Brinker International (NYSE:EAT) Hits New 52-Week High – Still a Buy?

Brinker International, Inc. (NYSE:EAT)’s stock price reached a new 52-week high on Tuesday . The stock traded as high as $133.83 and last traded at $133.77, with a volume of 1053608 shares changing hands. The stock had previously closed at $132.36.

Analyst Ratings Changes

EAT has been the subject of a number of research reports. UBS Group raised their target price on shares of Brinker International from $70.00 to $94.00 and gave the stock a “neutral” rating in a report on Thursday, October 17th. Raymond James cut Brinker International from an “outperform” rating to a “market perform” rating in a report on Thursday, October 17th. Evercore ISI upped their target price on Brinker International from $69.00 to $90.00 and gave the company an “in-line” rating in a report on Tuesday, October 15th. Argus cut Brinker International from a “buy” rating to a “hold” rating in a research note on Tuesday, October 1st. Finally, The Goldman Sachs Group initiated coverage on shares of Brinker International in a research note on Thursday, December 5th. They set a “buy” rating and a $150.00 price objective for the company. One investment analyst has rated the stock with a sell rating, fifteen have given a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average price target of $91.38.

Brinker International Price Performance

The company’s 50-day simple moving average is $111.96 and its 200 day simple moving average is $84.74. The company has a market capitalization of $5.94 billion, a P/E ratio of 32.28, a P/E/G ratio of 1.46 and a beta of 2.51. The company has a quick ratio of 0.26, a current ratio of 0.32 and a debt-to-equity ratio of 63.54.

Brinker International (NYSE:EAT) last released its quarterly earnings data on Wednesday, October 30th. The restaurant operator reported $0.95 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.69 by $0.26. Brinker International had a net margin of 4.11% and a negative return on equity of 839.19%. The business had revenue of $1.14 billion during the quarter, compared to analyst estimates of $1.10 billion. During the same quarter in the previous year, the business earned $0.28 EPS. Brinker International’s quarterly revenue was up 12.5% compared to the same quarter last year. As a group, sell-side analysts expect that Brinker International, Inc. will post 5.43 earnings per share for the current fiscal year.

Insider Activity

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Empowered Funds LLC bought a new position in shares of Brinker International in the third quarter worth about $5,330,000. Intech Investment Management LLC boosted its stake in Brinker International by 399.9% during 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 period. Qsemble Capital Management LP acquired a new stake in Brinker International in the 3rd quarter valued at approximately $941,000. Principal Financial Group Inc. increased its position 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 worth $20,879,000 after buying an additional 51,927 shares during the period. Finally, Janney Montgomery Scott LLC acquired a new position in shares of Brinker International during the third quarter worth approximately $2,273,000.

About Brinker International

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.