Geode Capital Management LLC Grows Position in Texas Roadhouse, Inc. $TXRH

Key Points

• Geode Capital Management increased its Texas Roadhouse stake by 1.9% in the fourth quarter, bringing its holdings to 1.37 million shares worth about $227 million. Institutional ownership remains very high at 94.82%.
• Texas Roadhouse reported strong quarterly results, with EPS of $1.87 beating estimates and revenue rising 10.5% year over year to $1.63 billion. Analysts still expect full-year EPS of 6.4.
• The company declared a quarterly dividend of $0.75 per share, payable June 30, for an annualized yield of about 1.8%. Meanwhile, several insiders have sold shares recently, and analysts’ average rating on the stock is currently Hold.

Geode Capital Management LLC raised its position in shares of Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 1.9% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,367,120 shares of the restaurant operator's stock after buying an additional 24,834 shares during the quarter. Geode Capital Management LLC owned about 2.07% of Texas Roadhouse worth $226,984,000 as of its most recent SEC filing.

Several other institutional investors have also added to or reduced their stakes in the company. Summitry LLC grew its holdings in Texas Roadhouse by 19.8% during the 4th quarter. Summitry LLC now owns 4,064 shares of the restaurant operator's stock valued at $675,000 after buying an additional 671 shares in the last quarter. Clearstead Advisors LLC grew its holdings in Texas Roadhouse by 3.9% during the 4th quarter. Clearstead Advisors LLC now owns 5,525 shares of the restaurant operator's stock valued at $917,000 after buying an additional 208 shares in the last quarter. New Age Alpha Advisors LLC grew its holdings in Texas Roadhouse by 6.0% during the 4th quarter. New Age Alpha Advisors LLC now owns 14,642 shares of the restaurant operator's stock valued at $2,431,000 after buying an additional 831 shares in the last quarter. Todd Asset Management LLC grew its holdings in Texas Roadhouse by 13.7% during the 4th quarter. Todd Asset Management LLC now owns 14,572 shares of the restaurant operator's stock valued at $2,419,000 after buying an additional 1,760 shares in the last quarter. Finally, Jefferies Financial Group Inc. purchased a new position in Texas Roadhouse during the 4th quarter valued at approximately $977,000. Hedge funds and other institutional investors own 94.82% of the company's stock.

Insider Activity

In related news, insider Christopher C. Colson sold 499 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $179.22, for a total transaction of $89,430.78. Following the completion of the sale, the insider directly owned 14,500 shares of the company's stock, valued at approximately $2,598,690. This trade represents a 3.33% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Jane Grote Abell sold 339 shares of the firm's stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $177.43, for a total value of $60,148.77. Following the sale, the director directly owned 2,161 shares of the company's stock, valued at $383,426.23. This represents a 13.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 18,716 shares of company stock worth $3,251,991 in the last three months. Corporate insiders own 0.50% of the company's stock.

Texas Roadhouse Price Performance

NASDAQ:TXRH opened at $170.94 on Wednesday. The firm has a market capitalization of $11.24 billion, a price-to-earnings ratio of 27.31, a PEG ratio of 1.92 and a beta of 0.79. Texas Roadhouse, Inc. has a 1 year low of $153.82 and a 1 year high of $197.00. The business has a 50 day simple moving average of $168.15 and a 200-day simple moving average of $173.82. The company has a debt-to-equity ratio of 0.03, a current ratio of 0.46 and a quick ratio of 0.40.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last posted 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 during the quarter, compared to analyst estimates 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% on a year-over-year basis. During the same period last year, the company earned $1.70 EPS. Equities analysts forecast that Texas Roadhouse, Inc. will post 6.4 EPS for the current year.

Texas Roadhouse Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 2nd will be paid a dividend of $0.75 per share. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date of this dividend is Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio (DPR) is currently 47.92%.

Analyst Ratings Changes

Several research firms have weighed in on TXRH. Wall Street Zen upgraded Texas Roadhouse from a "sell" rating to a "hold" rating in a report on Sunday, May 10th. Morgan Stanley reaffirmed an "overweight" rating and issued a $201.00 price objective on shares of Texas Roadhouse in a research note on Friday, May 8th. BMO Capital Markets raised their price objective on Texas Roadhouse from $165.00 to $180.00 and gave the company a "market perform" rating in a research note on Thursday, May 21st. Truist Financial lowered their price objective on Texas Roadhouse from $188.00 to $186.00 and set a "hold" rating for the company in a research note on Friday, February 20th. Finally, JPMorgan Chase & Co. raised their price objective on Texas Roadhouse from $182.00 to $188.00 and gave the company a "neutral" rating in a research note on Thursday, May 14th. One 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. Based on data from MarketBeat, Texas Roadhouse currently has an average rating of "Hold" and an average price target of $196.36.

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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