Red Robin Gourmet Burgers (NASDAQ:RRGB) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Red Robin Gourmet Burgers from a "hold" rating to a "strong-buy" rating, reflecting increased positive sentiment about the company's future.
• Despite the upgrade, the stock has seen a slight decline of 0.6% recently, trading at approximately $6.75 with a twelve-month low of $2.50.
• Red Robin reported better-than-expected quarterly earnings, posting $0.26 EPS which exceeded analyst estimates, further supporting the positive outlook on the stock.

Red Robin Gourmet Burgers (NASDAQ:RRGB - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Wednesday,Zacks.com reports.

Several other research analysts have also recently issued reports on RRGB. Benchmark reaffirmed a "buy" rating and set a $12.00 target price on shares of Red Robin Gourmet Burgers in a research report on Wednesday, July 16th. Weiss Ratings restated a "sell (d-)" rating on shares of Red Robin Gourmet Burgers in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Red Robin Gourmet Burgers presently has a consensus rating of "Moderate Buy" and an average target price of $11.00.

Red Robin Gourmet Burgers Stock Down 0.6%

NASDAQ:RRGB opened at $6.75 on Wednesday. The stock's 50-day simple moving average is $6.48 and its 200 day simple moving average is $5.15. Red Robin Gourmet Burgers has a twelve month low of $2.50 and a twelve month high of $7.89. The firm has a market capitalization of $120.89 million, a PE ratio of -1.99 and a beta of 2.57.

Red Robin Gourmet Burgers (NASDAQ:RRGB - Get Free Report) last issued its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.26 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.25) by $0.51. The company had revenue of $283.70 million for the quarter, compared to the consensus estimate of $279.17 million. Red Robin Gourmet Burgers has set its FY 2025 guidance at EPS. On average, analysts anticipate that Red Robin Gourmet Burgers will post -2.94 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, Director Christopher Ross Martin acquired 34,649 shares of Red Robin Gourmet Burgers stock in a transaction that occurred on Friday, August 22nd. The stock was bought at an average price of $6.29 per share, with a total value of $217,942.21. Following the transaction, the director directly owned 1,667,906 shares in the company, valued at approximately $10,491,128.74. This represents a 2.12% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. 2.64% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Red Robin Gourmet Burgers

Institutional investors and hedge funds have recently bought and sold shares of the stock. Bandera Partners LLC grew its stake in Red Robin Gourmet Burgers by 270.2% in the first quarter. Bandera Partners LLC now owns 850,000 shares of the restaurant operator's stock worth $3,026,000 after purchasing an additional 620,402 shares in the last quarter. JPMorgan Chase & Co. raised its stake in Red Robin Gourmet Burgers by 5,671.8% in the 2nd quarter. JPMorgan Chase & Co. now owns 133,041 shares of the restaurant operator's stock worth $770,000 after acquiring an additional 130,736 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Red Robin Gourmet Burgers in the 2nd quarter worth $674,000. Pacific Ridge Capital Partners LLC raised its stake in shares of Red Robin Gourmet Burgers by 7.4% during the 1st quarter. Pacific Ridge Capital Partners LLC now owns 1,148,813 shares of the restaurant operator's stock valued at $4,090,000 after buying an additional 79,181 shares during the last quarter. Finally, Trexquant Investment LP purchased a new position in shares of Red Robin Gourmet Burgers during the 1st quarter valued at about $209,000. 84.04% of the stock is currently owned by hedge funds and other institutional investors.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc, together with its subsidiaries, develops, operates, and franchises casual-dining restaurants, in North America and one Canadian province. Its restaurants primarily offer burgers and pizza, appetizers, salads, soups, other entrees, desserts, wings, milkshakes, alcoholic and non-alcoholic specialty drinks, cocktails, wine, and beers.

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