Brinker International (NYSE:EAT) Shares Gap Up Following Strong Earnings

Shares of Brinker International, Inc. (NYSE:EAT) gapped up prior to trading on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $154.61, but opened at $176.58. Brinker International shares last traded at $176.31, with a volume of 1,197,838 shares trading hands.

The restaurant operator reported $2.80 earnings per share for the quarter, topping the consensus estimate of $1.37 by $1.43. Brinker International had a net margin of 4.11% and a negative return on equity of 839.19%.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the company. KeyCorp downgraded Brinker International from an “overweight” rating to a “sector weight” rating and set a $115.00 price target for the company. in a research report on Friday, January 24th. BMO Capital Markets lifted their price target on shares of Brinker International from $105.00 to $125.00 and gave the stock a “market perform” rating in a research note on Monday. UBS Group upped their price target on shares of Brinker International from $108.00 to $146.00 and gave the company a “neutral” rating in a report on Tuesday, January 7th. JPMorgan Chase & Co. downgraded shares of Brinker International from an “overweight” rating to a “neutral” rating and raised their price objective for the stock from $67.00 to $100.00 in a research note on Thursday, October 31st. Finally, Barclays increased their price target on Brinker International from $143.00 to $150.00 and gave the stock an “equal weight” rating in a report on Friday, January 24th. Sixteen analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $111.29.

Insiders Place Their Bets

In related news, CFO Michaela M. Ware sold 3,753 shares of the business’s stock in a transaction on Thursday, October 31st. The shares were sold at an average price of $103.02, for a total value of $386,634.06. Following the completion of the sale, the chief financial officer now owns 23,071 shares of the company’s stock, valued at approximately $2,376,774.42. The trade was a 13.99 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 1.72% of the stock is currently owned by company insiders.

Institutional Trading of Brinker International

Institutional investors have recently made changes to their positions in the company. Principal Financial Group Inc. boosted its holdings in Brinker International by 23.5% in the 3rd quarter. Principal Financial Group Inc. now owns 272,822 shares of the restaurant operator’s stock valued at $20,879,000 after purchasing an additional 51,927 shares during the last quarter. Empowered Funds LLC purchased a new stake in Brinker International in the third quarter valued at $5,330,000. Intech Investment Management LLC lifted its stake in shares of Brinker International by 399.9% in the 3rd quarter. Intech Investment Management LLC now owns 24,102 shares of the restaurant operator’s stock valued at $1,845,000 after purchasing an additional 19,281 shares during the last quarter. Qsemble Capital Management LP acquired a new stake in shares of Brinker International during the 3rd quarter worth about $941,000. Finally, Janney Montgomery Scott LLC acquired a new position in Brinker International in the third quarter valued at about $2,273,000.

Brinker International Trading Up 14.3 %

The company has a quick ratio of 0.26, a current ratio of 0.32 and a debt-to-equity ratio of 63.54. The business has a 50-day simple moving average of $135.89 and a 200-day simple moving average of $100.11. The company has a market cap of $7.85 billion, a PE ratio of 43.38, a price-to-earnings-growth ratio of 1.56 and a beta of 2.52.

Brinker International Company Profile

Brinker International, Inc, together with its subsidiaries, engages in the ownership, development, operation, and franchising of casual dining restaurants in the United States and internationally. It operates and franchises Chili's Grill & Bar and Maggiano's Little Italy restaurant brands.