Texas Roadhouse (NASDAQ:TXRH) Reaches New 52-Week Low - Here's What Happened

Key Points

• Texas Roadhouse hit a new 52-week low of $155.57 on Monday (last trade ~$155.37) despite a consensus analyst target near $195.14, highlighting a large disconnect between current price and analyst expectations.
• The company reported a quarterly EPS miss of $1.28 versus $1.53 expected and revenue of $1.48B vs. $1.50B consensus, prompting mixed analyst reactions though the consensus rating remains "Moderate Buy."
• Management raised the quarterly payout to $0.75 (annualized $3.00, ~1.9% yield), while insiders have recently sold shares (12,988 shares, ~$2.22M over 90 days) even as institutional ownership sits around 94.8%.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) hit a new 52-week low during trading on Monday . The stock traded as low as $155.57 and last traded at $155.3650, with a volume of 320752 shares changing hands. The stock had previously closed at $158.29.

Analyst Ratings Changes

Several brokerages recently weighed in on TXRH. Wall Street Zen lowered shares of Texas Roadhouse from a "hold" rating to a "sell" rating in a research report on Saturday. BTIG Research reissued a "buy" rating and issued a $200.00 target price on shares of Texas Roadhouse in a research report on Friday, February 20th. Deutsche Bank Aktiengesellschaft set a $195.00 price target on shares of Texas Roadhouse in a report on Wednesday, April 15th. BMO Capital Markets reaffirmed a "market perform" rating and issued a $165.00 price objective on shares of Texas Roadhouse in a research note on Friday, February 20th. Finally, Benchmark reissued a "hold" rating on shares of Texas Roadhouse in a research report on Monday, February 23rd. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and thirteen have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $195.14.

Texas Roadhouse Stock Down 1.5%

The business has a 50-day simple moving average of $168.05 and a 200-day simple moving average of $172.98. The stock has a market cap of $10.28 billion, a P/E ratio of 25.60, a PEG ratio of 1.81 and a beta of 0.77.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results on Thursday, February 19th. The restaurant operator reported $1.28 EPS for the quarter, missing analysts' consensus estimates of $1.53 by ($0.25). The firm 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 company's revenue for the quarter was up 3.1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.73 EPS. On average, analysts predict that Texas Roadhouse, Inc. will post 6.34 earnings per share for the current fiscal year.

Texas Roadhouse Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Tuesday, March 17th were given a $0.75 dividend. This is an increase from Texas Roadhouse's previous quarterly dividend of $0.68. This represents a $3.00 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Tuesday, March 17th. Texas Roadhouse's dividend payout ratio (DPR) is 49.26%.

Insiders Place Their Bets

In other news, President Regina A. Tobin sold 4,450 shares of Texas Roadhouse stock in a transaction dated Thursday, March 19th. The stock was sold at an average price of $171.00, for a total value of $760,950.00. Following the transaction, the president directly owned 13,778 shares in the company, valued at approximately $2,356,038. The trade was a 24.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Gregory N. Moore sold 1,700 shares of the stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $171.59, for a total value of $291,703.00. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 12,988 shares of company stock valued at $2,218,144 in the last ninety days. Company insiders own 0.50% of the company's stock.

Hedge Funds Weigh In On Texas Roadhouse

Institutional investors and hedge funds have recently bought and sold shares of the stock. Oak Thistle LLC bought a new position in Texas Roadhouse during the fourth quarter valued at about $1,553,000. Capital World Investors lifted its position in shares of Texas Roadhouse by 580.2% in the 3rd quarter. Capital World Investors now owns 2,236,885 shares of the restaurant operator's stock worth $371,658,000 after acquiring an additional 1,908,033 shares during the period. Caprock Group LLC acquired a new stake in shares of Texas Roadhouse during the 3rd quarter worth approximately $1,070,000. Sequoia Financial Advisors LLC increased its position in shares of Texas Roadhouse by 101.0% during the third quarter. Sequoia Financial Advisors LLC now owns 5,377 shares of the restaurant operator's stock valued at $893,000 after purchasing an additional 2,702 shares during the period. Finally, Bfsg LLC increased its position in shares of Texas Roadhouse by 111.1% during the third quarter. Bfsg LLC now owns 29,798 shares of the restaurant operator's stock valued at $4,951,000 after purchasing an additional 15,682 shares during the period. Institutional investors own 94.82% of the company's stock.

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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