Texas Roadhouse , Inc. (NASDAQ:TXRH) CEO Gerald L. Morgan recently sold a significant portion of his company shares, according to the latest SEC filings. The transaction, which took place on May 28, 2024, involved Morgan disposing of 15,000 shares at an average price of $171.7 per share, resulting in a total sale value of approximately $2.575 million.
The shares were sold within a price range of $170.59 to $173.15, as detailed in the footnotes of the report. These transactions were executed pursuant to a pre-arranged 10b5-1 trading plan, which allows company insiders to sell stocks at a predetermined time to avoid accusations of insider trading.
Following the sale, Morgan still retains 77,847 shares of Texas Roadhouse common stock, maintaining a significant stake in the company he leads. Additionally, the SEC filing disclosed that Morgan holds 11,000 restricted stock units (RSUs) that are set to vest on January 8, 2025, provided he continues his service with the company until that date.
Investors often look to insider trading patterns for hints about a company's prospects. However, it's important to note that such sales can be motivated by a variety of reasons and may not necessarily reflect a negative outlook on the company's future performance.
Texas Roadhouse has not made any official statement regarding the CEO's stock sale at the time of reporting. The company's stock performance and further insider transactions remain a point of interest for shareholders and potential investors.
InvestingPro Insights
Amidst the news of CEO Gerald L. Morgan's recent stock sale, Texas Roadhouse (NASDAQ:TXRH) continues to present a mixed bag of financial metrics and market performance. An InvestingPro Tips analysis reveals that the company has been trading at a high earnings multiple, with a current P/E ratio of 34.63, which is slightly elevated when adjusted for the last twelve months as of Q1 2024, at 35.45. This suggests that the market has high expectations for the company's future earnings growth.
Despite the CEO's sale, Texas Roadhouse has demonstrated strong performance, with a year-to-date price total return of 38.53% and a remarkable 59.31% return over the last year. The company also boasts a consistent track record of dividend growth, having raised its dividend for 3 consecutive years and maintained payments for 14 consecutive years, which could be a sign of confidence in its financial stability and commitment to shareholder value.
InvestingPro Data indicates that the company has experienced a healthy revenue growth of 13.73% over the last twelve months as of Q1 2024. However, it is noted that Texas Roadhouse operates with a gross profit margin of 16.88%, which may be considered weak by some industry standards.
For investors and potential shareholders looking to delve deeper into Texas Roadhouse's financial health and market potential, there are additional insights available. InvestingPro offers a wealth of tips, with 25 analysts having revised their earnings upwards for the upcoming period, suggesting potential optimism in the company's earning capacity. Moreover, the platform provides a comprehensive analysis of the company's valuation, liquidity, and profitability metrics.
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