Insider Sell: CEO Gerald Morgan Sells 5,000 Shares of Texas Roadhouse Inc (TXRH)
Texas Roadhouse Inc (NASDAQ:TXRH), a popular steakhouse chain known for its hand-cut steaks, fall-off-the-bone ribs, and made-from-scratch sides, has reported an insider sell according to the latest SEC filings. Chief Executive Officer Gerald Morgan sold 5,000 shares of the company on February 29, 2024. The transaction was executed at an average price of $147.9 per share, resulting in a total sale amount of $739,500.Gerald Morgan has been actively trading shares over the past year, with a total of 22,500 shares sold and no shares purchased. This latest transaction follows a pattern of insider selling activity at Texas Roadhouse Inc, as there have been no insider buys but 14 insider sells over the past year.
The market capitalization of Texas Roadhouse Inc stands at $9.982 billion, reflecting the company's substantial presence in the restaurant industry. The stock's price-earnings ratio is currently 32.97, which is above both the industry median of 23.865 and the historical median for the company. This indicates that the stock is trading at a premium compared to its peers and its own historical valuation.Regarding the stock's valuation, with a share price of $147.9 and a GuruFocus Value of $125.08, Texas Roadhouse Inc has a price-to-GF-Value ratio of 1.18. This suggests that the stock is modestly overvalued when considering the intrinsic value estimate provided by GuruFocus.
The GF Value is determined by considering historical trading multiples, a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.The insider's recent sell transaction may provide investors with insight into the executive's perspective on the stock's current valuation and future prospects. However, investors should also consider the broader context of the company's financial performance and market conditions when evaluating the significance of insider trading activity.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
