Texas Roadhouse (NASDAQ:TXRH) Shares Gap Up After Earnings Beat

Shares of Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $157.90, but opened at $170.10. Texas Roadhouse shares last traded at $165.63, with a volume of 350,741 shares traded.

The restaurant operator reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.65 by $0.04. Texas Roadhouse had a return on equity of 27.43% and a net margin of 6.58%. The company had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.32 billion. During the same period last year, the company earned $1.28 earnings per share. The business's revenue was up 12.5% compared to the same quarter last year.

Texas Roadhouse Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 26th. Investors of record on Wednesday, March 13th were given a dividend of $0.61 per share. The ex-dividend date of this dividend was Tuesday, March 12th. This is an increase from Texas Roadhouse's previous quarterly dividend of $0.55. This represents a $2.44 dividend on an annualized basis and a yield of 1.49%. Texas Roadhouse's dividend payout ratio (DPR) is 53.86%.

Wall Street Analysts Forecast Growth

TXRH has been the topic of a number of research analyst reports. Morgan Stanley increased their price objective on shares of Texas Roadhouse from $145.00 to $155.00 and gave the stock an "equal weight" rating in a report on Friday. Benchmark assumed coverage on shares of Texas Roadhouse in a report on Wednesday, April 10th. They set a "hold" rating on the stock. BTIG Research increased their target price on shares of Texas Roadhouse from $155.00 to $175.00 and gave the stock a "buy" rating in a report on Friday. UBS Group raised their price objective on Texas Roadhouse from $145.00 to $155.00 and gave the company a "buy" rating in a research report on Friday, February 16th. Finally, Wedbush raised their price target on shares of Texas Roadhouse from $170.00 to $180.00 and gave the stock an "outperform" rating in a research report on Friday. Twelve investment analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus target price of $151.30.

Insider Activity

In other news, President Regina A. Tobin sold 3,064 shares of the company's stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $150.07, for a total value of $459,814.48. Following the transaction, the president now owns 15,261 shares of the company's stock, valued at $2,290,218.27. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. In other news, President Regina A. Tobin sold 3,064 shares of the firm's stock in a transaction on Tuesday, March 5th. The shares were sold at an average price of $150.07, for a total transaction of $459,814.48. Following the sale, the president now owns 15,261 shares in the company, valued at approximately $2,290,218.27. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Christopher C. Colson sold 405 shares of the firm's stock in a transaction dated Friday, February 23rd. The shares were sold at an average price of $149.05, for a total value of $60,365.25. Following the transaction, the insider now directly owns 8,500 shares in the company, valued at $1,266,925. The disclosure for this sale can be found here. Insiders have sold a total of 12,382 shares of company stock valued at $1,843,145 over the last quarter. Company insiders own 0.50% of the company's stock.

Institutional Investors Weigh In On Texas Roadhouse

Several institutional investors have recently bought and sold shares of TXRH. AE Wealth Management LLC boosted its position in Texas Roadhouse by 25.4% during the 3rd quarter. AE Wealth Management LLC now owns 3,544 shares of the restaurant operator's stock valued at $341,000 after buying an additional 718 shares during the period. Commonwealth Equity Services LLC increased its holdings in Texas Roadhouse by 3.2% during the 3rd quarter. Commonwealth Equity Services LLC now owns 6,556 shares of the restaurant operator's stock valued at $630,000 after purchasing an additional 203 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Texas Roadhouse by 15.7% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 14,607 shares of the restaurant operator's stock valued at $1,404,000 after purchasing an additional 1,977 shares during the period. Advisor Partners II LLC purchased a new stake in Texas Roadhouse in the 3rd quarter worth approximately $213,000. Finally, Park Avenue Securities LLC bought a new stake in shares of Texas Roadhouse in the 3rd quarter worth approximately $474,000. 94.82% of the stock is currently owned by hedge funds and other institutional investors.

Texas Roadhouse Price Performance

The stock has a market capitalization of $10.93 billion, a PE ratio of 36.12, a PEG ratio of 1.70 and a beta of 1.00. The company has a 50 day moving average price of $152.50 and a 200-day moving average price of $129.54.

About Texas Roadhouse

Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.