Morgan Stanley Issues Pessimistic Forecast for Brinker International (NYSE:EAT) Stock Price

Key Points

• Morgan Stanley has reduced its price target for Brinker International's stock from $161.00 to $160.00, maintaining an "equal weight" rating, which suggests a potential upside of 21.84% from the current price.
• Brinker International's recent earnings report showed an EPS of $2.49, slightly surpassing estimates, with a revenue increase of 21.0% year-over-year.
• Multiple analysts have reassessed Brinker International's stock, with target prices ranging from $156.00 to $210.00, reflecting a diverse outlook on the company's performance.

Brinker International (NYSE:EAT - Get Free Report) had its price objective dropped by investment analysts at Morgan Stanley from $161.00 to $160.00 in a report released on Wednesday,Benzinga reports. The firm presently has an "equal weight" rating on the restaurant operator's stock. Morgan Stanley's target price would indicate a potential upside of 21.84% from the stock's current price.

Other equities analysts have also recently issued reports about the company. Evercore ISI upgraded Brinker International from an "in-line" rating to an "outperform" rating and lifted their target price for the stock from $190.00 to $210.00 in a report on Thursday, September 4th. UBS Group lifted their target price on Brinker International from $155.00 to $165.00 and gave the stock a "neutral" rating in a report on Thursday, August 14th. Citigroup decreased their target price on Brinker International from $168.00 to $156.00 and set a "neutral" rating on the stock in a report on Tuesday, October 14th. Piper Sandler lifted their price target on Brinker International from $155.00 to $168.00 and gave the company a "neutral" rating in a report on Thursday, August 14th. Finally, Wells Fargo & Company upgraded Brinker International from an "equal weight" rating to an "overweight" rating and lifted their price target for the company from $165.00 to $175.00 in a report on Monday, September 22nd. Nine equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $167.61.

Brinker International Price Performance

Shares of EAT traded down $2.14 during midday trading on Wednesday, reaching $131.33. The stock had a trading volume of 328,063 shares, compared to its average volume of 1,444,220. Brinker International has a 52 week low of $91.70 and a 52 week high of $192.21. The company has a debt-to-equity ratio of 1.15, a current ratio of 0.31 and a quick ratio of 0.25. The firm's 50 day moving average price is $143.12 and its 200-day moving average price is $153.83. The company has a market capitalization of $5.83 billion, a P/E ratio of 15.80, a P/E/G ratio of 0.86 and a beta of 1.38.

Brinker International (NYSE:EAT - Get Free Report) last issued its earnings results on Wednesday, August 13th. The restaurant operator reported $2.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.47 by $0.02. The business had revenue of $1.46 billion for the quarter, compared to analysts' expectations of $1.42 billion. Brinker International had a return on equity of 211.86% and a net margin of 7.12%.The company's quarterly revenue was up 21.0% on a year-over-year basis. During the same period in the previous year, the firm posted $1.61 EPS. Brinker International has set its FY 2026 guidance at 9.900-10.50 EPS. On average, analysts forecast that Brinker International will post 8.3 earnings per share for the current fiscal year.

Insider Buying and Selling at Brinker International

In other Brinker International news, Director Harriet Edelman sold 8,325 shares of the business's stock in a transaction dated Thursday, August 14th. The stock was sold at an average price of $157.00, for a total value of $1,307,025.00. Following the transaction, the director owned 28,905 shares in the company, valued at $4,538,085. The trade was a 22.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Douglas N. Comings sold 16,000 shares of the business's stock in a transaction dated Tuesday, September 9th. The shares were sold at an average price of $156.48, for a total value of $2,503,680.00. Following the completion of the transaction, the chief operating officer owned 12,951 shares in the company, valued at $2,026,572.48. This trade represents a 55.27% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 68,325 shares of company stock worth $10,754,785 over the last 90 days. 1.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of EAT. Concord Wealth Partners purchased a new position in Brinker International in the second quarter valued at about $25,000. Allworth Financial LP grew its stake in Brinker International by 105.8% in the second quarter. Allworth Financial LP now owns 142 shares of the restaurant operator's stock valued at $26,000 after purchasing an additional 73 shares in the last quarter. Salomon & Ludwin LLC purchased a new position in Brinker International in the third quarter valued at about $26,000. Farther Finance Advisors LLC grew its stake in Brinker International by 575.0% in the first quarter. Farther Finance Advisors LLC now owns 189 shares of the restaurant operator's stock valued at $29,000 after purchasing an additional 161 shares in the last quarter. Finally, AdvisorNet Financial Inc acquired a new stake in shares of Brinker International in the second quarter worth about $33,000.

Brinker International Company Profile

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.