Texas Roadhouse Inc. [NASDAQ:TXRH]’s prices rallied on Friday.
Other data for the company is as follows:
- Stochastic %K of 96.89
- Weighted Alpha of 48.1
Day traders should note that the company’s next earning date is 10/28/2020. The company has price per sales of 1.93.
Wait and see
Holding a Market Cap of $4.84 billion, Texas Roadhouse Inc. has seen a trading range over the last year of $25.15-$72.49.
For the last five days, TXRH is up from its last closing price. The average shares trading hands each day is 921.29K, with average 10-day volume coming in at 0.88 million.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for TXRH. When we apply the Elder Force Index to Texas Roadhouse Inc., we are seeing an Elder Force Indicator number of 1249438.8.
The recent performance of the stock is another area that can tell traders how to proceed. TXRH is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 30.80. Moreover, the company’s enterprise value has gone from $4.18B to $3.31B quarter-over-quarter. Obviously, the company is heading in the wrong direction, but there are still opportunities for growth in the sector.
In the last quarter, TXRH made a profit of 15.16 million. Texas Roadhouse Inc. also saw quarter revenue growth year over year of 12.16%. In addition, the company has operating cash flow of $249.13 million.
Looking at popular technical indicators, the company’s 5-day moving average is 69.58 compared to the 50-day moving average of 63.79. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. TXRH currently holds a 9-day RSI of 80.48%, while 100-day RSI stands at 56.03%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. TXRH’s 9-day MACD is 3.97 and the company’s 100-day MACD stands at 13.03.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 6.37% by insiders and 91.13% by institutions. Regarding institutional holdings, Blackrock Inc. owns 12.03%, while the second top holder, Vanguard Group, Inc. (The), currently owns 8.95%.
Over the last six months, insiders have sold 200,000 with the most recent transaction from Taylor Wayne Kent, Chairman, CEO, President, with a sell at price 61.70 per share.
Overall, the recommended rating for TXRH is Moderate Buy. Currently, the company has 24 analysts watching the stock, and the average quarterly earnings estimate is 0.17. Quarterly revenue estimates are averaging 612.48M with the high estimate reaching 636M and the low at 591.36M.
To review, the current 1-year target estimate is sitting at 62.37, while the current price 72.53. Based on this, we expect some pullback on the stock over time given our above analysis.