WCM Investment Management LLC Grows Stock Position in Texas Roadhouse, Inc. $TXRH

Key Points

• WCM Investment Management LLC increased its Texas Roadhouse stake by 7.3% in the first quarter, ending with 136,387 shares valued at about $22.1 million.
• Texas Roadhouse reported strong quarterly results, with EPS of $1.87 beating estimates and revenue up 10.5% year over year to $1.63 billion.
• The company paid a quarterly dividend of $0.75 per share and currently offers an annualized yield of about 1.5%; analysts have a Hold consensus with an average target price of $194.90.

WCM Investment Management LLC lifted its holdings in shares of Texas Roadhouse, Inc. (NASDAQ:TXRH - Free Report) by 7.3% during the first quarter, according to its most recent disclosure with the SEC. The fund owned 136,387 shares of the restaurant operator's stock after acquiring an additional 9,287 shares during the period. WCM Investment Management LLC owned approximately 0.21% of Texas Roadhouse worth $22,138,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. NewEdge Advisors LLC increased its stake in Texas Roadhouse by 12.0% during the 1st quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator's stock valued at $404,000 after purchasing an additional 259 shares in the last quarter. Focus Partners Wealth increased its position in shares of Texas Roadhouse by 23.3% in the 1st quarter. Focus Partners Wealth now owns 6,124 shares of the restaurant operator's stock valued at $1,020,000 after acquiring an additional 1,157 shares during the period. Geneos Wealth Management Inc. raised its stake in Texas Roadhouse by 36.0% in the 1st quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator's stock worth $70,000 after acquiring an additional 111 shares during the last quarter. Sivia Capital Partners LLC purchased a new position in Texas Roadhouse in the 2nd quarter worth $657,000. Finally, Marshall Wace LLP acquired a new stake in Texas Roadhouse during the 2nd quarter worth about $1,936,000. Institutional investors and hedge funds own 94.82% of the company's stock.

Insider Activity at Texas Roadhouse

In related news, General Counsel Sean G. Renfroe sold 426 shares of Texas Roadhouse stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $192.53, for a total transaction of $82,017.78. Following the transaction, the general counsel owned 860 shares in the company, valued at approximately $165,575.80. This trade represents a 33.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gregory N. Moore sold 1,250 shares of the business's stock in a transaction on Monday, May 11th. The stock was sold at an average price of $178.14, for a total value of $222,675.00. Following the transaction, the director directly owned 30,900 shares in the company, valued at $5,504,526. This trade represents a 3.89% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 6,154 shares of company stock worth $1,115,864 in the last 90 days. 0.50% of the stock is owned by insiders.

Texas Roadhouse Stock Performance

NASDAQ:TXRH opened at $197.03 on Monday. The company has a debt-to-equity ratio of 0.03, a quick ratio of 0.40 and a current ratio of 0.46. The stock has a market capitalization of $12.95 billion, a PE ratio of 31.47, a P/E/G ratio of 2.11 and a beta of 0.78. Texas Roadhouse, Inc. has a fifty-two week low of $153.82 and a fifty-two week high of $200.11. The company has a fifty day moving average of $180.54 and a two-hundred day moving average of $176.53.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.07. The firm had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.64 billion. Texas Roadhouse had a net margin of 6.85% and a return on equity of 27.86%. The company's revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.70 EPS. As a group, research analysts forecast that Texas Roadhouse, Inc. will post 6.44 earnings per share for the current fiscal year.

Texas Roadhouse Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Tuesday, June 2nd were paid a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a yield of 1.5%. The ex-dividend date of this dividend was Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio is currently 47.92%.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on TXRH shares. Morgan Stanley reissued an "overweight" rating and issued a $201.00 price objective on shares of Texas Roadhouse in a report on Friday, May 8th. Wall Street Zen upgraded Texas Roadhouse from a "sell" rating to a "hold" rating in a research report on Sunday, May 10th. Barclays reduced their price target on shares of Texas Roadhouse from $188.00 to $175.00 and set an "equal weight" rating for the company in a research report on Friday, May 8th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Texas Roadhouse in a report on Friday, May 29th. Finally, Guggenheim reissued a "buy" rating and set a $210.00 target price on shares of Texas Roadhouse in a report on Monday, May 18th. Ten analysts have rated the stock with a Buy rating and thirteen have given a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $194.90.

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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