Texas Roadhouse (NASDAQ:TXRH) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Texas Roadhouse (NASDAQ:TXRH) from a "hold" to a "sell" in a research note issued Saturday.
• Despite the downgrade, the analyst consensus remains a "Moderate Buy" with a consensus price target of $195.14 and mixed analyst views (one Strong Buy, 10 Buys, 13 Holds, targets roughly $186–$215).
• Texas Roadhouse recently missed quarterly estimates (EPS $1.28 vs. $1.53 expected; revenue slightly below consensus) and insiders sold about 12,988 shares (~$2.22M) over the past three months.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Several other research firms have also recently weighed in on TXRH. Morgan Stanley set a $199.00 price target on shares of Texas Roadhouse in a report on Tuesday, April 21st. Truist Financial lowered their price target on shares of Texas Roadhouse from $188.00 to $186.00 and set a "hold" rating on the stock in a report on Friday, February 20th. TD Cowen began coverage on shares of Texas Roadhouse in a research report on Tuesday, January 20th. They set a "buy" rating and a $215.00 target price on the stock. Barclays set a $188.00 target price on shares of Texas Roadhouse in a research report on Friday, February 20th. Finally, Wells Fargo & Company decreased their target price on shares of Texas Roadhouse from $220.00 to $200.00 and set an "overweight" rating on the stock in a research report on Thursday, April 16th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and thirteen have issued a Hold rating to the stock. According to MarketBeat.com, Texas Roadhouse currently has a consensus rating of "Moderate Buy" and a consensus price target of $195.14.

Texas Roadhouse Stock Down 1.7%

Texas Roadhouse stock opened at $158.29 on Friday. The stock has a market cap of $10.44 billion, a P/E ratio of 25.99, a P/E/G ratio of 1.84 and a beta of 0.77. Texas Roadhouse has a twelve month low of $156.00 and a twelve month high of $199.99. The company's 50-day moving average price is $168.05 and its two-hundred day moving average price is $172.95.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released 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 company 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%. The firm's revenue was up 3.1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.73 earnings per share. Equities analysts anticipate that Texas Roadhouse will post 6.34 earnings per share for the current fiscal year.

Insider Buying and Selling at Texas Roadhouse

In related news, Director Hugh J. Carroll sold 988 shares of the stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $170.96, for a total transaction of $168,908.48. Following the sale, the director owned 866 shares in the company, valued at approximately $148,051.36. This trade represents a 53.29% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Donna E. Epps sold 850 shares of the stock in a transaction that occurred on Friday, March 6th. The stock was sold at an average price of $172.45, for a total transaction of $146,582.50. Following the sale, the director owned 4,892 shares in the company, valued at $843,625.40. This represents a 14.80% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 12,988 shares of company stock worth $2,218,144 in the last three months. Company insiders own 0.50% of the company's stock.

Institutional Trading of Texas Roadhouse

Several large investors have recently made changes to their positions in the company. Alliancebernstein L.P. boosted its position in shares of Texas Roadhouse by 14.7% during the 3rd quarter. Alliancebernstein L.P. now owns 3,638,914 shares of the restaurant operator's stock worth $604,606,000 after acquiring an additional 466,176 shares in the last quarter. AQR Capital Management LLC boosted its position in shares of Texas Roadhouse by 27.4% during the 4th quarter. AQR Capital Management LLC now owns 2,674,102 shares of the restaurant operator's stock worth $443,901,000 after acquiring an additional 575,685 shares in the last quarter. Capital World Investors boosted its position in shares of Texas Roadhouse by 13.4% during the 4th quarter. Capital World Investors now owns 2,537,290 shares of the restaurant operator's stock worth $421,190,000 after acquiring an additional 300,405 shares in the last quarter. UBS Group AG boosted its position in shares of Texas Roadhouse by 60.4% during the 4th quarter. UBS Group AG now owns 1,387,454 shares of the restaurant operator's stock worth $230,317,000 after acquiring an additional 522,509 shares in the last quarter. Finally, Geode Capital Management LLC boosted its position in shares of Texas Roadhouse by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 1,367,120 shares of the restaurant operator's stock worth $226,984,000 after acquiring an additional 24,834 shares in the last quarter. Institutional investors and hedge funds own 94.82% of the company's stock.

About Texas Roadhouse

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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