3rd were paid a dividend of $0.68 per share. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Tuesday, June 3rd. Texas Roadhouse's dividend payout ratio is 41.98%.

Insider Buying and Selling

In other news, Director Gregory N. Moore sold 1,000 shares of the stock in a transaction that occurred on Monday, May 12th. The stock was sold at an average price of $187.62, for a total transaction of $187,620.00. Following the completion of the transaction, the director directly owned 38,050 shares of the company's stock, valued at approximately $7,138,941. This represents a 2.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Director Donna E. Epps sold 800 shares of the stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $186.52, for a total value of $149,216.00. Following the transaction, the director directly owned 4,632 shares of the company's stock, valued at approximately $863,960.64. This trade represents a 14.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Texas Roadhouse

Several hedge funds have recently bought and sold shares of the company. Invesco Ltd. increased its stake in Texas Roadhouse by 5.9% in the 4th quarter. Invesco Ltd. now owns 2,479,323 shares of the restaurant operator's stock valued at $447,344,000 after purchasing an additional 138,675 shares in the last quarter. Axiom Investors LLC DE boosted its holdings in shares of Texas Roadhouse by 3,696.7% during the first quarter. Axiom Investors LLC DE now owns 2,173,807 shares of the restaurant operator's stock worth $362,221,000 after purchasing an additional 2,116,552 shares during the last quarter. T. Rowe Price Investment Management Inc. boosted its holdings in shares of Texas Roadhouse by 209.3% during the first quarter. T. Rowe Price Investment Management Inc. now owns 1,609,608 shares of the restaurant operator's stock worth $268,209,000 after purchasing an additional 1,089,256 shares during the last quarter. FMR LLC boosted its holdings in shares of Texas Roadhouse by 44.8% during the fourth quarter. FMR LLC now owns 1,300,987 shares of the restaurant operator's stock worth $234,737,000 after purchasing an additional 402,465 shares during the last quarter. Finally, AQR Capital Management LLC boosted its holdings in shares of Texas Roadhouse by 54.3% during the first quarter. AQR Capital Management LLC now owns 1,261,587 shares of the restaurant operator's stock worth $209,840,000 after purchasing an additional 443,767 shares during the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.