Texas Roadhouse (NASDAQ:TXRH) Shares Gap Down on Disappointing Earnings

Key Points

• Texas Roadhouse gapped down in trading after reporting earnings of $1.86 per share, missing analysts' expectations of $1.95 by $0.09, although revenue of $1.51 billion exceeded estimates.
• Several analysts have adjusted their price targets for TXRH; Stephens raised it to $190.00, while Truist Financial set a target of $212.00, rating the stock as a "buy."
• Insider transactions included significant sales, with Director Gregory N. Moore selling 1,000 shares and Director Donna E. Epps selling 800 shares, indicating a decrease in their ownership percentage.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report) gapped down prior to trading on Friday following a dissappointing earnings announcement. The stock had previously closed at $185.01, but opened at $173.94. Texas Roadhouse shares last traded at $175.79, with a volume of 681,891 shares.

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 net margin of 7.89% and a return on equity of 32.33%. The business had revenue of $1.51 billion during the quarter, compared to analyst estimates of $1.50 billion. During the same period in the previous year, the business posted $1.79 EPS. The business's revenue for the quarter was up 12.7% compared to the same quarter last year.

Wall Street Analysts Forecast Growth

TXRH has been the topic of several recent analyst reports. Stephens lifted their target price on shares of Texas Roadhouse from $184.00 to $190.00 and gave the stock an "equal weight" rating in a research report on Friday. Stifel Nicolaus upped their price target on shares of Texas Roadhouse from $180.00 to $188.00 and gave the company a "hold" rating in a research note on Friday, July 25th. Truist Financial set a $212.00 price target on shares of Texas Roadhouse and gave the stock a "buy" rating in a report on Wednesday, July 2nd. The Goldman Sachs Group boosted their target price on Texas Roadhouse from $184.00 to $205.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 4th. Finally, Morgan Stanley raised their price objective on shares of Texas Roadhouse from $200.00 to $205.00 and gave the company an "overweight" rating in a research report on Monday, July 14th. Ten analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $197.85.

Insider Activity at Texas Roadhouse

In related news, Director Gregory N. Moore sold 1,000 shares of the company's stock in a transaction on Monday, May 12th. The stock was sold at an average price of $187.62, for a total transaction of $187,620.00. Following the completion of the sale, the director owned 38,050 shares in the company, valued at approximately $7,138,941. This represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Donna E. Epps sold 800 shares of the stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $186.52, for a total transaction of $149,216.00. Following the completion of the transaction, the director owned 4,632 shares in the company, valued at $863,960.64. The trade was a 14.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. Brooklyn Investment Group increased its stake in Texas Roadhouse by 478.6% in the 1st quarter. Brooklyn Investment Group now owns 162 shares of the restaurant operator's stock worth $27,000 after acquiring an additional 134 shares during the last quarter. Bogart Wealth LLC purchased a new position in shares of Texas Roadhouse during the first quarter valued at $33,000. Coppell Advisory Solutions LLC raised its holdings in shares of Texas Roadhouse by 56.8% in the fourth quarter. Coppell Advisory Solutions LLC now owns 196 shares of the restaurant operator's stock valued at $35,000 after acquiring an additional 71 shares in the last quarter. Ameritas Advisory Services LLC purchased a new stake in Texas Roadhouse in the second quarter worth about $53,000. Finally, WPG Advisers LLC purchased a new stake in Texas Roadhouse in the first quarter worth about $59,000. Institutional investors own 94.82% of the company's stock.

Texas Roadhouse Stock Performance

The company has a market capitalization of $11.57 billion, a P/E ratio of 26.85, a PEG ratio of 2.60 and a beta of 0.86. The company's fifty day simple moving average is $188.05 and its 200-day simple moving average is $179.30.

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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