Wall Street Zen Downgrades Texas Roadhouse (NASDAQ:TXRH) to Sell

Texas Roadhouse (NASDAQ:TXRH) was downgraded by analysts at Wall Street Zen from a “hold” rating to a “sell” rating in a note issued to investors on Saturday.

Several other research firms have also issued reports on TXRH. UBS Group reiterated a “buy” rating on shares of Texas Roadhouse in a report on Monday, November 10th. The Goldman Sachs Group dropped their price objective on Texas Roadhouse from $200.00 to $180.00 and set a “neutral” rating on the stock in a research note on Wednesday, October 1st. Morgan Stanley cut their price objective on Texas Roadhouse from $210.00 to $205.00 and set an “overweight” rating for the company in a report on Monday, November 10th. Royal Bank Of Canada lowered their target price on shares of Texas Roadhouse from $185.00 to $175.00 and set a “sector perform” rating on the stock in a report on Friday, November 7th. Finally, Mizuho raised shares of Texas Roadhouse to a “strong-buy” rating in a research report on Tuesday, October 28th. Two analysts have rated the stock with a Strong Buy rating, eleven have issued a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $194.26.

Texas Roadhouse Stock Up 3.2%

Shares of TXRH stock opened at $171.36 on Friday. Texas Roadhouse has a 12 month low of $148.73 and a 12 month high of $199.99. The company’s fifty day simple moving average is $168.71 and its 200-day simple moving average is $173.66. The firm has a market cap of $11.34 billion, a PE ratio of 26.20, a P/E/G ratio of 2.70 and a beta of 0.89.

Texas Roadhouse (NASDAQ:TXRH) last issued its quarterly earnings results on Thursday, November 6th. The restaurant operator reported $1.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.28 by ($0.03). Texas Roadhouse had a net margin of 7.49% and a return on equity of 30.59%. The business had revenue of $1.44 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same quarter in the previous year, the firm posted $1.26 earnings per share. The firm’s quarterly revenue was up 12.8% on a year-over-year basis. On average, equities analysts predict that Texas Roadhouse will post 7.23 earnings per share for the current fiscal year.

Insider Activity

In other Texas Roadhouse news, Director Hugh J. Carroll sold 1,000 shares of the stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $167.27, for a total value of $167,270.00. Following the transaction, the director directly owned 1,854 shares of the company’s stock, valued at $310,118.58. This represents a 35.04% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Gregory N. Moore sold 1,400 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The stock was sold at an average price of $170.00, for a total transaction of $238,000.00. Following the sale, the director owned 32,150 shares of the company’s stock, valued at $5,465,500. This trade represents a 4.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Texas Roadhouse

Large investors have recently made changes to their positions in the company. Axiom Investors LLC DE boosted its stake in Texas Roadhouse by 3,696.7% in the 1st quarter. Axiom Investors LLC DE now owns 2,173,807 shares of the restaurant operator’s stock valued at $362,221,000 after purchasing an additional 2,116,552 shares during the period. Amundi lifted its holdings in shares of Texas Roadhouse by 2,865.8% during the first quarter. Amundi now owns 78,684 shares of the restaurant operator’s stock worth $13,144,000 after buying an additional 76,031 shares in the last quarter. Alliancebernstein L.P. boosted its position in shares of Texas Roadhouse by 8.2% in the first quarter. Alliancebernstein L.P. now owns 505,022 shares of the restaurant operator’s stock valued at $84,152,000 after acquiring an additional 38,348 shares during the period. NewEdge Advisors LLC grew its stake in shares of Texas Roadhouse by 12.0% in the first quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator’s stock valued at $404,000 after acquiring an additional 259 shares in the last quarter. Finally, Samlyn Capital LLC acquired a new position in shares of Texas Roadhouse in the first quarter valued at about $32,359,000. Institutional investors own 94.82% of the company’s stock.

About Texas Roadhouse

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.