It’s still a bull thesis, just subverted: Texas Roadhouse Inc (TXRH)

At the time of writing, Texas Roadhouse Inc [TXRH] stock is trading at $175.71, up 0.47%. Until recently, the best way to gauge how the stock has performed was to look at its short-term value. The TXRH shares have gain 0.97% over the last week, with a monthly amount drifted -3.02%, and not seem to be holding up well over a long-time horizon.

From an analyst’s perspective:

Texas Roadhouse Inc [NASDAQ: TXRH] stock has seen the most recent analyst activity on January 21, 2025, when Morgan Stanley upgraded its rating to a Overweight and also boosted its price target to $213 from $205. Previously, Gordon Haskett downgraded its rating to Hold on January 08, 2025, and kept the price target unchanged to $192. On December 05, 2024, Goldman initiated with a Neutral rating and assigned a price target of $213 on the stock. The Benchmark Company initiated its recommendation with a Hold. Robert W. Baird upgraded its rating to Outperform for this stock on March 13, 2024, and upped its price target to $175. In a note dated February 20, 2024, Northcoast downgraded an Neutral rating on this stock.

For the past year, the stock price of Texas Roadhouse Inc fluctuated between $146.75 and $206.04. Currently, Wall Street analysts expect the stock to reach $204.5 within the next 12 months. Texas Roadhouse Inc [NASDAQ: TXRH] shares were valued at $175.71 at the most recent close of the market. An investor can expect a potential return of 16.38% based on the average TXRH price forecast.

Analyzing the TXRH fundamentals

According to Texas Roadhouse Inc [NASDAQ:TXRH], the company’s sales were 5.37B for trailing twelve months, which represents an 23.49% jump. Gross Profit Margin for this corporation currently stands at 0.15% with Operating Profit Margin at 0.1%, Pretax Profit Margin comes in at 0.09%, and Net Profit Margin reading is 0.08%. To continue investigating profitability, this company’s Return on Assets is posted at 0.13, Equity is 0.32 and Total Capital is 0.21. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 0.64.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 174.15 points at the first support level, and at 172.59 for the second support level. However, for the 1st resistance point, the stock is sitting at 177.87, and for the 2nd resistance point, it is at 180.03.

Ratios To Look Out For

It is important to note that Texas Roadhouse Inc [NASDAQ:TXRH] has a current ratio of 0.62. As well, the Quick Ratio is 0.43, while the Cash Ratio is 0.3. Considering the valuation of this stock, the price to sales ratio is 2.18, the price to book ratio is 8.96 and price to earnings (TTM) ratio is 27.16.

Transactions by insiders

Recent insider trading involved Mujica Hernan E., CHIEF TECHNOLOGY OFFICER, that happened on Feb 24 ’25 when 2050.0 shares were sold. Director, MOORE GREGORY N completed a deal on Feb 24 ’25 to sell 2700.0 shares. Meanwhile, Officer Mujica Hernan E. bought 2050.0 shares on Feb 24 ’25.

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