Gator Capital Management LLC Takes $1.62 Million Position in Texas Roadhouse, Inc. $TXRH

Key Points

• Gator Capital Management initiated a new position in Texas Roadhouse, buying 9,731 shares worth about $1.62 million in the fourth quarter.
• Institutional ownership remains very high, with hedge funds and other institutional investors holding about 94.82% of the company’s stock. Several large funds also recently increased or started stakes in TXRH.
• Texas Roadhouse reported better-than-expected quarterly EPS of $1.87, while revenue came in slightly below estimates. The company also announced a quarterly dividend of $0.75 per share, implying a 1.8% yield.

Gator Capital Management LLC purchased a new stake in Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 9,731 shares of the restaurant operator's stock, valued at approximately $1,615,000.

Several other institutional investors and hedge funds have also recently modified their holdings of TXRH. Capital World Investors increased its stake 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 valued at $371,658,000 after purchasing an additional 1,908,033 shares in the last quarter. Balyasny Asset Management L.P. purchased a new stake in Texas Roadhouse during the 3rd quarter worth approximately $157,310,000. Norges Bank purchased a new stake in Texas Roadhouse during the 4th quarter worth approximately $145,734,000. Victory Capital Management Inc. increased its stake in Texas Roadhouse by 770.6% during the 3rd quarter. Victory Capital Management Inc. now owns 972,251 shares of the restaurant operator's stock worth $161,540,000 after buying an additional 860,571 shares in the last quarter. Finally, Steadfast Capital Management LP increased its stake in Texas Roadhouse by 99.2% during the 3rd quarter. Steadfast Capital Management LP now owns 1,275,648 shares of the restaurant operator's stock worth $211,949,000 after buying an additional 635,178 shares in the last quarter. Hedge funds and other institutional investors own 94.82% of the company's stock.

Insiders Place Their Bets

In other Texas Roadhouse news, insider Christopher C. Colson sold 499 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $179.22, for a total transaction of $89,430.78. Following the transaction, the insider owned 14,500 shares of the company's stock, valued at approximately $2,598,690. This trade represents a 3.33% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Jane Grote Abell sold 339 shares of the firm's stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $177.43, for a total value of $60,148.77. Following the transaction, the director directly owned 2,161 shares in the company, valued at approximately $383,426.23. The trade was a 13.56% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 11,166 shares of company stock valued at $1,963,705. 0.50% of the stock is owned by company insiders.

Analyst Upgrades and Downgrades

TXRH has been the subject of several research reports. Citigroup cut their price objective on Texas Roadhouse from $176.00 to $174.00 and set a "neutral" rating for the company in a research note on Friday, May 8th. BMO Capital Markets boosted their price objective on Texas Roadhouse from $165.00 to $180.00 and gave the stock a "market perform" rating in a research note on Thursday, May 21st. Stephens upped their price target on Texas Roadhouse from $168.00 to $180.00 and gave the company an "equal weight" rating in a research report on Friday, February 20th. Morgan Stanley restated an "overweight" rating and issued a $201.00 price target on shares of Texas Roadhouse in a research report on Friday, May 8th. Finally, Stifel Nicolaus upped their price target on Texas Roadhouse from $170.00 to $180.00 and gave the company a "hold" rating in a research report on Tuesday, May 12th. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and fourteen have given a Hold rating to the company's stock. According to MarketBeat.com, Texas Roadhouse currently has an average rating of "Hold" and a consensus price target of $196.36.

Texas Roadhouse Stock Up 0.1%

NASDAQ:TXRH opened at $167.86 on Friday. The company has a quick ratio of 0.40, a current ratio of 0.46 and a debt-to-equity ratio of 0.03. The stock's fifty day moving average is $168.33 and its two-hundred day moving average is $173.65. Texas Roadhouse, Inc. has a 52 week low of $153.82 and a 52 week high of $197.00. The stock has a market capitalization of $11.03 billion, a price-to-earnings ratio of 26.81, a price-to-earnings-growth ratio of 1.84 and a beta of 0.79.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.80 by $0.07. The business had revenue of $1.63 billion for the quarter, compared to analysts' expectations of $1.64 billion. Texas Roadhouse had a return on equity of 27.86% and a net margin of 6.85%.The company's revenue for the quarter was up 10.5% compared to the same quarter last year. During the same period last year, the firm earned $1.70 earnings per share. Research analysts anticipate that Texas Roadhouse, Inc. will post 6.4 EPS for the current year.

Texas Roadhouse Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 2nd will be paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio (DPR) is presently 47.92%.

Texas Roadhouse Profile

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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