The stock of Brinker International Inc. (NYSE:EAT) decreased by -$0.34 on Tuesday to finish at $36.37, down -0.93 percent. The last five days have seen an average of 1,357,680 shares of common stock traded. 14 times new highs were reached in the current year, with a gain of $4.46. The average number of shares traded over the last 20 days was 891,310, while the average volume over the last 50 days totaled 938,942.
EAT stock dropped -2.65% since last month. On 08/15/23, the company’s shares reached a one-month low of $35.92. The stock touched a high of $42.12 on 02/16/23, after rallying from a low of $23.66 in 52 weeks. The price of EAT stock has risen by 13.98% or $4.46 this year, reaching a new high 14 times. Still, the stock price is down -13.65% from the 52-week high.
Insider Transactions
EAT stock investors should be aware that Brinker International Inc. (EAT) stock had its last reported insider trading activity 189 days ago on Feb 08. On Feb 08, SVP & COO, Chili’s Comings Douglas N. sold 500 shares at $40.51 each. This transaction resulted in the insider making $20,255. On Feb 08, Allen Wade sold 347 shares at a price of US$40.73. After the transaction, the insider now owns 24,763 shares. SVP, Chief Digital Officer Allen Wade had earlier sold 3,537 shares on Feb 07 for $39.94 a share. The transaction was completed for $141,268.
Valuation Metrics
Brinker International Inc. (EAT) has a trailing price-to-earnings (P/E) ratio of 18.52. Beta for the stock is 2.37. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.41, and the price-to-cash flow ratio of 26.08.
Company paid $0.38 per share in dividends, remained unchanged from $0.38 last year.
Financial Health
For the three months ended March 30, Brinker International Inc.’s quick ratio was 0.30, while its current ratio was 0.40, indicating its inability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 11.80% percent. Brinker International Inc.’s operating margin stood at 3.20% for the same period. Based on annual data, it had gross profit of $499.2 million and revenue of $3.8 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. EAT’s return on assets (ROA) during the last 12 months has been 3.60%. There was a 21.80% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -34.00%.
Earnings Surprise
According to Brinker International Inc.’s quarterly financial report for the quarter that ended March 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $1.08 billion, while revenues rose by 9.49% to $1.02 billion. It was predicted that Brinker International Inc.’s quarterly earnings would be $1.23, but it ended up being $1.19, beating the consensus by 3.40%. EBITDA was $106.7 million for the quarter. At the end of Brinker International Inc.’s most recent quarter ended March 30, its liabilities totaled 2.69 billion, while its total debt was $2.17 billion. Equity owned by shareholders amounts to $44.3 million.
Technical Picture
Here’s a quick look at Brinker International Inc.’s (EAT) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 29.30%, suggesting the stock is oversold, with a 20.58% historical volatility rate.
The stochastic %K and %D were 12.54% and 23.87% respectively, while the average true range (ATR) was 1.27. Based on the 14-day stochastic reading of 10.56%, the RSI (14) reading is 37.95%. On the 9-day MACD Oscillator, the stock is at -1.36, and the 14-day reading is at -1.58.
Analyst Ratings
In its analyst report released on July 18, 2023, Piper Sandler began covering Brinker International Inc. (NYSE: EAT). The stock was rated as a Neutral by the brokerage firm. Analysts have assigned Brinker International Inc. (EAT) an Hold rating. EAT is a stock that is recommended for selling by 1 brokerage firm, while 15 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 1 rate it overweight and 2 others recommend it as a buy.
What is EAT’s price target for the next 12 months?
The current consensus forecast for the stock is between $31.00 and $45.00, with a median target price of $39.00. In analyzing these forecasts, the average price target given by analysts for Brinker International Inc. (EAT) is $39.06.
