In a recent transaction, Douglas N. Comings, the Senior Vice President & Chief Operating Officer of Chili's, a subsidiary of Brinker International, Inc. (NYSE:EAT), sold 2,953 shares of the company's common stock. The transaction, which took place on June 5, 2024, resulted in a total sale value of approximately $215,480. The shares were sold at a weighted average price of $72.97, with individual sales prices ranging from $72.96 to $73.00.
This sale followed a coinciding transaction where Comings acquired the same number of shares through the exercise of options at a price of $54.33 per share, totaling an acquisition cost of $160,436. It's important to note that the shares sold were not part of the options exercised on the same day. Following these transactions, Comings' direct holdings in Brinker International decreased to 38,164 shares.
The transactions were reported in a Form 4 filing with the Securities and Exchange Commission. The filing also indicated that Comings indirectly owns an additional 1,870.528 shares through the Brinker International, Inc. 401(k) Plan as of May 30, 2024.
Investors often look at insider transactions as a signal of the executives' view on the company's current valuation and future prospects. The recent activity by Comings provides an example of such transactions, which are closely monitored by market participants for insights into insider confidence and company performance.
Brinker International, known for its ownership of restaurant chains, particularly Chili's, operates under the retail-eating places industry category. The company's stock trades under the ticker symbol EAT on the New York Stock Exchange.
In other recent news, Brinker International, the parent company of Chili's and Maggiano's restaurants, has been the subject of positive analyst adjustments and has reported strong earnings. Argus upgraded Brinker International's stock rating from Hold to Buy, citing a successful financial turnaround due to strategic changes implemented by the new CEO. BMO Capital Markets and Evercore ISI have also increased their stock price targets for Brinker International, following the company's third-quarter fiscal year 2024 earnings report which exceeded consensus forecasts.
The company's third quarter fiscal year 2024 earnings per share (EPS) was reported at $1.24, surpassing the consensus forecast by $0.09. This performance was attributed to stronger restaurant margins, particularly from Chili's, which demonstrated positive customer traffic for the second quarter in a row. As a result, the company revised its full-year fiscal 2024 EPS guidance upwards to a range of $3.80 to $4.00.
These are recent developments and reflect the confidence in Brinker International's ongoing recovery and growth potential. The company's strategic efforts in enhancing the dining experience and marketing have resulted in strong top-line growth, improved restaurant operating margins, and increased cash flow. The company's updated annual guidance projects total revenues to be in the range of $4.330 billion to $4.350 billion.
InvestingPro Insights
Brinker International, Inc. (NYSE:EAT) has seen its stock price hovering near its 52-week high, reflecting a strong performance in the market. According to InvestingPro data, the company's market capitalization stands at $3.22 billion USD. With a current P/E ratio of 21.04 and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 17.97, the company trades at a multiple that suggests investor confidence in its earnings capacity. Moreover, a PEG ratio at 0.31 for the same period indicates that the stock may be undervalued relative to its earnings growth.
Analyzing recent stock performance, Brinker International has delivered a high return over the last year with an 87.76% price total return, and the momentum has continued with a 26.7% return over the last month. This robust trend is also reflected in the short-term, where the 1-week price total return stands at 4.38%. These metrics underscore a period of significant appreciation in the company's stock value, aligning with the InvestingPro Tip that highlights the stock's strong return over the past month and three months.
For investors seeking more detailed analysis, the InvestingPro platform offers additional insights into Brinker International's performance and valuation. There are several more InvestingPro Tips available, including analysts' upward revisions of earnings and the company's profitability over the last twelve months. For those looking to delve deeper into Brinker International's financials and stock analysis, using the coupon code PRONEWS24 can provide an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Visit https://www.investing.com/pro/EAT to explore these exclusive tips and metrics.
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