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

Texas Roadhouse, Inc. (NASDAQ:TXRH) shares gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $166.02, but opened at $175.00. Texas Roadhouse shares last traded at $173.24, with a volume of 55,220 shares.

The restaurant operator reported $1.79 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.13. The firm had revenue of $1.34 billion for the quarter, compared to analyst estimates of $1.34 billion. Texas Roadhouse had a return on equity of 28.85% and a net margin of 6.94%. The business’s quarterly revenue was up 14.5% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.22 EPS.

Texas Roadhouse Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 25th. Shareholders of record on Wednesday, June 12th were paid a $0.61 dividend. This represents a $2.44 dividend on an annualized basis and a yield of 1.43%. The ex-dividend date was Wednesday, June 12th. Texas Roadhouse’s dividend payout ratio is currently 49.39%.

Wall Street Analyst Weigh In

TXRH has been the topic of several recent analyst reports. BMO Capital Markets boosted their price objective on shares of Texas Roadhouse from $130.00 to $145.00 and gave the stock a “market perform” rating in a research note on Friday, May 3rd. Royal Bank of Canada boosted their price target on Texas Roadhouse from $165.00 to $175.00 and gave the stock a “sector perform” rating in a research report on Friday, June 7th. Stephens raised their price objective on Texas Roadhouse from $150.00 to $164.00 and gave the company an “equal weight” rating in a research report on Friday, May 3rd. Bank of America boosted their target price on Texas Roadhouse from $189.00 to $205.00 and gave the stock a “buy” rating in a report on Wednesday, July 17th. Finally, Deutsche Bank Aktiengesellschaft raised their price target on Texas Roadhouse from $190.00 to $193.00 and gave the company a “buy” rating in a report on Tuesday, July 16th. Thirteen analysts have rated the stock with a hold rating and ten have issued a buy rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $166.18.

Insider Transactions at Texas Roadhouse

In related news, CEO Gerald L. Morgan sold 15,000 shares of the business’s stock in a transaction dated Tuesday, May 28th. The stock was sold at an average price of $171.70, for a total value of $2,575,500.00. Following the completion of the transaction, the chief executive officer now owns 77,847 shares of the company’s stock, valued at $13,366,329.90. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In related news, Director Curtis Warfield sold 1,025 shares of the firm’s stock in a transaction dated Wednesday, May 8th. The stock was sold at an average price of $165.82, for a total value of $169,965.50. Following the sale, the director now directly owns 12,372 shares of the company’s stock, valued at $2,051,525.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Gerald L. Morgan sold 15,000 shares of the business’s stock in a transaction dated Tuesday, May 28th. The stock was sold at an average price of $171.70, for a total value of $2,575,500.00. Following the transaction, the chief executive officer now directly owns 77,847 shares of the company’s stock, valued at approximately $13,366,329.90. The disclosure for this sale can be found here. In the last three months, insiders have sold 19,025 shares of company stock valued at $3,251,266. 0.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Texas Roadhouse

Hedge funds have recently made changes to their positions in the stock. Allspring Global Investments Holdings LLC boosted its holdings in shares of Texas Roadhouse by 8.0% during the 2nd quarter. Allspring Global Investments Holdings LLC now owns 91,705 shares of the restaurant operator’s stock valued at $15,747,000 after acquiring an additional 6,819 shares in the last quarter. Bank of New York Mellon Corp boosted its stake in shares of Texas Roadhouse by 0.3% during the second quarter. Bank of New York Mellon Corp now owns 744,624 shares of the restaurant operator’s stock valued at $127,859,000 after purchasing an additional 2,578 shares in the last quarter. Raymond James Trust N.A. grew its holdings in shares of Texas Roadhouse by 109.5% during the second quarter. Raymond James Trust N.A. now owns 4,587 shares of the restaurant operator’s stock worth $788,000 after purchasing an additional 2,397 shares during the last quarter. Fifth Third Wealth Advisors LLC acquired a new position in shares of Texas Roadhouse in the second quarter valued at approximately $400,000. Finally, Fifth Third Bancorp increased its stake in shares of Texas Roadhouse by 40.7% in the second quarter. Fifth Third Bancorp now owns 608 shares of the restaurant operator’s stock valued at $104,000 after buying an additional 176 shares during the period. 94.82% of the stock is currently owned by institutional investors and hedge funds.

Texas Roadhouse Stock Performance

The business’s fifty day moving average is $169.75 and its 200-day moving average is $153.70. The firm has a market cap of $11.40 billion, a P/E ratio of 35.07, a price-to-earnings-growth ratio of 1.59 and a beta of 1.01.

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.