Brinker International (NYSE:EAT) Shares Down 6.8% - Should You Sell?

Key Points

• Brinker International shares fell 6.8% to about $188.33 in light trading, below the 50-day moving average of $220.14 but above the 200-day average of $177.44.
• Analysts remain broadly optimistic, with a “Moderate Buy” consensus, 24 total Buy or Strong Buy ratings, and an average price target of $243.38; individual targets range as high as $325.
• The latest quarter produced $1.54 billion in revenue, up 5.1% year over year, but EPS of $3.07 narrowly missed estimates. Insiders have sold about 173,694 shares worth $41.6 million over the past 90 days.

Brinker International, Inc. (NYSE:EAT - Get Free Report) shares fell 6.8% during mid-day trading on Monday. The stock traded as low as $191.15 and last traded at $188.3260. Approximately 99,933 shares changed hands during trading, a decline of 92% from the average session volume of 1,180,729 shares. The stock had previously closed at $202.00.

Analysts Set New Price Targets

A number of research analysts recently commented on EAT shares. Northcoast Research raised Brinker International from a "neutral" rating to a "buy" rating and set a $275.00 price target for the company in a research note on Tuesday, September 22nd. Weiss Ratings upgraded shares of Brinker International from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 11th. UBS Group raised their target price on shares of Brinker International from $190.00 to $260.00 and gave the company a "buy" rating in a report on Monday, August 10th. Robert W. Baird started coverage on shares of Brinker International in a research report on Monday, August 24th. They issued an "outperform" rating and a $325.00 target price for the company. Finally, Freedom Broker raised shares of Brinker International to a "strong-buy" rating in a report on Friday, September 18th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $243.38.

Brinker International Stock Down 3.6%

The company has a debt-to-equity ratio of 0.95, a current ratio of 0.45 and a quick ratio of 0.40. The stock has a market capitalization of $8.13 billion, a P/E ratio of 17.88, a P/E/G ratio of 1.05 and a beta of 1.25. The firm has a 50-day simple moving average of $220.14 and a 200 day simple moving average of $177.44.

Brinker International (NYSE:EAT - Get Free Report) last announced its quarterly earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing analysts' consensus estimates of $3.09 by ($0.02). Brinker International had a net margin of 8.39% and a return on equity of 122.35%. The firm had revenue of $1.54 billion for the quarter, compared to analyst estimates of $1.53 billion. During the same period in the previous year, the business posted $2.30 earnings per share. The business's revenue for the quarter was up 5.1% compared to the same quarter last year. Brinker International has set its FY 2027 guidance at 12.600-13.400 EPS. On average, equities research analysts forecast that Brinker International, Inc. will post 13.15 EPS for the current year.

Insider Activity

In other Brinker International news, Director James Katzman sold 650 shares of the company's stock in a transaction that occurred on Wednesday, September 9th. The shares were sold at an average price of $220.09, for a total value of $143,058.50. Following the completion of the transaction, the director directly owned 25,094 shares in the company, valued at approximately $5,522,938.46. This represents a 2.52% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Daniel Fuller sold 1,909 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $253.54, for a total transaction of $484,007.86. Following the completion of the transaction, the senior vice president owned 30,177 shares of the company's stock, valued at approximately $7,651,076.58. This trade represents a 5.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 173,694 shares of company stock worth $41,568,690. Company insiders own 1.18% of the company's stock.

Institutional Trading of Brinker International

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. lifted its holdings in Brinker International by 2.2% during the 2nd quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock worth $1,130,552,000 after buying an additional 145,525 shares during the period. State Street Corp increased its stake in shares of Brinker International by 3.5% in the second quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator's stock valued at $293,786,000 after buying an additional 59,120 shares during the period. Arrowstreet Capital Limited Partnership increased its stake in shares of Brinker International by 0.8% in the first quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator's stock valued at $167,128,000 after buying an additional 9,692 shares during the period. Balyasny Asset Management L.P. increased its stake in shares of Brinker International by 667.5% in the fourth quarter. Balyasny Asset Management L.P. now owns 1,142,263 shares of the restaurant operator's stock valued at $163,938,000 after buying an additional 993,435 shares during the period. Finally, Capital World Investors raised its position in shares of Brinker International by 96.5% during the fourth quarter. Capital World Investors now owns 1,137,863 shares of the restaurant operator's stock worth $163,306,000 after acquiring an additional 558,799 shares during the last quarter.

Brinker International Company Profile

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining establishments. Its portfolio is led by Chili's Grill & Bar, a full-service restaurant brand known for burgers, steaks, fajitas, ribs and other American-style menu items, and Maggiano's Little Italy, which specializes in Italian-American cuisine and operates both restaurants and catering services.

Brinker also developed It's Just Wings, a virtual restaurant brand offering chicken wings, fries and related items through delivery and takeout.

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