Texas Roadhouse, Inc. $TXRH Stock Holdings Decreased by Geneva Capital Management LLC

Key Points

• Geneva Capital trimmed its Texas Roadhouse stake by 0.7% to 954,729 shares (about $158.6M), even as several large institutions — including AllianceBernstein, Capital World Investors, AQR and Victory Capital — substantially increased or initiated positions, leaving institutional ownership at roughly 94.8%.
• Insider selling continues: CEO Gerald Morgan sold 5,000 shares and Director Donna E. Epps sold 850 shares (insiders sold 12,550 shares in the last 90 days), leaving insiders with about 0.5% ownership.
• Earnings miss and dividend increase: TXRH reported $1.28 EPS vs. $1.53 expected and revenue of $1.48B vs. $1.50B, while the company raised its quarterly dividend to $0.75 (annualized $3.00, ~1.7% yield).

Geneva Capital Management LLC cut its holdings in Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 0.7% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 954,729 shares of the restaurant operator's stock after selling 6,661 shares during the quarter. Texas Roadhouse accounts for 2.7% of Geneva Capital Management LLC's portfolio, making the stock its 6th biggest holding. Geneva Capital Management LLC owned 1.44% of Texas Roadhouse worth $158,628,000 as of its most recent SEC filing.

A number of other hedge funds have also made changes to their positions in the company. Alliancebernstein L.P. raised its position in shares of Texas Roadhouse by 528.2% in the second quarter. Alliancebernstein L.P. now owns 3,172,738 shares of the restaurant operator's stock valued at $594,603,000 after purchasing an additional 2,667,716 shares during the period. Capital World Investors raised its holdings in 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 acquiring an additional 1,908,033 shares in the last quarter. AQR Capital Management LLC lifted its position in Texas Roadhouse by 85.7% in the second quarter. AQR Capital Management LLC now owns 2,343,000 shares of the restaurant operator's stock worth $439,102,000 after purchasing an additional 1,081,413 shares during the period. Victory Capital Management Inc. grew its stake in shares of 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 purchasing an additional 860,571 shares during the period. Finally, Norges Bank acquired a new stake in shares of Texas Roadhouse in the 2nd quarter valued at $159,007,000. Hedge funds and other institutional investors own 94.82% of the company's stock.

Insider Activity at Texas Roadhouse

In related news, Director Donna E. Epps sold 850 shares of the company's stock in a transaction dated Friday, March 6th. The shares were sold at an average price of $172.45, for a total value of $146,582.50. Following the sale, the director owned 4,892 shares in the company, valued at $843,625.40. This represents a 14.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Gerald L. Morgan sold 5,000 shares of the firm's stock in a transaction dated 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 in the company, valued at approximately $17,987,704. The trade was a 5.17% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 12,550 shares of company stock valued at $2,353,936. 0.50% of the stock is owned by company insiders.

Texas Roadhouse Stock Performance

Shares of TXRH opened at $172.14 on Wednesday. The business's fifty day moving average is $182.70 and its 200-day moving average is $173.65. The firm has a market cap of $11.39 billion, a price-to-earnings ratio of 28.27, a PEG ratio of 1.87 and a beta of 0.86. Texas Roadhouse, Inc. has a 52-week low of $148.73 and a 52-week high of $199.99.

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

Texas Roadhouse Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th will be given a dividend of $0.75 per share. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Texas Roadhouse's previous quarterly dividend of $0.68. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. Texas Roadhouse's payout ratio is currently 44.66%.

Analysts Set New Price Targets

TXRH has been the topic of several research reports. Stephens upped their price target on shares of Texas Roadhouse from $168.00 to $180.00 and gave the stock an "equal weight" rating in a research report on Friday, February 20th. Wells Fargo & Company lifted their price objective on Texas Roadhouse from $195.00 to $220.00 and gave the stock an "overweight" rating in a research note on Thursday, January 22nd. Benchmark restated a "hold" rating on shares of Texas Roadhouse in a research report on Monday, February 23rd. Morgan Stanley dropped their price target on Texas Roadhouse from $208.00 to $202.00 and set an "overweight" rating on the stock in a research note on Monday, February 23rd. Finally, Truist Financial lowered their price target on shares of Texas Roadhouse from $188.00 to $186.00 and set a "hold" rating on the stock in a research note on Friday, February 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $196.55.

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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