Brinker International (NYSE:EAT) Stock Price Down 4.1% - Time to Sell?

Key Points

• Brinker International shares fell about 4.1% to roughly $201.93, with trading volume 65% below the average session volume.
• Analysts remain broadly positive, with 16 Buy and seven Hold ratings, a “Moderate Buy” consensus, and an average price target of $243.30.
• The company slightly missed quarterly EPS estimates despite revenue rising 5.1% year over year, while insiders sold approximately $41.6 million of stock over the past 90 days.

Brinker International, Inc. (NYSE:EAT - Get Free Report) shares traded down 4.1% during mid-day trading on Thursday . The company traded as low as $201.27 and last traded at $201.9310. 403,812 shares changed hands during mid-day trading, a decline of 65% from the average session volume of 1,142,580 shares. The stock had previously closed at $210.61.

Wall Street Analysts Forecast Growth

EAT has been the topic of several research reports. Robert W. Baird initiated coverage on shares of Brinker International in a report on Monday, August 24th. They set an "outperform" rating and a $325.00 price objective on the stock. DA Davidson reduced their price objective on shares of Brinker International from $260.00 to $240.00 and set a "neutral" rating for the company in a report on Friday, September 11th. UBS Group boosted their target price on shares of Brinker International from $190.00 to $260.00 and gave the stock a "buy" rating in a research report on Monday, August 10th. TD Cowen upped their target price on shares of Brinker International from $210.00 to $270.00 and gave the stock a "buy" rating in a report on Wednesday, August 12th. Finally, Bank of America raised their price target on shares of Brinker International from $224.00 to $310.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Sixteen analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $243.30.

Brinker International Stock Down 4.2%

The company has a current ratio of 0.45, a quick ratio of 0.40 and a debt-to-equity ratio of 0.95. The stock has a market capitalization of $8.43 billion, a PE ratio of 18.53, a P/E/G ratio of 1.07 and a beta of 1.25. The stock's fifty day simple moving average is $216.56 and its 200-day simple moving average is $172.31.

Brinker International (NYSE:EAT - Get Free Report) last announced its earnings results on Wednesday, August 12th. The restaurant operator reported $3.07 EPS for the quarter, missing the consensus estimate 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 during the quarter, compared to analysts' expectations of $1.53 billion. During the same quarter in the prior year, the company earned $2.30 EPS. The business's revenue for the quarter was up 5.1% on a year-over-year basis. 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 13.01 EPS for the current fiscal year.

Insider Activity

In other news, CEO Kevin Hochman sold 40,000 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $243.15, for a total value of $9,726,000.00. Following the transaction, the chief executive officer owned 144,090 shares in the company, valued at $35,035,483.50. The trade was a 21.73% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP James Butler sold 10,000 shares of the business's stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $240.37, for a total value 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. The trade was a 52.45% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 173,694 shares of company stock worth $41,568,690. Corporate insiders own 1.43% of the company's stock.

Institutional Investors Weigh In On Brinker International

Several large investors have recently made changes to their positions in the business. The Manufacturers Life Insurance Company boosted its holdings in shares of Brinker International by 13.1% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 21,550 shares of the restaurant operator's stock worth $3,620,000 after buying an additional 2,489 shares during the last quarter. Tidal Investments LLC increased its holdings in Brinker International by 24.1% during the second quarter. Tidal Investments LLC now owns 8,897 shares of the restaurant operator's stock worth $1,495,000 after buying an additional 1,726 shares during the last quarter. WINTON GROUP Ltd increased its holdings in Brinker International by 318.2% during the second quarter. WINTON GROUP Ltd now owns 28,047 shares of the restaurant operator's stock worth $4,712,000 after buying an additional 21,340 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in Brinker International in the second quarter worth about $145,000. Finally, Empirical Finance LLC bought a new stake in Brinker International in the second quarter worth about $687,000.

About Brinker International

Brinker International, Inc is a Dallas-based restaurant company that owns, operates and franchises casual dining restaurants. Its portfolio includes Chili's Grill & Bar, a full-service restaurant brand known for burgers, fajitas, ribs, steaks, Tex-Mex dishes and a broad beverage menu, and Maggiano's Little Italy, which specializes in Italian-American cuisine and family-style dining.

Chili's restaurants serve a wide range of lunch and dinner offerings in a casual, bar-and-grill setting, while Maggiano's locations offer traditional Italian dishes, including pasta, chicken, seafood and desserts.

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