Texas Roadhouse (NASDAQ:TXRH) Trading Up 4.4% - Should You Buy?

Key Points

• Texas Roadhouse shares rose 4.4% on Friday, trading as high as $168.31 after closing at $161.30, though volume was well below average.
• Analysts remain cautious overall: the stock currently carries a consensus “Hold” rating with an average price target of $196.36, even after some firms reiterated or adjusted their views.
• The company posted a solid quarter, with EPS of $1.87 beating estimates and revenue up 10.5% year over year, and it also announced a quarterly dividend of $0.75 per share.

Texas Roadhouse, Inc. (NASDAQ:TXRH - Get Free Report)'s stock price was up 4.4% on Friday . The company traded as high as $168.31 and last traded at $168.4450. Approximately 283,957 shares were traded during trading, a decline of 73% from the average daily volume of 1,068,805 shares. The stock had previously closed at $161.30.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on TXRH shares. Wall Street Zen raised shares of Texas Roadhouse from a "sell" rating to a "hold" rating in a research note on Sunday, May 10th. Wells Fargo & Company lowered their price target on shares of Texas Roadhouse from $220.00 to $200.00 and set an "overweight" rating on the stock in a research note on Thursday, April 16th. KeyCorp reaffirmed a "sector weight" rating on shares of Texas Roadhouse in a research note on Friday, February 20th. Benchmark reaffirmed a "hold" rating on shares of Texas Roadhouse in a research note on Monday, February 23rd. Finally, Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Texas Roadhouse in a research note on Friday, May 29th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and fourteen have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Texas Roadhouse currently has a consensus rating of "Hold" and a consensus target price of $196.36.

Texas Roadhouse Stock Up 4.9%

The firm has a market cap of $11.12 billion, a price-to-earnings ratio of 27.06, a P/E/G ratio of 1.82 and a beta of 0.79. The company has a current ratio of 0.46, a quick ratio of 0.40 and a debt-to-equity ratio of 0.03. The firm has a 50 day moving average price of $167.99 and a 200-day moving average price of $173.78.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.80 by $0.07. The business had revenue of $1.63 billion during the quarter, compared to the consensus estimate of $1.64 billion. Texas Roadhouse had a return on equity of 27.86% and a net margin of 6.85%.The business's revenue was up 10.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.70 EPS. On average, equities analysts forecast that Texas Roadhouse, Inc. will post 6.4 EPS for the current year.

Texas Roadhouse Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Tuesday, June 2nd will be paid a dividend of $0.75 per share. This represents a $3.00 annualized dividend and a dividend yield of 1.8%. The ex-dividend date of this dividend is Tuesday, June 2nd. Texas Roadhouse's payout ratio is 47.92%.

Insider Buying and Selling at Texas Roadhouse

In other news, President Regina A. Tobin sold 4,450 shares of Texas Roadhouse stock in a transaction on Thursday, March 19th. The stock was sold at an average price of $171.00, for a total transaction of $760,950.00. Following the completion of the transaction, the president owned 13,778 shares of the company's stock, valued at $2,356,038. The trade was a 24.41% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Lloyd Paul Marshall sold 1,000 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $178.34, for a total transaction of $178,340.00. Following the completion of the transaction, the insider directly owned 10,326 shares of the company's stock, valued at $1,841,538.84. The trade was a 8.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 16,166 shares of company stock worth $2,813,705. Insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in TXRH. Capital World Investors lifted its holdings in Texas Roadhouse by 580.2% in the 3rd quarter. Capital World Investors now owns 2,236,885 shares of the restaurant operator's stock valued at $371,658,000 after purchasing an additional 1,908,033 shares in the last quarter. Balyasny Asset Management L.P. purchased a new position in Texas Roadhouse in the 3rd quarter valued at about $157,310,000. Wellington Management Group LLP lifted its holdings in Texas Roadhouse by 228.4% in the 4th quarter. Wellington Management Group LLP now owns 1,329,052 shares of the restaurant operator's stock valued at $220,623,000 after purchasing an additional 924,306 shares in the last quarter. Norges Bank purchased a new position in Texas Roadhouse in the 4th quarter valued at about $145,734,000. Finally, Victory Capital Management Inc. lifted its holdings in Texas Roadhouse by 770.6% in the 3rd quarter. Victory Capital Management Inc. now owns 972,251 shares of the restaurant operator's stock valued at $161,540,000 after purchasing an additional 860,571 shares in the last quarter. 94.82% of the stock is currently owned by hedge funds and other institutional investors.

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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