Texas Roadhouse (NASDAQ:TXRH) Receives "Buy" Rating from Guggenheim

Key Points

• Texas Roadhouse received a "buy" rating from Guggenheim with a price target of $210.00, indicating a potential upside of 27.16% from its current stock price.
• The company's most recent earnings report showed $1.86 earnings per share, missing expectations by $0.09, despite a revenue of $1.51 billion, which was slightly above analysts’ forecasts.
• Insider trading activity includes sales by key executives, indicating a decrease in their share positions, with over 8,300 shares sold recently valued at approximately $1.44 million.

Guggenheim reissued their buy rating on shares of Texas Roadhouse (NASDAQ:TXRH - Free Report) in a report published on Tuesday,Benzinga reports. The brokerage currently has a $210.00 price objective on the restaurant operator's stock.

A number of other research analysts have also commented on TXRH. Citigroup upped their price target on Texas Roadhouse from $180.00 to $197.00 and gave the company a "neutral" rating in a research report on Tuesday, July 29th. Bank of America increased their target price on Texas Roadhouse from $203.00 to $219.00 and gave the stock a "buy" rating in a research report on Friday, July 18th. UBS Group increased their target price on Texas Roadhouse from $200.00 to $220.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Truist Financial set a $212.00 target price on Texas Roadhouse and gave the stock a "buy" rating in a research report on Wednesday, July 2nd. Finally, Melius began coverage on Texas Roadhouse in a research report on Monday, July 14th. They issued a "buy" rating and a $235.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and eleven have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $197.35.

Texas Roadhouse Price Performance

TXRH traded down $1.54 during midday trading on Tuesday, reaching $158.24. 2,096,979 shares of the company's stock traded hands, compared to its average volume of 1,054,516. The firm has a fifty day moving average of $176.14 and a two-hundred day moving average of $177.88. The stock has a market capitalization of $10.52 billion, a price-to-earnings ratio of 24.16, a P/E/G ratio of 2.18 and a beta of 0.84. Texas Roadhouse has a 52 week low of $148.73 and a 52 week high of $206.04.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The restaurant operator reported $1.86 EPS for the quarter, missing analysts' consensus estimates of $1.95 by ($0.09). The business had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.50 billion. Texas Roadhouse had a net margin of 7.72% and a return on equity of 31.52%. The company's revenue for the quarter was up 12.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.79 EPS. Sell-side analysts forecast that Texas Roadhouse will post 7.23 EPS for the current year.

Texas Roadhouse Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 2nd will be paid a $0.68 dividend. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.7%. The ex-dividend date of this dividend is Tuesday, September 2nd. Texas Roadhouse's dividend payout ratio is currently 41.53%.

Insider Transactions at Texas Roadhouse

In other news, Director Gregory N. Moore sold 3,000 shares of the stock in a transaction on Monday, August 18th. The stock was sold at an average price of $173.06, for a total value of $519,180.00. Following the sale, the director directly owned 34,550 shares of the company's stock, valued at approximately $5,979,223. This represents a 7.99% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Hernan E. Mujica sold 2,189 shares of the stock in a transaction on Thursday, August 21st. The stock was 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 in the company, valued at approximately $3,026,137.20. This represents a 11.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 8,342 shares of company stock valued at $1,443,704. Insiders own 0.50% of the company's stock.

Institutional Trading of Texas Roadhouse

A number of institutional investors and hedge funds have recently modified their holdings of TXRH. Alliancebernstein L.P. increased its holdings in shares of Texas Roadhouse by 528.2% in the 2nd quarter. Alliancebernstein L.P. now owns 3,172,738 shares of the restaurant operator's stock worth $594,603,000 after purchasing an additional 2,667,716 shares in the last quarter. Axiom Investors LLC DE increased its holdings in shares of Texas Roadhouse by 3,696.7% in the 1st quarter. Axiom Investors LLC DE now owns 2,173,807 shares of the restaurant operator's stock worth $362,221,000 after purchasing an additional 2,116,552 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in shares of Texas Roadhouse by 209.3% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 1,609,608 shares of the restaurant operator's stock worth $268,209,000 after purchasing an additional 1,089,256 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Texas Roadhouse by 85.7% in the 2nd quarter. AQR Capital Management LLC now owns 2,343,000 shares of the restaurant operator's stock worth $439,102,000 after purchasing an additional 1,081,413 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Texas Roadhouse in the 2nd quarter worth $159,007,000. Institutional investors own 94.82% of the company's stock.

Texas Roadhouse Company Profile

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.