Texas Roadhouse (NASDAQ: TXRH) has been downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating, as reported in a research note released on November 7, 2023. This shift comes amid a series of adjustments by other financial institutions regarding the company’s stock performance.
Truist Financial has lowered its price target for Texas Roadhouse from $210.00 to $195.00, while maintaining a “buy” rating. Similarly, Stephens has revised its target price down from $175.00 to $168.00 and assigned an “equal weight” rating. Royal Bank of Canada also reduced its target from $185.00 to $175.00, giving the stock a “sector perform” rating. UBS Group reaffirmed its “buy” rating on November 10, 2023, while Goldman Sachs cut its price objective from $200.00 to $180.00, assigning a “neutral” rating.
As of now, analysts have issued various ratings for Texas Roadhouse, with two maintaining a “strong buy,” eleven a “buy,” nine an “hold,” and one a “sell.” According to data from MarketBeat, the stock has an average rating of “moderate buy” with a consensus price target of $194.26.
Recent Earnings and Financial Performance
Texas Roadhouse recently announced its quarterly earnings on November 6, 2023. The restaurant chain reported earnings per share (EPS) of $1.25, falling short of the consensus estimate of $1.28 by $0.03. The company achieved a net margin of 7.49% and a return on equity of 30.59%. Revenue for the quarter reached $1.44 billion, slightly exceeding analyst expectations of $1.43 billion. This represents a year-over-year increase of 12.8%, up from $1.26 EPS reported the previous year. Analysts predict an EPS of $7.23 for the current fiscal year.
Insider Trading Activity
In related news, significant insider trading activity has been reported. On December 3, 2023, Director Gregory N. Moore sold 1,400 shares at an average price of $170.00, totaling $238,000.00. Following this transaction, Moore retained 32,150 shares valued at approximately $5,465,500, reflecting a 4.17% reduction in his holdings.
Another insider, Director Hugh J. Carroll, sold 1,000 shares on December 4, receiving $167.27 per share, amounting to $167,270.00. After this sale, Carroll’s remaining shares total 1,854, valued at around $310,118.58, indicating a decrease of 35.04% in his position.
Currently, corporate insiders own approximately 0.50% of Texas Roadhouse’s stock.
Institutional Investment Trends
Recent activity among institutional investors indicates a mix of strategies regarding Texas Roadhouse. Caldwell Trust Co established a new position in the second quarter, valued at $28,000. Measured Wealth Private Client Group LLC and Root Financial Partners LLC also acquired new stakes during the third quarter, valued at approximately $33,000 and $36,000, respectively.
Ameritas Advisory Services LLC purchased a new stake worth $53,000 in the second quarter. Furthermore, Salomon & Ludwin LLC increased its holdings by 37.2% in the third quarter, now owning 299 shares valued at $50,000. Overall, institutional investors hold about 94.82% of Texas Roadhouse’s stock.
About Texas Roadhouse
Founded in 1993 by Kent Taylor, Texas Roadhouse, Inc. is a casual dining chain renowned for its hand-cut steaks, fall-off-the-bone ribs, and a variety of chicken and seafood options. The restaurant features a Western-themed decor, open kitchens, and an energetic atmosphere that emphasizes hospitality and value, appealing to families and communities alike.
As Texas Roadhouse navigates these recent changes in stock ratings and financial performance, investors will be closely monitoring the company’s next moves and overall market response.
