South Dakota Investment Council Raises Stake in Texas Roadhouse, Inc. $TXRH

Key Points

• Institutional buying: South Dakota Investment Council boosted its TXRH stake by 68.4% to 15,264 shares (~$2.54M) and Victory Capital increased its position by 770.6% to 972,251 shares, contributing to overall institutional ownership of about 94.82%.
• Earnings miss: Texas Roadhouse reported Q EPS of $1.28 versus estimates of $1.53 and revenue of $1.48B versus $1.50B, though revenue was up 3.1% year‑over‑year.
• Dividend and outlook: The company raised its quarterly dividend to $0.75 (annualized $3.00, ~1.7% yield) while analysts maintain a "Moderate Buy" consensus with an average target of $196.55; CEO Gerald Morgan sold 5,000 shares in January.

South Dakota Investment Council raised its holdings in Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 68.4% during the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 15,264 shares of the restaurant operator's stock after purchasing an additional 6,200 shares during the quarter. South Dakota Investment Council's holdings in Texas Roadhouse were worth $2,536,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also made changes to their positions in TXRH. Victory Capital Management Inc. increased its position in Texas Roadhouse by 770.6% in the 3rd quarter. Victory Capital Management Inc. now owns 972,251 shares of the restaurant operator's stock valued at $161,540,000 after acquiring an additional 860,571 shares during the period. Bahl & Gaynor Inc. grew its stake in shares of Texas Roadhouse by 3.0% in the 3rd quarter. Bahl & Gaynor Inc. now owns 237,600 shares of the restaurant operator's stock valued at $39,477,000 after purchasing an additional 6,828 shares during the last quarter. Hendershot Investments Inc. raised its stake in shares of Texas Roadhouse by 13.1% during the third quarter. Hendershot Investments Inc. now owns 72,111 shares of the restaurant operator's stock worth $11,981,000 after purchasing an additional 8,371 shares during the last quarter. Erste Asset Management GmbH lifted its holdings in shares of Texas Roadhouse by 19.6% during the third quarter. Erste Asset Management GmbH now owns 140,380 shares of the restaurant operator's stock worth $23,383,000 after purchasing an additional 22,971 shares during the period. Finally, Xponance Inc. grew its position in Texas Roadhouse by 1.5% in the 3rd quarter. Xponance Inc. now owns 13,826 shares of the restaurant operator's stock valued at $2,297,000 after buying an additional 201 shares during the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

Texas Roadhouse Stock Performance

Shares of TXRH stock opened at $178.70 on Thursday. The stock has a fifty day moving average price of $182.41 and a 200 day moving average price of $173.71. The stock has a market cap of $11.82 billion, a PE ratio of 29.34, a P/E/G ratio of 1.96 and a beta of 0.86. Texas Roadhouse, Inc. has a 1 year low of $148.73 and a 1 year high of $199.99.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The restaurant operator reported $1.28 earnings per share for the quarter, missing analysts' consensus estimates of $1.53 by ($0.25). Texas Roadhouse had a net margin of 6.90% and a return on equity of 27.88%. The firm had revenue of $1.48 billion during the quarter, compared to analysts' expectations of $1.50 billion. During the same quarter in the prior year, the business earned $1.73 EPS. The company's quarterly revenue was up 3.1% compared to the same quarter last year. As a group, equities research analysts predict that Texas Roadhouse, Inc. will post 7.23 earnings per share for the current year.

Texas Roadhouse Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 1.7%. This is a boost from Texas Roadhouse's previous quarterly dividend of $0.68. The ex-dividend date of this dividend is Tuesday, March 17th. Texas Roadhouse's payout ratio is currently 44.66%.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on TXRH. Morgan Stanley cut their price objective on shares of Texas Roadhouse from $208.00 to $202.00 and set an "overweight" rating for the company in a research report on Monday, February 23rd. Weiss Ratings reissued a "buy (b-)" rating on shares of Texas Roadhouse in a report on Monday, December 29th. Zacks Research raised Texas Roadhouse from a "strong sell" rating to a "hold" rating in a report on Thursday, January 8th. Barclays set a $188.00 target price on Texas Roadhouse in a research note on Friday, February 20th. Finally, Sanford C. Bernstein set a $185.00 price target on Texas Roadhouse in a research note on Wednesday, January 7th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and thirteen have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $196.55.

Insider Activity at Texas Roadhouse

In other news, CEO Gerald L. Morgan sold 5,000 shares of the firm's stock in a transaction that occurred on Tuesday, January 20th. The shares were sold at an average price of $196.00, for a total transaction of $980,000.00. Following the completion of the transaction, the chief executive officer directly owned 91,774 shares of the company's stock, valued at $17,987,704. This trade represents a 5.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.50% of the stock is owned by corporate insiders.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.