Texas Roadhouse (NASDAQ:TXRH) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Texas Roadhouse from a “sell” to a “hold,” while the broader analyst view remains cautious with an overall average rating of “Hold” and a consensus price target of $193.90.
• The company posted solid quarterly results, reporting EPS of $1.87 versus estimates of $1.80 and revenue of $1.63 billion, with sales up 10.5% year over year.
• Shares were trading higher after the report, and the article also noted insider selling plus continued heavy institutional ownership, with about 94.82% of shares held by institutions and hedge funds.

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

Other analysts have also recently issued research reports about the stock. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $200.00 price objective on shares of Texas Roadhouse in a research note on Friday. BMO Capital Markets restated a "market perform" rating and set a $165.00 target price on shares of Texas Roadhouse in a research report on Friday, February 20th. Truist Financial lowered their target price 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. BTIG Research reiterated a "buy" rating and issued a $200.00 price target on shares of Texas Roadhouse in a research report on Friday, February 20th. Finally, Barclays cut their price target on Texas Roadhouse from $188.00 to $175.00 and set an "equal weight" rating for the company in a research note on Friday. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and fourteen have given a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $193.90.

Texas Roadhouse Trading Up 12.3%

NASDAQ:TXRH opened at $177.30 on Friday. The stock has a 50 day simple moving average of $166.81 and a 200 day simple moving average of $172.64. The stock has a market cap of $11.69 billion, a P/E ratio of 28.32, a PEG ratio of 2.03 and a beta of 0.77. Texas Roadhouse has a 1-year low of $153.82 and a 1-year high of $199.99.

Texas Roadhouse (NASDAQ:TXRH - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The restaurant operator reported $1.87 EPS for the quarter, beating analysts' consensus estimates of $1.80 by $0.07. The firm had revenue of $1.63 billion for the quarter, compared to analyst estimates of $1.64 billion. Texas Roadhouse had a return on equity of 28.17% and a net margin of 6.85%.The company's revenue for the quarter was up 10.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.70 EPS. As a group, sell-side analysts forecast that Texas Roadhouse will post 6.33 EPS for the current year.

Insider Activity

In other Texas Roadhouse news, Director Hugh J. Carroll sold 988 shares of the firm's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $170.96, for a total value of $168,908.48. Following the transaction, the director directly owned 866 shares of the company's stock, valued at $148,051.36. This trade represents a 53.29% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Donna E. Epps sold 850 shares of the business's stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $172.45, for a total transaction of $146,582.50. Following the completion of the transaction, the director owned 4,892 shares of the company's stock, valued at $843,625.40. The trade was a 14.80% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 12,988 shares of company stock valued at $2,218,144. Company insiders own 0.50% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in TXRH. Alliancebernstein L.P. boosted its holdings in shares of Texas Roadhouse by 14.7% in the 3rd quarter. Alliancebernstein L.P. now owns 3,638,914 shares of the restaurant operator's stock valued at $604,606,000 after purchasing an additional 466,176 shares in the last quarter. AQR Capital Management LLC raised its holdings 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 buying an additional 575,685 shares in the last quarter. Capital World Investors lifted 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 buying an additional 300,405 shares during the last quarter. UBS Group AG lifted 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 buying an additional 522,509 shares during the last quarter. Finally, Geode Capital Management LLC boosted its stake in Texas Roadhouse by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 1,367,120 shares of the restaurant operator's stock valued at $226,984,000 after buying an additional 24,834 shares in the last quarter. 94.82% of the stock is currently owned by institutional investors and hedge funds.

Texas Roadhouse News Summary

Here are the key news stories impacting Texas Roadhouse this week:

• Positive Sentiment: Texas Roadhouse reported first-quarter EPS of $1.87, ahead of consensus estimates, while revenue rose 10.5% year over year to $1.63 billion, signaling continued demand for its restaurants.
• Positive Sentiment: The company raised its quarterly dividend to $0.75 per share, reinforcing management’s confidence in cash generation and giving income-focused investors a larger payout.
• Positive Sentiment: Several market headlines pointed to the stock surging after the earnings release, suggesting investors viewed the quarter as better than expected overall, despite a slight revenue miss versus estimates.
• Neutral Sentiment: Analysts and commentary were mixed on the report: earnings were strong, but revenue came in slightly below expectations, keeping some caution around how much upside is left after the post-earnings move.
• Neutral Sentiment: A Seeking Alpha piece on May 8 upgraded the stock, but described upside potential as only moderate, implying the shares may be fairly valued after the recent run-up. Texas Roadhouse: It Hasn't Bottomed Out Yet, But Upside Potential Is Medium Well (Rating Upgrade)

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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