Texas Roadhouse (NASDAQ:TXRH) Upgraded to “Hold” at Wall Street Zen

Wall Street Zen upgraded shares of Texas Roadhouse (NASDAQ:TXRH) from a sell rating to a hold rating in a research report sent to investors on Saturday morning.

A number of other research analysts have also recently commented on the company. Wells Fargo & Company boosted their price objective on Texas Roadhouse from $195.00 to $220.00 and gave the stock an “overweight” rating in a research note on Thursday, January 22nd. BMO Capital Markets reiterated a “market perform” rating and set a $165.00 target price on shares of Texas Roadhouse in a report on Friday. Morgan Stanley upped their price target on Texas Roadhouse from $205.00 to $208.00 and gave the stock an “overweight” rating in a report on Tuesday, January 20th. Zacks Research upgraded shares of Texas Roadhouse from a “strong sell” rating to a “hold” rating in a research note on Thursday, January 8th. Finally, KeyCorp reissued a “sector weight” rating on shares of Texas Roadhouse in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat, Texas Roadhouse presently has a consensus rating of “Moderate Buy” and an average target price of $196.82.

Texas Roadhouse Stock Down 2.0%

Shares of TXRH stock opened at $178.82 on Friday. Texas Roadhouse has a fifty-two week low of $148.73 and a fifty-two week high of $199.99. The firm’s 50 day moving average price is $180.81 and its two-hundred day moving average price is $173.48. The stock has a market cap of $11.83 billion, a price-to-earnings ratio of 29.36, a price-to-earnings-growth ratio of 2.92 and a beta of 0.88.

Texas Roadhouse (NASDAQ:TXRH) last issued its earnings results on Thursday, February 19th. The restaurant operator reported $1.28 EPS for the quarter, missing analysts’ consensus estimates of $1.53 by ($0.25). Texas Roadhouse had a net margin of 6.90% and a return on equity of 28.05%. The business had revenue of $1.48 billion during the quarter, compared to analysts’ expectations of $1.50 billion. During the same period in the prior year, the business posted $1.73 EPS. The business’s revenue was up 3.1% on a year-over-year basis. On average, equities analysts forecast that Texas Roadhouse will post 7.23 EPS for the current fiscal year.

Texas Roadhouse Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Tuesday, March 17th will be paid a $0.75 dividend. This represents a $3.00 dividend on an annualized basis and a dividend yield of 1.7%. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.68. The ex-dividend date is Tuesday, March 17th. Texas Roadhouse’s payout ratio is presently 44.66%.

Insider Buying and Selling at Texas Roadhouse

In other news, Director Gregory N. Moore sold 1,400 shares of the company’s stock in a transaction dated Wednesday, December 3rd. The shares were sold at an average price of $170.00, for a total value of $238,000.00. Following the sale, the director owned 32,150 shares in the company, valued at approximately $5,465,500. This represents a 4.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Gerald L. Morgan sold 5,000 shares of Texas Roadhouse stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $196.00, for a total value of $980,000.00. Following the completion of the transaction, the chief executive officer owned 91,774 shares of the company’s stock, valued at $17,987,704. This trade represents a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 12,400 shares of company stock worth $2,320,920 in the last ninety days. 0.50% of the stock is owned by insiders.

Institutional Trading of Texas Roadhouse

Several institutional investors and hedge funds have recently bought and sold shares of TXRH. Caldwell Trust Co acquired a new position in shares of Texas Roadhouse in the 2nd quarter worth approximately $28,000. Elyxium Wealth LLC bought a new position in Texas Roadhouse during the fourth quarter worth $25,000. Princeton Global Asset Management LLC acquired a new position in Texas Roadhouse in the fourth quarter worth $31,000. Measured Wealth Private Client Group LLC bought a new stake in Texas Roadhouse during the third quarter valued at $33,000. Finally, Garton & Associates Financial Advisors LLC bought a new stake in Texas Roadhouse during the fourth quarter valued at $34,000. Institutional investors and hedge funds own 94.82% of the company’s stock.

Trending Headlines about Texas Roadhouse

Here are the key news stories impacting Texas Roadhouse this week:

• Positive Sentiment: Company outlook/guide helped calm markets—management’s forward commentary and guidance were framed as constructive, which investors said helped offset the Q4 EPS miss. Investing.com: Outlook offsets earnings miss
• Positive Sentiment: Dividend increase: TXRH raised its quarterly dividend to $0.75 (a ~10.3% raise vs. prior $0.68), boosting yield and shareholder income — a supportive signal for income?oriented investors. GlobeNewswire: Q4 results & dividend
• Positive Sentiment: Some analysts remain bullish—BTIG reaffirmed a “buy” and a $200 target, signaling upside from some street participants despite the miss. Benzinga: BTIG reaffirms buy
• Positive Sentiment: Stephens raised its price target from $168 to $180 (equal weight), a modest vote of confidence that some firms see value after the quarter. Benzinga: Stephens raises target
• Neutral Sentiment: Explainers and context pieces are circulating that help frame the move—articles examining why TXRH didn’t plunge on a ~25% EPS decline offer context that may limit knee?jerk selling. Seeking Alpha: Why the stock didn’t drop
• Neutral Sentiment: Analyst/narrative pieces (Zacks/MarketBeat/Yahoo) are re?pricing the story—investors are parsing same?store trends, unit growth and DCF upside, producing mixed takes rather than a clear consensus. Zacks: Q4 metrics vs estimates
• Negative Sentiment: Q4 earnings and revenue missed consensus — TXRH reported $1.28 EPS vs. ~$1.53 expected and $1.48B revenue vs. ~$1.50B, a decline from prior year EPS; that shortfall is the primary driver of the intra?day weakness. MarketBeat: Q4 earnings report
• Negative Sentiment: Margin pressure from higher commodity costs — management flagged rising food/commodity inflation that pulled margins lower, a recurring risk for restaurant operators that can pressure near?term profitability. Seeking Alpha: Commodity costs hurt margins
• Negative Sentiment: Some analysts trimmed price targets and ratings (Citigroup lowered PT to $184/neutral; Truist trimmed to $186/hold), which can weigh on sentiment even if cuts are modest. Benzinga: Citi and Truist adjustments

Texas Roadhouse Company Profile

Texas Roadhouse, Inc is a casual dining restaurant chain specializing in hand?cut steaks, fall?off?the?bone ribs, chicken, seafood and house specialties. Each restaurant features a Western?themed décor, open kitchens and a signature line dance presentation of fresh, made?from?scratch sides and breads. The company emphasizes an energetic dining experience, focusing on hospitality, value and a family?friendly environment.

The concept was created in 1993 by founder Kent Taylor, who sought to combine high?quality steaks with an approachable, community?oriented atmosphere.