Texas Roadhouse (NASDAQ:TXRH) Upgraded to “Hold” at Wall Street Zen

Wall Street Zen upgraded shares of Texas Roadhouse (NASDAQ:TXRH) from a sell rating to a hold rating in a report released on Sunday morning.

TXRH has been the subject of a number of other research reports. KeyCorp reissued a “sector weight” rating on shares of Texas Roadhouse in a research note on Friday, February 20th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $200.00 price objective on shares of Texas Roadhouse in a research note on Friday. Morgan Stanley reissued an “overweight” rating and set a $201.00 price objective on shares of Texas Roadhouse in a research note on Friday. TD Cowen dropped their price objective on Texas Roadhouse from $215.00 to $192.00 and set a “buy” rating for the company in a research note on Friday. Finally, Benchmark reaffirmed a “hold” rating on shares of Texas Roadhouse in a research note on Monday, February 23rd. 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 stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $193.90.

Texas Roadhouse Stock Performance

NASDAQ:TXRH opened at $177.30 on Friday. The firm has a market cap of $11.69 billion, a PE ratio of 28.32, a price-to-earnings-growth ratio of 2.03 and a beta of 0.77. Texas Roadhouse has a fifty-two week low of $153.82 and a fifty-two week high of $199.99. The business has a 50 day moving average price of $166.81 and a 200-day moving average price of $172.64.

Texas Roadhouse (NASDAQ:TXRH) last released its quarterly earnings data on Thursday, May 7th. The restaurant operator reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.80 by $0.07. The firm had revenue of $1.63 billion during the quarter, compared to analyst estimates of $1.64 billion. Texas Roadhouse had a return on equity of 27.86% and a net margin of 6.85%.The business’s quarterly revenue was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.70 earnings per share. Research analysts predict that Texas Roadhouse will post 6.33 EPS for the current year.

Texas Roadhouse Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Tuesday, June 2nd will be paid a $0.75 dividend. The ex-dividend date of this dividend is Tuesday, June 2nd. This represents a $3.00 dividend on an annualized basis and a yield of 1.7%. Texas Roadhouse’s dividend payout ratio (DPR) is presently 47.92%.

Insider Buying and Selling

In related news, CTO Hernan E. Mujica sold 5,000 shares of the firm’s stock in a transaction on Friday, March 13th. The stock was sold at an average price of $170.00, for a total value of $850,000.00. Following the completion of the sale, the chief technology officer owned 15,552 shares of the company’s stock, valued at $2,643,840. This trade represents a 24.33% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Gregory N. Moore sold 1,700 shares of the firm’s stock in a transaction on Friday, March 6th. The stock was sold at an average price of $171.59, for a total value of $291,703.00. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 12,988 shares of company stock valued at $2,218,144 over the last three months. Insiders own 0.50% of the company’s stock.

Hedge Funds Weigh In On Texas Roadhouse

A number of institutional investors have recently added to or reduced their stakes in TXRH. Capital World Investors raised its holdings in Texas Roadhouse by 580.2% in the third quarter. Capital World Investors now owns 2,236,885 shares of the restaurant operator’s stock worth $371,658,000 after purchasing an additional 1,908,033 shares in the last quarter. Balyasny Asset Management L.P. bought a new position in Texas Roadhouse in the third quarter worth $157,310,000. Wellington Management Group LLP raised its holdings in Texas Roadhouse by 228.4% in the fourth quarter. Wellington Management Group LLP now owns 1,329,052 shares of the restaurant operator’s stock worth $220,623,000 after purchasing an additional 924,306 shares in the last quarter. Norges Bank bought a new position in Texas Roadhouse in the fourth quarter worth $145,734,000. Finally, Victory Capital Management Inc. raised its holdings in Texas Roadhouse by 770.6% in the third quarter. Victory Capital Management Inc. now owns 972,251 shares of the restaurant operator’s stock worth $161,540,000 after purchasing an additional 860,571 shares in the last quarter. Institutional investors own 94.82% of the company’s stock.

Key Headlines Impacting Texas Roadhouse

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.