Brinker International (NYSE:EAT) Stock Falls 6.2% - What's Next?

Key Points

• Brinker International shares fell 6.2% to about $191, while trading volume was roughly 88% below its average.
• The company beat quarterly estimates, reporting EPS of $2.77 versus $2.45 expected and revenue of $1.48 billion, up 9.4% year over year. Analysts’ consensus rating is “Moderate Buy,” with a $249.80 average target price.
• Company insiders sold 213,694 shares worth about $50.4 million over the past three months, including sales by the CEO and a director.

Brinker International, Inc. (NYSE:EAT - Get Free Report)'s stock price dropped 6.2% on Tuesday. The company traded as low as $190.43 and last traded at $191.0010. Approximately 149,617 shares changed hands during mid-day trading, a decline of 88% from the average daily volume of 1,205,448 shares. The stock had previously closed at $203.53.

Analyst Ratings Changes

EAT has been the topic of a number of analyst reports. Citigroup increased their price objective on Brinker International from $270.00 to $277.00 and gave the company a "buy" rating in a report on Thursday, October 29th. Stephens restated an "overweight" rating and issued a $300.00 target price on shares of Brinker International in a report on Thursday, October 29th. TD Cowen boosted their target price on Brinker International from $250.00 to $270.00 and gave the stock a "buy" rating in a report on Thursday, October 29th. Weiss Ratings cut Brinker International from a "buy (b)" rating to a "buy (b-)" rating in a research report on Friday, October 30th. Finally, Morgan Stanley increased their price target on Brinker International from $260.00 to $262.00 and gave the company an "overweight" rating in a report on Thursday, October 29th. Two research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $249.80.

Brinker International Trading Down 2.7%

The company has a market capitalization of $8.22 billion, a price-to-earnings ratio of 17.47, a price-to-earnings-growth ratio of 1.11 and a beta of 1.37. The business has a fifty day moving average price of $205.63 and a 200 day moving average price of $176.01. The company has a debt-to-equity ratio of 1.13, a current ratio of 0.34 and a quick ratio of 0.29.

Brinker International (NYSE:EAT - Get Free Report) last posted its quarterly earnings results on Wednesday, October 28th. The restaurant operator reported $2.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.45 by $0.32. The company had revenue of $1.48 billion for the quarter, compared to analyst estimates of $1.46 billion. Brinker International had a net margin of 8.44% and a return on equity of 125.65%. The business's quarterly revenue was up 9.4% on a year-over-year basis. During the same period last year, the business posted $2.17 EPS. On average, equities analysts expect that Brinker International, Inc. will post 13.70 EPS for the current fiscal year.

Insider Activity at Brinker International

In related news, Director Joseph DePinto sold 25,000 shares of the company's stock in a transaction 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 in the company, valued at approximately $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, CEO Kevin Hochman sold 40,000 shares of the firm's stock in a transaction on Thursday, October 29th. The stock was sold at an average price of $220.38, for a total value of $8,815,200.00. Following the completion of the transaction, the chief executive officer directly owned 104,603 shares of the company's stock, valued at approximately $23,052,409.14. This trade represents a 27.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 213,694 shares of company stock worth $50,383,890 in the last three months. Company insiders own 1.18% of the company's stock.

Hedge Funds Weigh In On Brinker International

Hedge funds have recently made changes to their positions in the business. BlackRock Inc. boosted its position in shares of Brinker International by 2.2% during the 2nd quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator's stock valued at $1,130,552,000 after acquiring an additional 145,525 shares in the last quarter. State Street Corp lifted its stake in Brinker International by 3.5% during the second quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator's stock worth $293,786,000 after purchasing an additional 59,120 shares during the period. Arrowstreet Capital Limited Partnership lifted its stake in Brinker International by 0.8% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator's stock worth $167,128,000 after purchasing an additional 9,692 shares during the period. Freestone Grove Partners LP acquired a new stake in Brinker International during the second quarter valued at approximately $91,237,000. Finally, Wellington Management Group LLP boosted its holdings in Brinker International by 63.7% during the second quarter. Wellington Management Group LLP now owns 413,472 shares of the restaurant operator's stock valued at $69,463,000 after purchasing an additional 160,939 shares in the last quarter.

About Brinker International

Brinker International, Inc. is a casual-dining restaurant company based in Dallas, Texas. It owns, operates and franchises restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands. Chili's serves a broad menu of American and Tex-Mex-inspired dishes, including burgers, ribs and fajitas. Maggiano's specializes in Italian-American cuisine, with dishes such as pasta and other classic entrées. The company traces its roots to 1975, when founder Norman Brinker opened the first Chili's restaurant in Dallas.

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