Hsbc Holdings PLC Cuts Stake in Texas Roadhouse, Inc. $TXRH

Key Points

• Hsbc Holdings PLC significantly reduced its stake in Texas Roadhouse by 77.4%, holding only 7,994 shares worth approximately $1.33 million after selling over 27,000 shares in the first quarter.
• Texas Roadhouse reported earnings per share of $1.86 for the last quarter, which fell short of analysts' expectations of $1.95, but its revenue increased by 12.7% year-over-year.
• The company declared a quarterly dividend of $0.68, resulting in an annualized dividend yield of 1.6%, with a payout ratio of 41.53%.

Hsbc Holdings PLC reduced its position in shares of Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 77.4% in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 7,994 shares of the restaurant operator's stock after selling 27,431 shares during the quarter. Hsbc Holdings PLC's holdings in Texas Roadhouse were worth $1,332,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently modified their holdings of the company. Brooklyn Investment Group raised its holdings in shares of Texas Roadhouse by 478.6% during the first quarter. Brooklyn Investment Group now owns 162 shares of the restaurant operator's stock worth $27,000 after acquiring an additional 134 shares in the last quarter. Bogart Wealth LLC acquired a new stake in shares of Texas Roadhouse in the first quarter valued at about $33,000. Park Place Capital Corp grew its position in shares of Texas Roadhouse by 459.1% in the first quarter. Park Place Capital Corp now owns 369 shares of the restaurant operator's stock valued at $61,000 after purchasing an additional 303 shares during the last quarter. MassMutual Private Wealth & Trust FSB grew its position in shares of Texas Roadhouse by 41.9% in the first quarter. MassMutual Private Wealth & Trust FSB now owns 379 shares of the restaurant operator's stock valued at $63,000 after purchasing an additional 112 shares during the last quarter. Finally, Versant Capital Management Inc grew its position in shares of Texas Roadhouse by 153.9% in the first quarter. Versant Capital Management Inc now owns 457 shares of the restaurant operator's stock valued at $76,000 after purchasing an additional 277 shares during the last quarter. Institutional investors and hedge funds own 94.82% of the company's stock.

Insiders Place Their Bets

In other news, President Regina A. Tobin sold 3,153 shares of the business's stock in a transaction that occurred on Monday, August 18th. The shares were sold at an average price of $173.53, for a total value of $547,140.09. Following the sale, the president owned 15,261 shares of the company's stock, valued at $2,648,241.33. The trade was a 17.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CTO Hernan E. Mujica sold 2,189 shares of the company's stock in a transaction that occurred on Thursday, August 21st. The stock was sold at an average price of $172.40, for a total transaction of $377,383.60. Following the sale, the chief technology officer directly owned 17,553 shares in the company, valued at $3,026,137.20. This trade represents a 11.09% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 8,342 shares of company stock valued at $1,443,704. Company insiders own 0.50% of the company's stock.

Texas Roadhouse Price Performance

NASDAQ TXRH traded up $0.03 during mid-day trading on Wednesday, reaching $171.31. 104,351 shares of the stock were exchanged, compared to its average volume of 1,107,209. Texas Roadhouse, Inc. has a one year low of $148.73 and a one year high of $206.04. The stock has a 50 day simple moving average of $181.71 and a 200-day simple moving average of $178.81. The stock has a market cap of $11.38 billion, a P/E ratio of 26.21, a P/E/G ratio of 2.36 and a beta of 0.84.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The restaurant operator reported $1.86 EPS for the quarter, missing analysts' consensus estimates of $1.95 by ($0.09). The company had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. Texas Roadhouse had a return on equity of 31.52% and a net margin of 7.72%.The company's revenue for the quarter was up 12.7% compared to the same quarter last year. During the same quarter in the previous year, the business posted $1.79 earnings per share. Sell-side analysts anticipate that Texas Roadhouse, Inc. will post 7.23 EPS for the current fiscal year.

Texas Roadhouse Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Tuesday, September 2nd will be given a $0.68 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.72 annualized dividend and a yield of 1.6%. Texas Roadhouse's payout ratio is currently 41.53%.

Analysts Set New Price Targets

A number of equities research analysts recently weighed in on the company. Bank of America lifted their target price on Texas Roadhouse from $203.00 to $219.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. Morgan Stanley raised their price target on shares of Texas Roadhouse from $200.00 to $205.00 and gave the stock an "overweight" rating in a research note on Monday, July 14th. Citigroup lifted their target price on shares of Texas Roadhouse from $180.00 to $197.00 and gave the company a "neutral" rating in a research note on Tuesday, July 29th. Stephens raised their price target on shares of Texas Roadhouse from $184.00 to $190.00 and gave the company an "equal weight" rating in a report on Friday, August 8th. Finally, UBS Group lifted their target price on shares of Texas Roadhouse from $200.00 to $220.00 and gave the stock a "buy" rating in a report on Friday, June 6th. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat.com, Texas Roadhouse has a consensus rating of "Moderate Buy" and an average target price of $197.85.

About Texas Roadhouse

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.