Stephens Investment Management Group LLC Grows Stake in Texas Roadhouse, Inc. $TXRH

Key Points

• Stephens Investment Management Group LLC nearly doubled its Texas Roadhouse position in the fourth quarter, increasing holdings by 98.2% to 370,225 shares valued at about $61.5 million.
• Texas Roadhouse reported strong quarterly results, posting EPS of $1.87 versus the $1.80 estimate, while revenue rose 10.5% year over year to $1.63 billion.
• The company also announced a quarterly dividend of $0.75 per share, and analysts remain mixed overall with a consensus rating of Hold despite several firms raising price targets.

Stephens Investment Management Group LLC grew its holdings in Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 98.2% during the fourth quarter, according to the company in its most recent filing with the SEC. The fund owned 370,225 shares of the restaurant operator's stock after acquiring an additional 183,422 shares during the quarter. Stephens Investment Management Group LLC owned about 0.56% of Texas Roadhouse worth $61,457,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of Texas Roadhouse by 7,490.8% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 60,878 shares of the restaurant operator's stock valued at $10,106,000 after acquiring an additional 60,076 shares during the last quarter. Bessemer Group Inc. increased its holdings in shares of Texas Roadhouse by 253.6% in the 4th quarter. Bessemer Group Inc. now owns 530,170 shares of the restaurant operator's stock valued at $88,010,000 after acquiring an additional 380,218 shares during the last quarter. Thrivent Financial for Lutherans increased its holdings in shares of Texas Roadhouse by 1,974.3% in the 4th quarter. Thrivent Financial for Lutherans now owns 414,797 shares of the restaurant operator's stock valued at $68,862,000 after acquiring an additional 394,800 shares during the last quarter. Pinnacle Associates Ltd. grew its stake in Texas Roadhouse by 75.4% during the 4th quarter. Pinnacle Associates Ltd. now owns 3,416 shares of the restaurant operator's stock worth $567,000 after buying an additional 1,469 shares during the last quarter. Finally, Allworth Financial LP increased its position in Texas Roadhouse by 10.8% during the fourth quarter. Allworth Financial LP now owns 1,746 shares of the restaurant operator's stock worth $290,000 after buying an additional 170 shares during the period. Hedge funds and other institutional investors own 94.82% of the company's stock.

Texas Roadhouse Trading Up 0.5%

Shares of TXRH stock opened at $177.97 on Friday. The business's 50 day moving average is $166.60 and its two-hundred day moving average is $172.77. Texas Roadhouse, Inc. has a twelve month low of $153.82 and a twelve month high of $199.99. The company has a market capitalization of $11.70 billion, a P/E ratio of 28.43, a price-to-earnings-growth ratio of 1.95 and a beta of 0.77. The company has a current ratio of 0.46, a quick ratio of 0.45 and a debt-to-equity ratio of 0.03.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced its 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. Texas Roadhouse had a return on equity of 27.86% and a net margin of 6.85%.The company had revenue of $1.63 billion for the quarter, compared to the consensus estimate of $1.64 billion. During the same period last year, the business posted $1.70 EPS. The company's revenue was up 10.5% on a year-over-year basis. Equities analysts forecast that Texas Roadhouse, Inc. will post 6.39 EPS for the current year.

Texas Roadhouse Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders 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 1.7%. The ex-dividend date is Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio (DPR) is 47.92%.

Texas Roadhouse News Roundup

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

• Positive Sentiment: RBC Capital and UBS both turned bullish on Texas Roadhouse, adding to a generally supportive analyst backdrop that can boost investor confidence in TXRH. Texas Roadhouse attracts a bull rating from RBC Capital Texas Roadhouse (TXRH) Gets a Buy from UBS
• Positive Sentiment: JPMorgan raised its price target on TXRH to $188 from $182, signaling expectations for additional upside from current levels. Texas Roadhouse had its price target raised by JPMorgan Chase & Co.
• Positive Sentiment: Texas Roadhouse’s latest earnings beat EPS estimates, and revenue grew 10.5% year over year, reinforcing the stock’s fundamental support after the company’s May 7 report. Texas Roadhouse stock and earnings details
• Neutral Sentiment: Analysts continue to view TXRH favorably overall, but the consensus rating remains “Hold,” which may limit how far the stock can run on news alone.
• Neutral Sentiment: The company also announced a quarterly dividend of $0.75 per share, which supports the investment case but is not likely the main driver of trading today.
• Negative Sentiment: Insiders sold shares this week, including director Gregory Moore and insider Lloyd Paul Marshall, which can create a slight headwind if investors read the activity as limited near-term enthusiasm. SEC filing for Lloyd Paul Marshall transaction

Wall Street Analyst Weigh In

Several research analysts have commented on TXRH shares. Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and set a $200.00 price target on shares of Texas Roadhouse in a research report on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on Texas Roadhouse from $182.00 to $188.00 and gave the stock a "neutral" rating in a research report on Thursday. TD Cowen cut their price target on Texas Roadhouse from $215.00 to $192.00 and set a "buy" rating on the stock in a research report on Friday, May 8th. Morgan Stanley reaffirmed an "overweight" rating and set a $201.00 price target on shares of Texas Roadhouse in a research report on Friday, May 8th. Finally, The Goldman Sachs Group lifted their price target on Texas Roadhouse from $175.00 to $200.00 and gave the stock a "neutral" rating in a research report on Wednesday, January 28th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat, Texas Roadhouse has an average rating of "Hold" and an average price target of $195.09.

Insider Buying and Selling

In other Texas Roadhouse news, insider Lloyd Paul Marshall sold 1,000 shares of Texas Roadhouse stock in a transaction that occurred on Thursday, May 14th. The stock was sold at an average price of $178.34, for a total value of $178,340.00. Following the transaction, the insider directly owned 10,326 shares in the company, valued at approximately $1,841,538.84. This trade represents a 8.83% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Curtis Warfield sold 2,640 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $183.05, for a total value of $483,252.00. Following the completion of the sale, the director directly owned 5,361 shares of the company's stock, valued at $981,331.05. This represents a 33.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 17,878 shares of company stock worth $3,102,411. 0.50% of the stock is currently owned by 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.

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