Texas Roadhouse (NASDAQ:TXRH) Shares Gap Down After Earnings Miss

Texas Roadhouse, Inc. (NASDAQ:TXRH)’s stock price gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $185.01, but opened at $173.94. Texas Roadhouse shares last traded at $175.79, with a volume of 681,891 shares.

The restaurant operator reported $1.86 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.09). The company had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.50 billion. Texas Roadhouse had a return on equity of 32.11% and a net margin of 7.72%. The firm’s revenue for the quarter was up 12.7% compared to the same quarter last year. During the same period in the previous year, the company earned $1.79 EPS.

Texas Roadhouse Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 30th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.68 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.6%. Texas Roadhouse’s payout ratio is 41.98%.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. UBS Group upped their price target on Texas Roadhouse from $200.00 to $220.00 and gave the stock a “buy” rating in a report on Friday, June 6th. Bank of America upped their price target on Texas Roadhouse from $203.00 to $219.00 and gave the stock a “buy” rating in a report on Friday, July 18th. Guggenheim upped their price target on Texas Roadhouse from $200.00 to $210.00 and gave the stock a “buy” rating in a report on Friday, July 11th. Stifel Nicolaus upped their price target on Texas Roadhouse from $180.00 to $188.00 and gave the stock a “hold” rating in a report on Friday, July 25th. Finally, Citigroup upped their price target on Texas Roadhouse from $180.00 to $197.00 and gave the stock a “neutral” rating in a report on Tuesday, July 29th. Ten investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $197.85.

Insider Buying and Selling at Texas Roadhouse

In other Texas Roadhouse news, Director Donna E. Epps sold 800 shares of the stock in a transaction on Friday, May 23rd. The stock was sold at an average price of $186.52, for a total transaction of $149,216.00. Following the completion of the transaction, the director directly owned 4,632 shares in the company, valued at $863,960.64. This represents a 14.73% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Gregory N. Moore sold 1,000 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $187.62, for a total value of $187,620.00. Following the transaction, the director owned 38,050 shares of the company’s stock, valued at $7,138,941. This represents a 2.56% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.50% of the company’s stock.

Institutional Trading of Texas Roadhouse

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Axiom Investors LLC DE increased its stake in shares of Texas Roadhouse by 3,696.7% in the first quarter. Axiom Investors LLC DE now owns 2,173,807 shares of the restaurant operator’s stock valued at $362,221,000 after buying an additional 2,116,552 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its stake in shares of Texas Roadhouse by 209.3% in the first quarter. T. Rowe Price Investment Management Inc. now owns 1,609,608 shares of the restaurant operator’s stock valued at $268,209,000 after buying an additional 1,089,256 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Texas Roadhouse by 1.5% in the second quarter. Geode Capital Management LLC now owns 1,302,021 shares of the restaurant operator’s stock valued at $244,048,000 after buying an additional 19,296 shares in the last quarter. FMR LLC increased its stake in shares of Texas Roadhouse by 44.8% in the fourth quarter. FMR LLC now owns 1,300,987 shares of the restaurant operator’s stock valued at $234,737,000 after buying an additional 402,465 shares in the last quarter. Finally, AQR Capital Management LLC increased its stake in shares of Texas Roadhouse by 54.3% in the first quarter. AQR Capital Management LLC now owns 1,261,587 shares of the restaurant operator’s stock valued at $209,840,000 after buying an additional 443,767 shares in the last quarter. 94.82% of the stock is currently owned by institutional investors and hedge funds.

Texas Roadhouse Price Performance

The stock has a 50 day moving average price of $187.61 and a two-hundred day moving average price of $179.24. The company has a market capitalization of $11.47 billion, a price-to-earnings ratio of 26.39, a price-to-earnings-growth ratio of 2.61 and a beta of 0.86.

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.