Texas Roadhouse Q3 EPS Misses by $0.03 on 12.8% Revenue Growth, Institutional Stake Changes
In Q3, Texas Roadhouse reported $1.25 EPS, missing the $1.28 consensus, on $1.44B revenue, up 12.8% year-over-year. Braun Stacey Associates cut its stake by 8.5% to 125,764 shares worth $20.9M, while Axiom Investors boosted its holding 3,696.7% to 2.17M shares valued at $362.2M.
1. Institutional Stake Adjustments
In the third quarter, Braun Stacey Associates Inc. reduced its position in Texas Roadhouse by 8.5%, selling 11,632 shares to hold 125,764 shares valued at approximately $20.9 million, representing 0.19% of the company’s outstanding stock. Other notable moves include Axiom Investors LLC DE increasing its stake by 3,696.7% to 2,173,807 shares worth $362.2 million after adding 2,116,552 shares in the first quarter, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosting its holding by 2,515.2% to 417,045 shares valued at $78.2 million, Roundview Capital LLC entering with a new stake valued at $1.48 million, Symphony Financial Ltd. Co. initiating a $28.5 million position, and NorthRock Partners LLC acquiring a new $0.28 million exposure. Institutional ownership now stands at 94.82%.
2. Insider Transactions
During early December, Director Hugh J. Carroll sold 1,000 shares for a total of $167,270, trimming his stake by 35.04% to 1,854 shares, and Director Gregory N. Moore sold 1,400 shares for $238,000, reducing his holding by 4.17% to 32,150 shares. Insiders collectively own 0.50% of the company’s stock, highlighting recent shifts in internal share ownership and providing insight into executive sentiment.
3. Analyst Ratings and Price Targets
Wall Street sentiment remains cautiously optimistic: UBS Group reiterated its Buy rating, Mizuho upgraded to Strong Buy, Evercore ISI lowered to In-Line with a $190 target, Barclays set an Equal Weight rating with a $170 target, and Goldman Sachs maintained Neutral with an $180 target. Among 23 analysts covering the name, two signal Strong Buy, eleven Buy, nine Hold and one Sell, reflecting a Moderate Buy consensus and an average target of $194.26.
4. Recent Earnings Performance and Dividend Policy
In its latest quarterly report, Texas Roadhouse posted earnings of $1.25 per share, narrowly missing the consensus by $0.03, on revenue of $1.44 billion, up 12.8% year-over-year. The company delivered a return on equity of 30.59% and a net margin of 7.49%. Management declared a quarterly dividend of $0.68 per share, payable December 30 to holders of record on December 2, translating to an annualized payout of $2.72 and a yield of 1.6%, with a payout ratio of 41.6%.