Texas Roadhouse (NASDAQ:TXRH) Hits New 12-Month High - Still a Buy?

Key Points

• Texas Roadhouse shares hit a new 52-week high of $212.17 and last traded near $212.69, well above their 50-day and 200-day moving averages.
• Analyst sentiment is mixed: Mizuho raised its price target to $230 with an “outperform” rating, while the broader consensus remains “Hold” with an average target of $196.40.
• The company posted quarterly EPS of $1.87, beating estimates, while revenue rose 10.5% year over year. It also pays a $0.75 quarterly dividend, equivalent to a 1.4% yield.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) shares reached a new 52-week high on Monday . The company traded as high as $212.17 and last traded at $212.6850, with a volume of 52673 shares. The stock had previously closed at $205.44.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on the stock. Mizuho lifted their price target on shares of Texas Roadhouse from $190.00 to $230.00 and gave the stock an "outperform" rating in a research report on Friday. BMO Capital Markets boosted their target price on shares of Texas Roadhouse from $165.00 to $180.00 and gave the stock a "market perform" rating in a research report on Thursday, May 21st. Barclays cut their price objective on Texas Roadhouse from $188.00 to $175.00 and set an "equal weight" rating on the stock in a research note on Friday, May 8th. TD Cowen upped their price target on shares of Texas Roadhouse from $192.00 to $205.00 and gave the company a "buy" rating in a report on Wednesday, May 27th. Finally, Guggenheim reaffirmed a "buy" rating and set a $210.00 target price on shares of Texas Roadhouse in a research report on Monday, May 18th. Ten research analysts have rated the stock with a Buy rating and thirteen have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $196.40.

Texas Roadhouse Price Performance

The stock has a fifty day moving average of $184.71 and a 200-day moving average of $178.21. The firm has a market capitalization of $13.88 billion, a P/E ratio of 33.74, a PEG ratio of 2.27 and a beta of 0.79. The company has a quick ratio of 0.40, a current ratio of 0.46 and a debt-to-equity ratio of 0.03.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last announced its earnings results on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.80 by $0.07. The company had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.64 billion. Texas Roadhouse had a net margin of 6.85% and a return on equity of 27.86%. The company's revenue was up 10.5% on a year-over-year basis. During the same period in the previous year, the firm posted $1.70 earnings per share. Equities analysts predict that Texas Roadhouse, Inc. will post 6.45 EPS for the current fiscal year.

Texas Roadhouse Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 2nd were paid a $0.75 dividend. This represents a $3.00 annualized dividend and a dividend yield of 1.4%. The ex-dividend date of this dividend was Tuesday, June 2nd. Texas Roadhouse's dividend payout ratio (DPR) is 47.92%.

Insider Buying and Selling at Texas Roadhouse

In related news, Director Gregory N. Moore sold 1,250 shares of the firm's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $178.14, for a total value of $222,675.00. Following the transaction, the director owned 30,900 shares in the company, valued at $5,504,526. This trade represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Curtis Warfield sold 2,640 shares of the business's stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $183.05, for a total value of $483,252.00. Following the sale, the director directly owned 5,361 shares of the company's stock, valued at $981,331.05. This represents a 33.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 6,154 shares of company stock valued at $1,115,864 over the last ninety days. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Texas Roadhouse

Several institutional investors have recently modified their holdings of the stock. Bank & Trust Co boosted its holdings in shares of Texas Roadhouse by 68.1% in the second quarter. Bank & Trust Co now owns 306 shares of the restaurant operator's stock valued at $59,000 after buying an additional 124 shares during the period. Ausbil Investment Management Ltd acquired a new position in Texas Roadhouse during the second quarter worth $1,537,000. Red Spruce Capital LLC raised its position in Texas Roadhouse by 0.8% during the second quarter. Red Spruce Capital LLC now owns 22,192 shares of the restaurant operator's stock worth $4,288,000 after acquiring an additional 180 shares in the last quarter. GAMMA Investing LLC raised its position in Texas Roadhouse by 16.6% during the second quarter. GAMMA Investing LLC now owns 2,469 shares of the restaurant operator's stock worth $477,000 after acquiring an additional 351 shares in the last quarter. Finally, Harbor Investment Advisory LLC lifted its stake in Texas Roadhouse by 2.5% in the second quarter. Harbor Investment Advisory LLC now owns 14,563 shares of the restaurant operator's stock valued at $2,814,000 after acquiring an additional 349 shares during the last quarter. 94.82% of the stock is currently owned by institutional investors and hedge funds.

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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