Brinker International (NYSE:EAT) Shares Gap Down – What’s Next?

Brinker International, Inc. (NYSE:EAT)’s stock price gapped down before the market opened on Friday . The stock had previously closed at $154.52, but opened at $151.07. Brinker International shares last traded at $149.28, with a volume of 169,834 shares.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on EAT. Wells Fargo & Company boosted their target price on Brinker International from $130.00 to $145.00 and gave the stock an “equal weight” rating in a research note on Thursday. Argus upgraded Brinker International from a “hold” rating to a “buy” rating and set a $150.00 target price on the stock in a research report on Tuesday, December 24th. Piper Sandler raised their price target on Brinker International from $62.00 to $97.00 and gave the stock a “neutral” rating in a research note on Monday, November 4th. The Goldman Sachs Group assumed coverage on Brinker International in a report on Thursday, December 5th. They issued a “buy” rating and a $150.00 price objective for the company. Finally, Morgan Stanley raised shares of Brinker International from an “underweight” rating to an “equal weight” rating and lifted their target price for the company from $70.00 to $115.00 in a report on Friday, December 20th. Sixteen analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $109.45.

Brinker International Stock Performance

The company has a market capitalization of $6.63 billion, a PE ratio of 36.40, a PEG ratio of 1.56 and a beta of 2.52. The stock’s fifty day simple moving average is $134.01 and its 200-day simple moving average is $97.84. 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 results on Wednesday, October 30th. The restaurant operator reported $0.95 EPS for the quarter, beating the consensus estimate of $0.69 by $0.26. The business had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.10 billion. Brinker International had a net margin of 4.11% and a negative return on equity of 839.19%. The company’s quarterly revenue was up 12.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.28 earnings per share. On average, research analysts predict that Brinker International, Inc. will post 5.96 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CFO Michaela M. Ware sold 3,753 shares of the company’s stock in a transaction on Thursday, October 31st. The stock was 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 in the company, valued at $2,376,774.42. This represents a 13.99 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. 1.72% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Caprock Group LLC purchased a new stake in shares of Brinker International during the fourth quarter valued at approximately $310,000. Hunter Associates Investment Management LLC acquired a new stake in shares of Brinker International during the 4th quarter valued at approximately $281,000. R Squared Ltd acquired a new position in shares of Brinker International in the 4th quarter valued at about $83,000. Nilsine Partners LLC grew its position in shares of Brinker International by 13.1% during the 4th quarter. Nilsine Partners LLC now owns 2,966 shares of the restaurant operator’s stock valued at $392,000 after buying an additional 344 shares during the last quarter. Finally, KBC Group NV boosted its stake in Brinker International by 46.9% in the fourth quarter. KBC Group NV now owns 1,844 shares of the restaurant operator’s stock valued at $244,000 after acquiring an additional 589 shares during the period.

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.