Texas Roadhouse Inc (NASDAQ:TXRH) was the recipient of a large increase in short interest in March. As of March 13th, there was short interest totalling 5,074,300 shares, an increase of 50.1% from the February 27th total of 3,380,000 shares. Approximately 7.8% of the company’s stock are short sold. Based on an average trading volume of 1,708,700 shares, the days-to-cover ratio is currently 3.0 days.
In related news, CMO S. Chris Jacobsen sold 2,500 shares of the business’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $65.00, for a total transaction of $162,500.00. Following the completion of the transaction, the chief marketing officer now owns 21,950 shares in the company, valued at approximately $1,426,750. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 5.89% of the company’s stock.
Several hedge funds have recently added to or reduced their stakes in TXRH. First Trust Advisors LP raised its holdings in shares of Texas Roadhouse by 27.7% during the first quarter. First Trust Advisors LP now owns 63,746 shares of the restaurant operator’s stock worth $3,964,000 after purchasing an additional 13,833 shares during the last quarter. Executive Wealth Management LLC grew its position in Texas Roadhouse by 4.6% during the 3rd quarter. Executive Wealth Management LLC now owns 20,067 shares of the restaurant operator’s stock worth $1,053,000 after purchasing an additional 884 shares during the period. Public Employees Retirement System of Ohio raised its stake in shares of Texas Roadhouse by 3.8% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 99,020 shares of the restaurant operator’s stock valued at $5,201,000 after buying an additional 3,580 shares during the last quarter. Coldstream Capital Management Inc. raised its stake in shares of Texas Roadhouse by 4.9% during the 3rd quarter. Coldstream Capital Management Inc. now owns 4,247 shares of the restaurant operator’s stock valued at $224,000 after buying an additional 200 shares during the last quarter. Finally, Ambassador Advisors LLC acquired a new position in shares of Texas Roadhouse in the 3rd quarter valued at about $9,729,000. 89.17% of the stock is currently owned by institutional investors and hedge funds.
Texas Roadhouse (NASDAQ:TXRH) last issued its earnings results on Thursday, February 20th. The restaurant operator reported $0.61 EPS for the quarter, beating the Zacks’ consensus estimate of $0.52 by $0.09. Texas Roadhouse had a return on equity of 18.69% and a net margin of 6.33%. The firm had revenue of $725.20 million for the quarter, compared to analyst estimates of $713.68 million. During the same quarter in the prior year, the firm earned $0.42 earnings per share. Texas Roadhouse’s revenue for the quarter was up 19.7% on a year-over-year basis. As a group, equities analysts anticipate that Texas Roadhouse will post 2.56 EPS for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Shareholders of record on Wednesday, March 11th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 3.25%. This is a boost from Texas Roadhouse’s previous quarterly dividend of $0.30. The ex-dividend date of this dividend is Tuesday, March 10th. Texas Roadhouse’s payout ratio is presently 58.54%.
Several brokerages recently weighed in on TXRH. Gordon Haskett upgraded Texas Roadhouse from an “underperform” rating to a “buy” rating and set a $54.00 target price on the stock in a research note on Wednesday. UBS Group increased their price target on Texas Roadhouse from $60.00 to $64.00 and gave the company a “neutral” rating in a research note on Tuesday, February 18th. Telsey Advisory Group raised their price target on Texas Roadhouse from $66.00 to $72.00 and gave the stock a “market perform” rating in a report on Friday, February 21st. Wells Fargo & Co restated a “hold” rating and set a $64.00 price target (up previously from $59.00) on shares of Texas Roadhouse in a research note on Friday, February 21st. Finally, Stifel Nicolaus dropped their price target on Texas Roadhouse from $70.00 to $62.00 and set a “hold” rating on the stock in a research note on Wednesday, March 11th. Three analysts have rated the stock with a sell rating, thirteen have issued a hold rating, six have issued a buy rating and two have assigned a strong buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $65.67.
About Texas Roadhouse
Texas Roadhouse, Inc, together with its subsidiaries, operates casual dining restaurants in the United States and internationally. The company operates and franchises Texas Roadhouse and Bubba's 33 restaurants. As of April 29, 2019, it owned and operated approximately 590 restaurants. Texas Roadhouse, Inc was founded in 1993 and is based in Louisville, Kentucky.
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