Brinker International (NYSE:EAT) Shares Down 4.1% After Analyst Downgrade

Key Points

• Brinker International shares fell 4.1% to about $187.43 after Wells Fargo cut its price target from $280 to $270, while maintaining an overweight rating.
• Analyst sentiment remains positive overall, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $248.29.
• Recent insider selling totaled 173,694 shares worth approximately $41.6 million over 90 days, while the company’s latest quarterly revenue rose 5.1% year over year despite a slight EPS miss.

Brinker International, Inc. (NYSE:EAT - Get Free Report)'s stock price fell 4.1% during mid-day trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $280.00 to $270.00. Wells Fargo & Company currently has an overweight rating on the stock. Brinker International traded as low as $189.23 and last traded at $187.4260. Approximately 44,668 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 1,182,228 shares. The stock had previously closed at $195.34.

Several other equities research analysts also recently weighed in on the company. UBS Group upped their price target on Brinker International from $190.00 to $260.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Weiss Ratings upgraded shares of Brinker International from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 11th. DA Davidson dropped their price objective on shares of Brinker International from $240.00 to $210.00 and set a "neutral" rating on the stock in a research report on Monday, September 21st. TD Cowen reduced their price objective on shares of Brinker International from $270.00 to $250.00 and set a "buy" rating on the stock in a report on Friday, October 16th. Finally, Northcoast Research upgraded shares of Brinker International from a "neutral" rating to a "buy" rating and set a $275.00 price objective on the stock in a report on Tuesday, September 22nd. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $248.29.

Insider Activity

In related news, Director Joseph DePinto sold 25,000 shares of the company's stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $230.39, for a total value of $5,759,750.00. Following the completion of the transaction, the director directly owned 77,812 shares of the company's stock, valued at $17,927,106.68. This represents a 24.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP James Butler sold 10,000 shares of the stock in a transaction that occurred on Friday, August 21st. The shares were sold at an average price of $240.37, for a total transaction of $2,403,700.00. Following the completion of the transaction, the senior vice president owned 9,064 shares in the company, valued at $2,178,713.68. This represents a 52.45% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 173,694 shares of company stock valued at $41,568,690 over the last 90 days. Insiders own 1.18% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Kilter Group LLC purchased a new position in Brinker International during the 2nd quarter worth $35,000. CoreCap Advisors LLC raised its holdings in shares of Brinker International by 33,000.0% in the second quarter. CoreCap Advisors LLC now owns 331 shares of the restaurant operator's stock valued at $56,000 after buying an additional 330 shares during the last quarter. Global Retirement Partners LLC purchased a new stake in shares of Brinker International in the second quarter valued at about $71,000. Parkside Financial Bank & Trust boosted its stake in shares of Brinker International by 881.2% during the second quarter. Parkside Financial Bank & Trust now owns 471 shares of the restaurant operator's stock worth $79,000 after buying an additional 423 shares during the period. Finally, Allworth Financial LP acquired a new stake in shares of Brinker International during the second quarter worth about $80,000.

Brinker International Stock Down 3.9%

The firm has a market cap of $7.84 billion, a price-to-earnings ratio of 17.24, a P/E/G ratio of 1.03 and a beta of 1.25. The firm's 50 day moving average price is $215.41 and its two-hundred day moving average price is $181.98. The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40.

Brinker International (NYSE:EAT - Get Free Report) last issued its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.09 by ($0.02). The company had revenue of $1.54 billion during the quarter, compared to analyst estimates of $1.53 billion. Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The business's revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the firm earned $2.30 EPS. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. As a group, sell-side analysts forecast that Brinker International, Inc. will post 13.18 earnings per share for the current fiscal year.

About Brinker International

Brinker International, Inc is a casual-dining restaurant company that owns, operates and franchises restaurants in the United States and select international markets. The company is headquartered in Dallas, Texas, and serves customers through company-operated and franchised locations.

Brinker's principal brands are Chili's Grill & Bar and Maggiano's Little Italy. Chili's offers a broad menu of burgers, steaks, ribs, fajitas, Tex-Mex dishes, salads and beverages in a full-service, casual setting.

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