Texas Roadhouse (NASDAQ:TXRH) Cut to “Sell” at Wall Street Zen

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

A number of other equities research analysts also recently commented on TXRH. KeyCorp reiterated a “sector weight” rating on shares of Texas Roadhouse in a research report on Friday, February 20th. Mizuho increased their target price on Texas Roadhouse from $190.00 to $200.00 and gave the company an “outperform” rating in a research report on Thursday, February 12th. Stephens raised their target price on shares of Texas Roadhouse from $168.00 to $180.00 and gave the company an “equal weight” rating in a report on Friday, February 20th. Morgan Stanley reduced their price target on shares of Texas Roadhouse from $208.00 to $202.00 and set an “overweight” rating on the stock in a research report on Monday, February 23rd. Finally, Sanford C. Bernstein set a $185.00 price target on shares of Texas Roadhouse in a research note on Wednesday, January 7th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and thirteen have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $196.55.

Texas Roadhouse Stock Performance

Shares of NASDAQ:TXRH opened at $172.50 on Friday. The firm has a market cap of $11.41 billion, a price-to-earnings ratio of 28.33, a P/E/G ratio of 1.86 and a beta of 0.86. The firm has a fifty day moving average price of $182.61 and a 200 day moving average price of $173.68. Texas Roadhouse has a fifty-two week low of $148.73 and a fifty-two week high of $199.99.

Texas Roadhouse (NASDAQ:TXRH) last announced its quarterly earnings results on Thursday, February 19th. The restaurant operator reported $1.28 EPS for the quarter, missing the consensus estimate of $1.53 by ($0.25). Texas Roadhouse had a return on equity of 27.88% and a net margin of 6.90%.The company had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same quarter in the previous year, the firm earned $1.73 EPS. The firm’s revenue for the quarter was up 3.1% compared to the same quarter last year. As a group, research analysts predict that Texas Roadhouse will post 7.23 earnings per share for the current year.

Texas Roadhouse Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 17th will be paid a dividend of $0.75 per share. The ex-dividend date of this dividend is Tuesday, March 17th. This is a positive change from Texas Roadhouse’s previous quarterly dividend of $0.68. This represents a $3.00 annualized dividend and a yield of 1.7%. Texas Roadhouse’s payout ratio is presently 44.66%.

Insider Activity

In other news, Director Donna E. Epps sold 850 shares of the stock in a transaction on Friday, March 6th. The shares were sold at an average price of $172.45, for a total value of $146,582.50. Following the sale, the director owned 4,892 shares of the company’s stock, valued at approximately $843,625.40. This represents a 14.80% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Gregory N. Moore sold 1,700 shares of the firm’s stock in a transaction dated Friday, March 6th. The stock was sold at an average price of $171.59, for a total transaction of $291,703.00. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 12,550 shares of company stock valued at $2,353,936. 0.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently modified their holdings of TXRH. NewEdge Advisors LLC lifted its stake in shares of Texas Roadhouse by 12.0% during the 1st quarter. NewEdge Advisors LLC now owns 2,423 shares of the restaurant operator’s stock worth $404,000 after acquiring an additional 259 shares during the last quarter. Focus Partners Wealth increased its stake in Texas Roadhouse by 23.3% in the first quarter. Focus Partners Wealth now owns 6,124 shares of the restaurant operator’s stock worth $1,020,000 after purchasing an additional 1,157 shares during the period. Geneos Wealth Management Inc. lifted its position in shares of Texas Roadhouse by 36.0% during the first quarter. Geneos Wealth Management Inc. now owns 419 shares of the restaurant operator’s stock worth $70,000 after purchasing an additional 111 shares during the last quarter. Sivia Capital Partners LLC purchased a new stake in shares of Texas Roadhouse during the second quarter valued at $657,000. Finally, Sigma Planning Corp boosted its stake in shares of Texas Roadhouse by 8.1% during the second quarter. Sigma Planning Corp now owns 2,228 shares of the restaurant operator’s stock valued at $418,000 after purchasing an additional 166 shares during the period. Hedge funds and other 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.