Citigroup Lowers Texas Roadhouse (NASDAQ:TXRH) Price Target to $174.00

Key Points

• Citigroup lowered its price target on Texas Roadhouse to $174 from $176 and kept a neutral rating, implying about 1.9% downside from the current share price.
• Other analysts were mixed: Truist trimmed its target to $186, Deutsche Bank and BTIG maintained $200 targets, while Wall Street Zen downgraded the stock to sell. Overall, MarketBeat shows a Hold consensus with an average target of $193.90.
• Texas Roadhouse recently reported Q1 EPS of $1.87, beating estimates, while revenue rose 10.5% year over year to $1.63 billion, helping the stock trade higher on the day.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) had its price objective dropped by Citigroup from $176.00 to $174.00 in a report released on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the restaurant operator's stock. Citigroup's target price points to a potential downside of 1.86% from the stock's current price.

Several other brokerages also recently weighed in on TXRH. Truist Financial cut their price target on Texas Roadhouse from $188.00 to $186.00 and set a "hold" rating for the company in a report on Friday, February 20th. BTIG Research reiterated a "buy" rating and issued a $200.00 price target on shares of Texas Roadhouse in a report on Friday, February 20th. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and set a $200.00 price objective on shares of Texas Roadhouse in a research note on Friday. Wall Street Zen cut shares of Texas Roadhouse from a "hold" rating to a "sell" rating in a research note on Saturday, May 2nd. Finally, Stephens boosted their price objective on shares of Texas Roadhouse from $168.00 to $180.00 and gave the company an "equal weight" rating in a research note on Friday, February 20th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and fourteen have given a Hold rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus target price of $193.90.

Texas Roadhouse Price Performance

TXRH traded up $19.37 during trading on Friday, hitting $177.30. The company's stock had a trading volume of 2,897,295 shares, compared to its average volume of 1,045,903. The firm's 50 day moving average price is $166.81 and its 200-day moving average price is $172.64. The stock has a market cap of $11.69 billion, a PE ratio of 29.11, a PEG ratio of 1.83 and a beta of 0.77. Texas Roadhouse has a twelve month low of $153.82 and a twelve month high of $199.99.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.07. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.64 billion. Texas Roadhouse had a return on equity of 27.88% and a net margin of 6.90%.Texas Roadhouse's revenue was up 10.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.70 EPS. Equities analysts anticipate that Texas Roadhouse will post 6.33 earnings per share for the current year.

Insider Buying and Selling

In other news, Director Donna E. Epps sold 850 shares of the stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $172.45, for a total transaction of $146,582.50. Following the transaction, the director owned 4,892 shares of the company's stock, valued at approximately $843,625.40. This trade represents a 14.80% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, President Regina A. Tobin sold 4,450 shares of Texas Roadhouse stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $171.00, for a total value of $760,950.00. Following the completion of the transaction, the president owned 13,778 shares of the company's stock, valued at $2,356,038. This trade represents a 24.41% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,988 shares of company stock worth $2,218,144 over the last quarter. Company insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of TXRH. Capital World Investors grew its position in shares of Texas Roadhouse by 580.2% in the 3rd quarter. Capital World Investors now owns 2,236,885 shares of the restaurant operator's stock worth $371,658,000 after acquiring an additional 1,908,033 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in shares of Texas Roadhouse in the 3rd quarter worth approximately $157,310,000. Wellington Management Group LLP grew its position in shares of Texas Roadhouse by 228.4% in the 4th quarter. Wellington Management Group LLP now owns 1,329,052 shares of the restaurant operator's stock worth $220,623,000 after acquiring an additional 924,306 shares in the last quarter. Norges Bank acquired a new position in shares of Texas Roadhouse in the 4th quarter worth approximately $145,734,000. Finally, Victory Capital Management Inc. grew its position in shares of Texas Roadhouse by 770.6% in the 3rd quarter. Victory Capital Management Inc. now owns 972,251 shares of the restaurant operator's stock worth $161,540,000 after acquiring an additional 860,571 shares in the last quarter. Institutional investors own 94.82% of the company's stock.

More Texas Roadhouse News

Here are the key news stories impacting Texas Roadhouse this week:

• Positive Sentiment: Texas Roadhouse reported first-quarter EPS of $1.87, ahead of consensus estimates, while revenue rose 10.5% year over year to $1.63 billion, signaling continued demand for its restaurants.
• Positive Sentiment: The company raised its quarterly dividend to $0.75 per share, reinforcing management’s confidence in cash generation and giving income-focused investors a larger payout.
• Positive Sentiment: Several market headlines pointed to the stock surging after the earnings release, suggesting investors viewed the quarter as better than expected overall, despite a slight revenue miss versus estimates.
• Neutral Sentiment: Analysts and commentary were mixed on the report: earnings were strong, but revenue came in slightly below expectations, keeping some caution around how much upside is left after the post-earnings move.
• Neutral Sentiment: A Seeking Alpha piece on May 8 upgraded the stock, but described upside potential as only moderate, implying the shares may be fairly valued after the recent run-up. Texas Roadhouse: It Hasn't Bottomed Out Yet, But Upside Potential Is Medium Well (Rating Upgrade)

About Texas Roadhouse

Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand‐cut steaks, fall‐off‐the‐bone ribs, chicken, seafood and house specialties. Each restaurant features a Western‐themed décor, open kitchens and a signature line dance presentation of fresh, made‐from‐scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family‐friendly environment.

The concept was created in 1993 by founder Kent Taylor, who sought to combine high‐quality steaks with an approachable, community‐oriented atmosphere.

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