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

Texas Roadhouse, Inc. (NASDAQ:TXRH)’s stock price gapped up before the market opened on Friday following a stronger than expected earnings report. 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 trading hands.

The restaurant operator reported $1.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.65 by $0.04. The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.32 billion. Texas Roadhouse had a return on equity of 29.49% and a net margin of 6.94%. The company’s revenue for the quarter was up 12.5% compared to the same quarter last year. During the same period in the previous year, the company earned $1.28 EPS.

Texas Roadhouse Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 26th. Stockholders of record on Wednesday, March 13th were given a dividend of $0.61 per share. This represents a $2.44 dividend on an annualized basis and a dividend yield of 1.49%. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.55. The ex-dividend date was Tuesday, March 12th. Texas Roadhouse’s dividend payout ratio (DPR) is currently 49.39%.

Analyst Ratings Changes

TXRH has been the topic of several research analyst reports. Stephens raised their price objective on Texas Roadhouse from $150.00 to $164.00 and gave the stock an “equal weight” rating in a research note on Friday. Northcoast Research lowered Texas Roadhouse from a “buy” rating to a “neutral” rating in a research report on Tuesday, February 20th. Piper Sandler boosted their price objective on Texas Roadhouse from $110.00 to $136.00 and gave the company a “neutral” rating in a research report on Tuesday, February 20th. Wedbush raised their target price on shares of Texas Roadhouse from $170.00 to $180.00 and gave the stock an “outperform” rating in a report on Friday. Finally, Barclays lifted their price target on shares of Texas Roadhouse from $138.00 to $160.00 and gave the company an “equal weight” rating in a research note on Friday. Twelve analysts have rated the stock with a hold rating and ten have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Texas Roadhouse presently has a consensus rating of “Hold” and an average price target of $151.30.

Insider Buying and Selling at Texas Roadhouse

In other Texas Roadhouse news, Director Donna E. Epps sold 670 shares of the company’s stock in a transaction on Thursday, March 7th. The shares were sold at an average price of $149.97, for a total transaction of $100,479.90. Following the sale, the director now directly owns 4,142 shares of the company’s stock, valued at $621,175.74. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In related news, President Regina A. Tobin sold 3,064 shares of Texas Roadhouse stock in a transaction that occurred on Tuesday, March 5th. The stock was sold at an average price of $150.07, for a total transaction of $459,814.48. Following the completion of the sale, the president now directly owns 15,261 shares of the company’s stock, valued at approximately $2,290,218.27. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Donna E. Epps sold 670 shares of the company’s stock in a transaction on Thursday, March 7th. The shares were sold at an average price of $149.97, for a total value of $100,479.90. Following the completion of the transaction, the director now directly owns 4,142 shares in the company, valued at $621,175.74. The disclosure for this sale can be found here. Insiders sold a total of 12,382 shares of company stock worth $1,843,145 over the last ninety days. 0.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Operose Advisors LLC acquired a new stake in Texas Roadhouse during the third quarter worth about $28,000. Rise Advisors LLC acquired a new stake in shares of Texas Roadhouse during the 1st quarter valued at $32,000. China Universal Asset Management Co. Ltd. grew its position in Texas Roadhouse by 454.5% during the 1st quarter. China Universal Asset Management Co. Ltd. now owns 244 shares of the restaurant operator’s stock worth $38,000 after acquiring an additional 200 shares during the last quarter. Fifth Third Bancorp increased its holdings in Texas Roadhouse by 35.8% in the 3rd quarter. Fifth Third Bancorp now owns 474 shares of the restaurant operator’s stock worth $46,000 after purchasing an additional 125 shares in the last quarter. Finally, TFC Financial Management Inc. increased its holdings in Texas Roadhouse by 100.0% in the 4th quarter. TFC Financial Management Inc. now owns 580 shares of the restaurant operator’s stock worth $71,000 after purchasing an additional 290 shares in the last quarter. 94.82% of the stock is owned by institutional investors.

Texas Roadhouse Price Performance

The firm has a 50-day simple moving average of $152.50 and a 200 day simple moving average of $129.78. The stock has a market capitalization of $10.93 billion, a P/E ratio of 33.12, a P/E/G ratio of 1.71 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.