Investors Buy High Volume of Call Options on Brinker International (NYSE:EAT)

Brinker International, Inc. (NYSE:EAT) saw some unusual options trading activity on Thursday. Stock traders purchased 2,016 call options on the company. This represents an increase of 2,865% compared to the typical daily volume of 68 call options.

A number of research firms have issued reports on EAT. Evercore ISI restated a “hold” rating and set a $40.00 target price on shares of Brinker International in a research report on Tuesday. Deutsche Bank started coverage on Brinker International in a research note on Friday, June 28th. They issued a “hold” rating and a $40.00 price target for the company. Raymond James reaffirmed an “outperform” rating and issued a $47.00 price target (down from $50.00) on shares of Brinker International in a research note on Wednesday. They noted that the move was a valuation call. Loop Capital lowered their price target on Brinker International to $42.00 and set a “hold” rating for the company in a research note on Wednesday. Finally, UBS Group raised Brinker International from a “sell” rating to a “neutral” rating and set a $39.00 price target for the company in a research note on Monday, June 3rd. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the stock. The company currently has an average rating of “Hold” and a consensus price target of $44.29.

Several hedge funds and other institutional investors have recently added to or reduced their stakes in EAT. Strategy Asset Managers LLC acquired a new stake in Brinker International during the 1st quarter valued at $79,000. Nordea Investment Management AB acquired a new stake in Brinker International during the 4th quarter valued at $147,000. Quantamental Technologies LLC acquired a new stake in Brinker International during the 2nd quarter valued at $173,000. Janney Montgomery Scott LLC acquired a new stake in Brinker International during the 2nd quarter valued at $219,000. Finally, Nomura Holdings Inc. acquired a new stake in Brinker International during the 2nd quarter valued at $234,000.

NYSE EAT opened at $37.02 on Friday. Brinker International has a 52-week low of $36.44 and a 52-week high of $53.61. The business has a 50 day simple moving average of $39.39 and a 200 day simple moving average of $41.59. The stock has a market cap of $1.45 billion, a price-to-earnings ratio of 9.42, a PEG ratio of 1.12 and a beta of 0.25.

Brinker International (NYSE:EAT) last released its quarterly earnings results on Tuesday, August 13th. The restaurant operator reported $1.36 earnings per share for the quarter, topping analysts’ consensus estimates of $1.35 by $0.01. Brinker International had a negative return on equity of 18.81% and a net margin of 4.81%. The firm had revenue of $834.10 million during the quarter, compared to the consensus estimate of $834.69 million. During the same quarter in the prior year, the firm posted $1.19 EPS. The business’s revenue was up 2.1% on a year-over-year basis. Analysts anticipate that Brinker International will post 4.11 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 26th. Shareholders of record on Friday, September 6th will be given a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 4.11%. The ex-dividend date is Thursday, September 5th. Brinker International’s dividend payout ratio (DPR) is currently 38.68%.

About Brinker International

Brinker International, Inc, together with its subsidiaries, owns, develops, operates, and franchises casual dining restaurants in the United States and internationally. As of June 27, 2018, it owned, operated, or franchised 1,686 restaurants comprising 997 company-owned restaurants and 689 franchised restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brand names.

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