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

Brinker International, Inc. (NYSE:EAT) gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 traded.

The restaurant operator reported $2.80 earnings per share for the quarter, topping analysts’ consensus estimates 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 brokerages recently issued reports on EAT. Barclays upped their target price on Brinker International from $143.00 to $150.00 and gave the company an “equal weight” rating in a research report on Friday, January 24th. Stifel Nicolaus increased their price objective on Brinker International from $155.00 to $170.00 and gave the company a “buy” rating in a report on Monday. Raymond James lowered shares of Brinker International from an “outperform” rating to a “market perform” rating in a research report on Thursday, October 17th. Argus upgraded shares of Brinker International from a “hold” rating to a “buy” rating and set a $150.00 price target for the company in a research report on Tuesday, December 24th. Finally, Bank of America raised their price objective on shares of Brinker International from $97.00 to $110.00 and gave the stock a “neutral” rating in a research report on Thursday, October 31st. Sixteen equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $111.29.

Insider Activity at Brinker International

In other Brinker International news, CFO Michaela M. Ware sold 3,753 shares of the company’s stock in a transaction dated 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 transaction, the chief financial officer now directly owns 23,071 shares of the company’s stock, 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 the SEC website. 1.72% of the stock is owned by insiders.

Hedge Funds Weigh In On Brinker International

Several institutional investors and hedge funds have recently made changes to their positions in the business. Hennessy Advisors Inc. bought a new stake in shares of Brinker International during the 4th quarter valued at about $81,888,000. Assenagon Asset Management S.A. grew its holdings in shares of Brinker International by 2,612.4% during the fourth quarter. Assenagon Asset Management S.A. now owns 588,594 shares of the restaurant operator’s stock valued at $77,865,000 after purchasing an additional 566,894 shares during the last quarter. Wedge Capital Management L L P NC raised its position in shares of Brinker International by 1,145.2% during the 4th quarter. Wedge Capital Management L L P NC now owns 416,044 shares of the restaurant operator’s stock worth $55,038,000 after purchasing an additional 382,633 shares during the period. Wellington Management Group LLP raised its position in shares of Brinker International by 55.1% during the 3rd quarter. Wellington Management Group LLP now owns 618,728 shares of the restaurant operator’s stock worth $47,351,000 after purchasing an additional 219,836 shares during the period. Finally, Jacobs Levy Equity Management Inc. acquired a new position in Brinker International during the 3rd quarter valued at approximately $14,611,000.

Brinker International Stock Performance

The company has a debt-to-equity ratio of 63.54, a quick ratio of 0.26 and a current ratio of 0.32. The stock has a 50 day moving average of $135.89 and a 200 day moving average of $100.11. The stock has a market capitalization of $7.85 billion, a P/E ratio of 43.38, a P/E/G 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.