Texas Roadhouse (NASDAQ:TXRH) Shares Gap Up on Earnings Beat

Texas Roadhouse, Inc. (NASDAQ:TXRH)’s share price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $157.90, but opened at $170.10. Texas Roadhouse shares last traded at $165.63, with a volume of 350,741 shares changing hands.

The restaurant operator reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.65 by $0.04. Texas Roadhouse had a net margin of 6.58% and a return on equity of 27.43%. The firm had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.32 billion. During the same quarter last year, the firm earned $1.28 EPS. The firm’s revenue for the quarter was up 12.5% on a year-over-year basis.

Texas Roadhouse Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 26th. Shareholders of record on Wednesday, March 13th were paid a $0.61 dividend. This is an increase from Texas Roadhouse’s previous quarterly dividend of $0.55. The ex-dividend date was Tuesday, March 12th. This represents a $2.44 annualized dividend and a dividend yield of 1.49%. Texas Roadhouse’s payout ratio is 53.86%.

Wall Street Analysts Forecast Growth

TXRH has been the subject of several research reports. Evercore ISI boosted their price target on shares of Texas Roadhouse from $160.00 to $175.00 and gave the stock an “outperform” rating in a research note on Friday. Wedbush boosted their price target on shares of Texas Roadhouse from $170.00 to $180.00 and gave the stock an “outperform” rating in a research note on Friday. Piper Sandler boosted their price target on shares of Texas Roadhouse from $110.00 to $136.00 and gave the stock a “neutral” rating in a research note on Tuesday, February 20th. Morgan Stanley boosted their price target on shares of Texas Roadhouse from $145.00 to $155.00 and gave the stock an “equal weight” rating in a research note on Friday. Finally, Barclays lifted their price objective on shares of Texas Roadhouse from $138.00 to $160.00 and gave the stock an “equal weight” rating in a research report on Friday. Twelve equities research analysts have rated the stock with a hold rating and ten have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and an average target price of $151.30.

Insider Activity

In other news, President Regina A. Tobin sold 3,064 shares of Texas Roadhouse stock in a transaction dated Tuesday, March 5th. The shares were sold at an average price of $150.07, for a total value of $459,814.48. Following the sale, the president now owns 15,261 shares of the company’s stock, valued at $2,290,218.27. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, CTO Hernan E. Mujica sold 878 shares of the stock in a transaction dated Wednesday, February 28th. The shares were sold at an average price of $149.61, for a total transaction of $131,357.58. Following the completion of the transaction, the chief technology officer now directly owns 22,361 shares of the company’s stock, valued at $3,345,429.21. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President Regina A. Tobin sold 3,064 shares of the stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $150.07, for a total transaction of $459,814.48. Following the transaction, the president now directly owns 15,261 shares of the company’s stock, valued at $2,290,218.27. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 12,382 shares of company stock valued at $1,843,145. Company insiders own 0.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Comerica Bank purchased a new position in Texas Roadhouse in the third quarter valued at about $10,585,000. Bamco Inc. NY increased its holdings in Texas Roadhouse by 16.9% in the third quarter. Bamco Inc. NY now owns 296,213 shares of the restaurant operator’s stock valued at $28,466,000 after buying an additional 42,755 shares in the last quarter. Charles Schwab Investment Management Inc. increased its holdings in Texas Roadhouse by 1.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 754,658 shares of the restaurant operator’s stock valued at $72,523,000 after buying an additional 8,219 shares in the last quarter. Assenagon Asset Management S.A. purchased a new position in Texas Roadhouse in the third quarter valued at about $8,748,000. Finally, Boston Trust Walden Corp grew its position in shares of Texas Roadhouse by 12.9% in the fourth quarter. Boston Trust Walden Corp now owns 777,202 shares of the restaurant operator’s stock valued at $94,997,000 after purchasing an additional 89,019 shares during the last quarter. 94.82% of the stock is owned by hedge funds and other institutional investors.

Texas Roadhouse Price Performance

The firm’s 50-day moving average price is $152.50 and its 200 day moving average price is $129.54. The firm has a market capitalization of $10.93 billion, a price-to-earnings ratio of 36.12, a price-to-earnings-growth ratio of 1.70 and a beta of 1.00.

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.