Texas Roadhouse (NASDAQ:TXRH) Shares Down 4.3% – Should You Sell?

Texas Roadhouse, Inc. (NASDAQ:TXRH) fell 4.3% during mid-day trading on Monday . The stock traded as low as $183.06 and last traded at $184.69. 202,946 shares changed hands during mid-day trading, a decline of 78% from the average session volume of 926,297 shares. The stock had previously closed at $193.02.

Analyst Ratings Changes

Several research firms have recently weighed in on TXRH. UBS Group raised their price objective on Texas Roadhouse from $200.00 to $220.00 and gave the stock a “buy” rating in a research note on Friday, June 6th. Wells Fargo & Company reduced their price objective on shares of Texas Roadhouse from $175.00 to $170.00 and set an “equal weight” rating for the company in a research note on Tuesday, April 22nd. Stephens reiterated an “equal weight” rating and issued a $170.00 target price on shares of Texas Roadhouse in a report on Tuesday, June 10th. Stifel Nicolaus reduced their price target on shares of Texas Roadhouse from $172.00 to $170.00 and set a “hold” rating for the company in a research report on Tuesday, April 15th. Finally, Wedbush raised their price objective on shares of Texas Roadhouse from $200.00 to $210.00 and gave the stock an “outperform” rating in a research note on Friday, March 28th. Ten analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $191.71.

Texas Roadhouse Trading Down 4.0%

The firm has a market cap of $12.29 billion, a P/E ratio of 28.44, a price-to-earnings-growth ratio of 2.58 and a beta of 0.89. The company’s fifty day moving average price is $181.64 and its two-hundred day moving average price is $178.56.

Texas Roadhouse (NASDAQ:TXRH) last released its earnings results on Thursday, May 8th. The restaurant operator reported $1.70 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.75 by ($0.05). Texas Roadhouse had a net margin of 7.89% and a return on equity of 32.33%. The business had revenue of $1.45 billion for the quarter, compared to analyst estimates of $1.44 billion. During the same quarter in the previous year, the company posted $1.69 earnings per share. The business’s revenue for the quarter was up 11.8% on a year-over-year basis. On average, analysts predict that Texas Roadhouse, Inc. will post 7.23 EPS for the current fiscal year.

Texas Roadhouse Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Tuesday, June 3rd will be given a dividend of $0.68 per share. The ex-dividend date of this dividend is Tuesday, June 3rd. This represents a $2.72 dividend on an annualized basis and a dividend yield of 1.47%. Texas Roadhouse’s dividend payout ratio is 41.98%.

Insider Activity at Texas Roadhouse

In related news, Director Gregory N. Moore sold 1,000 shares of the company’s stock in a transaction on Monday, May 12th. The shares were sold at an average price of $187.62, for a total value of $187,620.00. Following the completion of the transaction, the director now directly owns 38,050 shares of the company’s stock, valued at approximately $7,138,941. This represents a 2.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Donna E. Epps sold 800 shares of Texas Roadhouse stock in a transaction dated Friday, May 23rd. The shares were sold at an average price of $186.52, for a total value of $149,216.00. Following the completion of the sale, the director now directly owns 4,632 shares in the company, valued at $863,960.64. This represents a 14.73% decrease in their position. The disclosure for this sale can be found here. 0.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Texas Roadhouse

A number of large investors have recently modified their holdings of the business. Axiom Investors LLC DE lifted its stake in Texas Roadhouse by 3,696.7% in the 1st quarter. Axiom Investors LLC DE now owns 2,173,807 shares of the restaurant operator’s stock valued at $362,221,000 after purchasing an additional 2,116,552 shares during the last quarter. T. Rowe Price Investment Management Inc. grew its stake in Texas Roadhouse by 209.3% in the 1st 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 during the last quarter. Norges Bank bought a new stake in shares of Texas Roadhouse during the fourth quarter worth approximately $155,239,000. Congress Asset Management Co. boosted its stake in Texas Roadhouse by 8,956.4% in the 1st quarter. Congress Asset Management Co. now owns 465,679 shares of the restaurant operator’s stock valued at $77,596,000 after purchasing an additional 460,537 shares during the period. Finally, AQR Capital Management LLC increased its position in Texas Roadhouse by 54.3% during the 1st quarter. AQR Capital Management LLC now owns 1,261,587 shares of the restaurant operator’s stock worth $209,840,000 after buying an additional 443,767 shares during the period. 94.82% of the stock is currently owned by institutional investors and hedge funds.

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.