The financial market is a complex labyrinth, where companies come and go as they struggle against one another for a slice of the profit pie. Amidst all this economic hustle, certain companies attract more interest than others, becoming focal points for investors seeking profitable opportunities to grow their wealth. One such company that has recently garnered attention is Texas Roadhouse, Inc. (NASDAQ:TXRH), a popular restaurant operator.
According to investment management firm Raymond James Financial Services Advisors Inc., the company’s stock position rose by an impressive 89.8% in Q4 2020, with its ranking rising from 18,428 shares to 27,147 over the period. As of its latest filing with the Securities and Exchange Commission (SEC), Texas Roadhouse was worth $1,676,000 in terms of market value.
In consonance with these revelations before us is TXRH’s recently released quarterly earnings report figures on May 4th. The report showed that although revenue brought in increased significantly by about 18.9%, it fell short of expectations at $1.17 billion compared to analyst estimates of $1.15 billion. Despite this dip in revenues and negative net margins at 6.69%, we saw some glimmer of hope as return on equity figures clocked in at an impressive 27.79%.
Many research firms have examined TXRH’s viability as an investment option given recent fluctuations within the market space; StockNews.com downgraded shares from a “buy” rating to accumulating towards a “hold” status while Credit Suisse Group raised target prices from $115 up to $123 per share reflecting the assertive nature currently associated with TXRH’s stocks.
Texas Roadhouse produced ecstatic growth rates during some quarters last year but missed expected earning targets last quarter which causes skepticism regarding how next few months will fare ultimately making it crucial for both potential and existing investors of this stock to pay close attention going forward. Nevertheless, TXRH remains an actual possibility for investment as its stocks are poised to bloom over the next couple of months according to market analysts, with an average target price point hovering at $112.72 per share- a figure indicative of positive momentum in the market space and continued growth potential for the company.
Investors Stay Mindful as Texas Roadhouse Boasts Impressive Growth and Dividend Plans
The restaurant industry often evokes nostalgia, good times around the table and most importantly, comfort food. Texas Roadhouse is no exception to this rule. The company was founded in 1993, with its first location opening in Clarksville, Indiana. Today it boasts over 500 locations worldwide, proving that people love their ribs and steak just as much as they did 25 years ago.
Recently, there have been many reports of large investors buying and selling positions within the company. Ellevest Inc., Neo Ivy Capital Management and Signaturefd LLC are just a few who made significant moves recently, growing their holdings by up to 121.8%. As of May 8th, UBS Group lifted their target price on Texas Roadhouse from $110.00 to $127.00 per share.
In light of such positive market sentiment for TXRH stock however, a research report by StockNews.com downgraded shares of Texas Roadhouse from a “buy” rating to a “hold” rating on Friday May 19th; perhaps indicating some skepticism regarding the stock’s future potential growth.
For smart investors seeking reliable dividends due to concerns about economic instability or any possible volatile market conditions ahead, TXRH may be an attractive choice- especially now that the company has revealed it recently disclosed plans to issue its next quarterly dividend which will be paid out later this month (June 2017). Investors will be receiving a dividend payout of $0.55 per share on June 23rd after record cut off date is due on June 7th.
Corporate insiders are also making transactions according to reports filed with the SEC website including Director Kathy Widmer selling approximately $211k worth of shares earlier in Q1 this year across two separate trades at an average price point of $105.46 per share.
Texas Roadhouse’s success has not gone unnoticed but there remains something grounded about a business whose daily focus is serving warm bread, mouth-watering ribs and cooked-to-perfection steak. The company is currently trading at $111.61 as of Friday, May 26th 2017; a truly impressive valuation for a nationwide restaurant chain.
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