Texas Roadhouse (NASDAQ:TXRH) Earns Buy (B) Rating from Weiss Ratings

Key Points

• Texas Roadhouse has received a "strong buy" rating from Weiss Ratings, while other analysts have mixed views, with Zacks Research downgrading it to a "strong sell".
• The company reported quarterly earnings of $1.86 per share, falling short of the expected $1.95, though revenue increased by 12.7% year-over-year to $1.51 billion.
• Insider transactions showed significant selling, with the President and CTO reducing their stock holdings by over 10%, raising concerns about insider confidence.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report)'s stock had its "buy (b)" rating reiterated by research analysts at Weiss Ratings in a report released on Friday,Weiss Ratings reports.

Several other equities analysts have also issued reports on the company. Zacks Research lowered Texas Roadhouse from a "hold" rating to a "strong sell" rating in a research report on Wednesday. Barclays decreased their price objective on Texas Roadhouse from $189.00 to $187.00 and set an "equal weight" rating for the company in a research report on Wednesday. The Goldman Sachs Group decreased their price objective on Texas Roadhouse from $200.00 to $180.00 and set a "neutral" rating for the company in a research report on Wednesday, October 1st. Stifel Nicolaus boosted their price objective on Texas Roadhouse from $180.00 to $188.00 and gave the company a "hold" rating in a research report on Friday, July 25th. Finally, Citigroup boosted their price objective on Texas Roadhouse from $180.00 to $197.00 and gave the company a "neutral" rating in a research report on Tuesday, July 29th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating, eleven have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $195.40.

Texas Roadhouse Price Performance

Shares of Texas Roadhouse stock traded down $0.85 during trading on Friday, hitting $175.54. 904,833 shares of the company were exchanged, compared to its average volume of 1,090,166. The firm has a market capitalization of $11.66 billion, a P/E ratio of 26.80, a price-to-earnings-growth ratio of 2.61 and a beta of 0.82. Texas Roadhouse has a 1-year low of $148.73 and a 1-year high of $206.04. The firm's fifty day moving average price is $169.29 and its 200 day moving average price is $177.43.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last posted its earnings results on Thursday, August 7th. The restaurant operator reported $1.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.09). Texas Roadhouse had a return on equity of 31.52% and a net margin of 7.72%.The company had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same quarter in the previous year, the firm posted $1.79 earnings per share. Texas Roadhouse's quarterly revenue was up 12.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Texas Roadhouse will post 7.23 earnings per share for the current year.

Insider Buying and Selling

In other news, President Regina A. Tobin sold 3,153 shares of the stock in a transaction that occurred on Monday, August 18th. The stock was sold at an average price of $173.53, for a total value of $547,140.09. Following the completion of the sale, the president owned 15,261 shares of the company's stock, valued at approximately $2,648,241.33. This represents a 17.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CTO Hernan E. Mujica sold 2,189 shares of the stock in a transaction that occurred on Thursday, August 21st. The shares were sold at an average price of $172.40, for a total value of $377,383.60. Following the completion of the sale, the chief technology officer directly owned 17,553 shares of the company's stock, valued at approximately $3,026,137.20. The trade was a 11.09% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 8,342 shares of company stock worth $1,443,704. 0.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Texas Roadhouse

Large investors have recently made changes to their positions in the stock. Caldwell Trust Co acquired a new stake in shares of Texas Roadhouse in the 2nd quarter valued at approximately $28,000. Brooklyn Investment Group boosted its holdings in shares of Texas Roadhouse by 478.6% in the 1st quarter. Brooklyn Investment Group now owns 162 shares of the restaurant operator's stock valued at $27,000 after buying an additional 134 shares during the last quarter. Bogart Wealth LLC acquired a new stake in shares of Texas Roadhouse in the 1st quarter valued at approximately $33,000. Ameritas Advisory Services LLC acquired a new stake in shares of Texas Roadhouse in the 2nd quarter valued at approximately $53,000. Finally, Salomon & Ludwin LLC boosted its holdings in shares of Texas Roadhouse by 37.2% in the 3rd quarter. Salomon & Ludwin LLC now owns 299 shares of the restaurant operator's stock valued at $50,000 after buying an additional 81 shares during the last quarter. Institutional investors and hedge funds own 94.82% of the company's stock.

About Texas Roadhouse

Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. It also operates and franchises restaurants under the Texas Roadhouse, Bubba's 33, and Jaggers names in 49 states and ten internationally. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.

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