Texas Roadhouse, Inc. (NASDAQ:TXRH) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Texas Roadhouse was given an average recommendation of Moderate Buy by 24 analysts (13 hold, 10 buy, 1 strong buy) with a one‑year average target price of $195.14.
• The company missed quarterly expectations, reporting EPS of $1.28 vs. $1.53 consensus and revenue of $1.48B vs. $1.50B, though revenue rose 3.1% year‑over‑year with a 6.9% net margin and 27.88% ROE.
• Insiders sold 12,988 shares (~$2.22M) in the last quarter (insiders now own 0.50%); the firm also raised its quarterly dividend to $0.75 ($3.00 annual, ~1.9% yield).

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the twenty-four ratings firms that are currently covering the firm, MarketBeat Ratings reports. Thirteen equities research analysts have rated the stock with a hold recommendation, ten have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 1 year target price among analysts that have updated their coverage on the stock in the last year is $195.1429.

A number of research analysts recently weighed in on the stock. Sanford C. Bernstein set a $185.00 price objective on shares of Texas Roadhouse in a research note on Wednesday, January 7th. BMO Capital Markets reaffirmed a "market perform" rating and set a $165.00 price objective on shares of Texas Roadhouse in a report on Friday, February 20th. Barclays set a $188.00 price target on shares of Texas Roadhouse in a research note on Friday, February 20th. Zacks Research raised shares of Texas Roadhouse from a "strong sell" rating to a "hold" rating in a research note on Thursday, January 8th. Finally, TD Cowen initiated coverage on shares of Texas Roadhouse in a research note on Tuesday, January 20th. They set a "buy" rating and a $215.00 price objective for the company.

Insiders Place Their Bets

In other news, Director Hugh J. Carroll sold 988 shares of the company's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $170.96, for a total value of $168,908.48. Following the transaction, the director owned 866 shares in the company, valued at approximately $148,051.36. This represents a 53.29% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Gregory N. Moore sold 1,700 shares of the company's stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $171.59, for a total transaction of $291,703.00. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 12,988 shares of company stock valued at $2,218,144. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Elyxium Wealth LLC bought a new position in Texas Roadhouse during the 4th quarter valued at about $25,000. Princeton Global Asset Management LLC bought a new position in Texas Roadhouse in the 4th quarter worth about $31,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Texas Roadhouse in the 3rd quarter worth approximately $33,000. Garton & Associates Financial Advisors LLC purchased a new stake in shares of Texas Roadhouse in the 4th quarter worth approximately $34,000. Finally, Root Financial Partners LLC purchased a new stake in shares of Texas Roadhouse in the 3rd quarter worth approximately $36,000. Institutional investors own 94.82% of the company's stock.

Texas Roadhouse Stock Performance

Shares of NASDAQ TXRH opened at $158.29 on Friday. Texas Roadhouse has a fifty-two week low of $156.00 and a fifty-two week high of $199.99. The stock has a market cap of $10.44 billion, a price-to-earnings ratio of 25.99, a PEG ratio of 1.81 and a beta of 0.77. The firm's 50-day simple moving average is $168.05 and its 200 day simple moving average is $172.95.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced its quarterly earnings results on Thursday, February 19th. The restaurant operator reported $1.28 earnings per share for the quarter, missing the consensus estimate of $1.53 by ($0.25). The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.50 billion. Texas Roadhouse had a net margin of 6.90% and a return on equity of 27.88%. Texas Roadhouse's revenue was up 3.1% compared to the same quarter last year. During the same period in the previous year, the business posted $1.73 EPS. On average, sell-side analysts predict that Texas Roadhouse will post 6.34 EPS for the current year.

Texas Roadhouse Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th were issued a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a yield of 1.9%. This is a boost from Texas Roadhouse's previous quarterly dividend of $0.68. The ex-dividend date was Tuesday, March 17th. Texas Roadhouse's dividend payout ratio is currently 49.26%.

Texas Roadhouse Company Profile

Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand‐cut steaks, fall‐off‐the‐bone ribs, chicken, seafood and house specialties. Each restaurant features a Western‐themed décor, open kitchens and a signature line dance presentation of fresh, made‐from‐scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family‐friendly environment.

The concept was created in 1993 by founder Kent Taylor, who sought to combine high‐quality steaks with an approachable, community‐oriented atmosphere.

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