How Texas Roadhouse Inc. (TXRH) Works From A Technical Perspective


Texas Roadhouse Inc. (NASDAQ:TXRH) finished Friday with a subtraction of -$1.93 to close at $90.95, a downside of -2.08 percent. An average of 615,240 shares of common stock have been traded in the last five days. There was a fall of -$4.78 in the past week, and it reached a new high 12 times over the past 12 months. The last 20 days have seen an average of 793,685 shares traded, while the 50-day average volume stands at 875,858.

TXRH stock has decreased by -8.43% in the last month. The company shares reached their 1-month lowest point of $90.38 on 12/30/22. With the stock rallying to its 52-week high on 11/11/22, shares of the company touched a low of $68.58 and a high of $101.75 in 52 weeks. It has reached a new high 12 times so far this year and achieved 1.87% or $1.67 in price. In spite of this, the price is down -10.61% from the 52-week high.

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Insider Transactions

TXRH stock investors should be aware that Texas Roadhouse Inc. (TXRH) stock had its last reported insider trading activity 39 days ago on Nov 22. In this transaction, the insider spent $4,144,175. Director, MOORE GREGORY N, disposed of 1,000 shares at a price of $98.31 on Nov 04. The insider now owns more than $98,310 worth of shares. Prior to that, GENERAL COUNSEL Colson Christopher C. went on to Sale 1,357 shares at $94.36 each on Aug 18. An amount of $128,047 was transacted.

Valuation Metrics

Texas Roadhouse Inc. (TXRH) has a trailing price-to-earnings (P/E) ratio of 23.70. The stock’s beta is 0.94. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 1.55, the price-to-book (PB) ratio at 6.22, and the price-to-cash flow ratio at 38.24.

The company has a payout ratio of 23.90%. The company’s most recent quarterly dividend payment was $0.46 a share, without any change from last year. Its latest increase dividend $0.06 reported on Tuesday February 22 2022.

Financial Health

The quick ratio of Texas Roadhouse Inc. for the three months ended September 29 was 0.50, and the current ratio was 0.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.08 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Its gross profit as reported stood at $606.5 million compared to revenue of $3.46 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Texas Roadhouse Inc.’s return on assets was 10.90%.

Earnings Surprise

For the three-month period that ended September 29, Texas Roadhouse Inc. had $75.0 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $62.33 million in the quarter, while revenues of $72.42 million were grew 15.59%. The analyst consensus anticipated Texas Roadhouse Inc.’s latest quarter earnings to come in at $0.89 per share, but it turned out to be $0.93, a 4.50% surprise. For the quarter, EBITDA amounted to $109.02 million. Shareholders own equity worth $66.92 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Texas Roadhouse Inc. (TXRH) price momentum. RSI 9-day as of the close on 30 December was 28.51%, suggesting the stock is oversold, with historical volatility in this time frame at 19.95%.

As of today, TXRH’s price is $93.32 -4.99% or -$4.78 from its 5-day moving average. TXRH is currently trading -9.30% lower than its 20-day SMA and +1.96% higher than its 100-day SMA. However, the stock’s current price level is -5.17% below the SMA50 and +10.55% above the SMA200.

The stochastic %K and %D were 4.27% and 7.42%, respectively, and the average true range (ATR) was 2.38. With the 14-day stochastic at 5.44% and the average true range at 2.48, the RSI (14) stands at 34.38%. The stock has reached -2.26 on the 9-day MACD Oscillator while the 14-day reading was at -3.71.

Analyst Ratings

Deutsche Bank downgraded Texas Roadhouse Inc. (NASDAQ: TXRH) to a a Hold rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Texas Roadhouse Inc. (TXRH) among analysts is Overweight. According to current brokerage recommendations, 1 brokerage firm advise that investors sell TXRH, while 11 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 13 others rate it as a “buy”.


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