News Summary
In recent developments, Texas Roadhouse has attracted significant investments from various institutional investors, highlighted by Jefferies Financial Group’s massive 730.2% stake boost. Other firms like Bessemer Group and Comerica Bank are also increasing their holdings. Despite some insider selling, the majority of shares remain with institutional investors. Texas Roadhouse has received favorable ratings from brokers, with an average target price of $196.85. The company reported promising quarterly earnings and declared a dividend, showcasing its robust performance in the market.
Texas Roadhouse Sees Major Institutional Investment Growth in Q1 2023
In Texas, there are significant developments at Texas Roadhouse as Jefferies Financial Group has amplified its ownership in the popular restaurant chain by an impressive 730.2% during the first quarter of 2023. This expansion granted Jefferies an additional 15,005 shares, bringing its total to 17,060 shares valued at around $2,843,000 as the reporting period concluded. The surge in investment underscores the increasing investor confidence in the company’s growth potential.
Institutional investors have been actively acquiring shares of Texas Roadhouse, with several notable increases in stake. Bessemer Group has raised its investment by 4.3%, accumulating 176,065 shares valued at approximately $31,768,000 after purchasing 7,301 additional shares. Golden State Wealth Management LLC also made a significant move by increasing its shareholdings by 157.3%, bringing its total to 4,658 shares worth about $776,000. Meanwhile, Comerica Bank boosted its stake by 16.0% to a total of 132,914 shares, valued at around $23,982,000 after acquiring 18,339 additional shares.
Wealth Enhancement Advisory Services LLC recorded a remarkable increase of 253.5%, now holding 38,086 shares with a value of $6,346,000 after acquiring 27,312 shares. New investors, Brighton Jones LLC, have also joined in with a fresh investment of $499,000. Institutional investors now own approximately 94.82% of Texas Roadhouse, highlighting the robust interest in the brand.
Insider Selling Activity
Despite the rise in institutional investments, there has been some insider selling. Director Donna E. Epps sold 800 shares at an average price of $186.52, totaling around $149,216, which represents a 14.73% decrease in her ownership. After this sale, she retains 4,632 shares valued at approximately $863,960.64. Additionally, Director Gregory N. Moore offloaded 1,000 shares at an average price of $187.62, amounting to $187,620 and resulting in a 2.56% decline in his holdings. Presently, corporate insiders possess about 0.50% of the company’s stock.
Market Analysis and Broker Ratings
Texas Roadhouse has received attention from various brokerage firms, with Deutsche Bank recently reaffirming a *buy* rating. Guggenheim has also raised its price target from $200.00 to $210.00 while maintaining a *buy* rating. In contrast, Wells Fargo has adopted a more cautious stance, lowering its price target from $175.00 to $170.00 with an *equal weight* rating. Melius has initiated coverage with a *buy* rating and a price target set at $235.00.
Currently, Texas Roadhouse holds a *Moderate Buy* rating with an average target price of $196.85. As of August 8th, shares opened at $182.97, with the company boasting a market capitalization of $12.14 billion. The restaurant chain reported a price-to-earnings ratio of 28.24 and a PEG ratio of 2.58, reflecting a solid investment profile.
Quarterly Earnings and Future Outlook
In its latest earnings report, Texas Roadhouse revealed earnings per share of $1.70, falling short of estimates by $0.05. However, revenue was strong, reaching approximately $1.45 billion, which slightly exceeded expectations with a year-over-year growth of 11.8%. The company has also declared a quarterly dividend of $0.68 with a yield of 1.5%, providing additional encouragement for investors.
Founded in 1993 and headquartered in Louisville, Kentucky, Texas Roadhouse has successfully established a reputation for flavorful American dining across the U.S. and internationally, under various brands including Texas Roadhouse, Bubba’s 33, and Jaggers. With a dynamic investment landscape and promising growth trajectories, Texas Roadhouse continues to enhance its appeal for both investors and customers alike.
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