Brinker International (NYSE:EAT) Stock Price Down 6.2% – Here’s Why

Brinker International, Inc. (NYSE:EAT) dropped 6.2% during trading on Tuesday. The stock traded as low as $190.43 and last traded at $191.0010. 149,617 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 1,205,448 shares. The stock had previously closed at $203.53.

Analyst Ratings Changes

EAT has been the subject of several research reports. Seaport Research Partners began coverage on shares of Brinker International in a research note on Wednesday, September 16th. They set a “buy” rating and a $230.00 price objective for the company. UBS Group raised their target price on shares of Brinker International from $190.00 to $260.00 and gave the company a “buy” rating in a research note on Monday, August 10th. Jefferies Financial Group upgraded Brinker International from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $230.00 to $255.00 in a research note on Wednesday, October 14th. Freedom Broker raised shares of Brinker International to a “strong-buy” rating in a research report on Friday, September 18th. Finally, BMO Capital Markets boosted their price target on Brinker International from $175.00 to $230.00 and gave the stock a “market perform” rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $249.80.

Brinker International Stock Performance

The company has a market capitalization of $8.32 billion, a price-to-earnings ratio of 17.64, a P/E/G ratio of 0.98 and a beta of 1.37. The company has a quick ratio of 0.29, a current ratio of 0.34 and a debt-to-equity ratio of 1.13. The stock has a 50 day simple moving average of $204.29 and a 200 day simple moving average of $176.36.

Brinker International (NYSE:EAT) last issued its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $2.77 EPS for the quarter, topping analysts’ consensus estimates of $2.45 by $0.32. The firm had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.46 billion. Brinker International had a return on equity of 125.65% and a net margin of 8.44%. The firm’s revenue was up 9.4% on a year-over-year basis. During the same period in the prior year, the business earned $2.17 EPS. As a group, analysts anticipate that Brinker International, Inc. will post 13.70 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Brinker International news, EVP George S. Felix sold 14,349 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $237.47, for a total transaction of $3,407,457.03. Following the transaction, the executive vice president owned 6,293 shares of the company’s stock, valued at approximately $1,494,398.71. This trade represents a 69.51% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Kevin Hochman sold 40,000 shares of the firm’s stock in a transaction that occurred on Monday, August 17th. The shares were sold at an average price of $243.15, for a total transaction of $9,726,000.00. Following the transaction, the chief executive officer owned 144,090 shares in the company, valued at $35,035,483.50. This represents a 21.73% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 167,955 shares of company stock worth $39,335,764. 1.18% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. BlackRock Inc. grew its position in Brinker International by 2.2% in the second quarter. BlackRock Inc. now owns 6,729,477 shares of the restaurant operator’s stock worth $1,130,552,000 after buying an additional 145,525 shares during the last quarter. State Street Corp boosted its stake in Brinker International by 3.5% in the 2nd quarter. State Street Corp now owns 1,748,760 shares of the restaurant operator’s stock worth $293,786,000 after purchasing an additional 59,120 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in Brinker International by 0.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 1,170,612 shares of the restaurant operator’s stock worth $167,128,000 after purchasing an additional 9,692 shares during the period. Freestone Grove Partners LP purchased a new position in Brinker International during the 2nd quarter worth approximately $91,237,000. Finally, Wellington Management Group LLP grew its position in Brinker International by 63.7% during the 2nd quarter. Wellington Management Group LLP now owns 413,472 shares of the restaurant operator’s stock worth $69,463,000 after purchasing an additional 160,939 shares in the last quarter.

About Brinker International

Brinker International, Inc. is a casual-dining restaurant company based in Dallas, Texas. It owns, operates and franchises restaurants under the Chili’s Grill & Bar and Maggiano’s Little Italy brands. Chili’s serves a broad menu of American and Tex-Mex-inspired dishes, including burgers, ribs and fajitas. Maggiano’s specializes in Italian-American cuisine, with dishes such as pasta and other classic entrées. The company traces its roots to 1975, when founder Norman Brinker opened the first Chili’s restaurant in Dallas.