ValuEngine Downgrades Brinker International (NYSE:EAT) to Strong Sell

Brinker International (NYSE:EAT) was downgraded by investment analysts at ValuEngine from a “sell” rating to a “strong sell” rating in a research report issued to clients and investors on Wednesday, September 4th, ValuEngine reports.

A number of other research analysts also recently issued reports on EAT. BMO Capital Markets set a $36.00 price objective on Brinker International and gave the company a “sell” rating in a research note on Friday, August 16th. KeyCorp assumed coverage on Brinker International in a research note on Tuesday, July 23rd. They issued a “sector weight” rating and a $45.00 price target for the company. JPMorgan Chase & Co. upgraded Brinker International from a “neutral” rating to an “overweight” rating and dropped their price target for the stock from $44.00 to $43.00 in a research note on Monday, July 15th. Wells Fargo & Co dropped their price target on Brinker International from $41.00 to $40.00 and set a “market perform” rating for the company in a research note on Monday, August 19th. Finally, Maxim Group restated a “buy” rating and issued a $58.00 price target on shares of Brinker International in a research note on Friday, August 16th. Three research analysts have rated the stock with a sell rating, nine have issued a hold rating and eight have assigned a buy rating to the stock. The company has an average rating of “Hold” and an average price target of $43.94.

Shares of NYSE EAT traded up $1.32 during midday trading on Wednesday, hitting $43.52. 22,622 shares of the company’s stock traded hands, compared to its average volume of 1,303,847. Brinker International has a 1 year low of $36.44 and a 1 year high of $53.61. The stock has a market capitalization of $1.61 billion, a price-to-earnings ratio of 11.01, a price-to-earnings-growth ratio of 1.40 and a beta of 0.23. The firm has a fifty day moving average of $39.30 and a 200 day moving average of $40.98.

Brinker International (NYSE:EAT) last released its quarterly earnings results on Tuesday, August 13th. The restaurant operator reported $1.36 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.35 by $0.01. The firm had revenue of $834.10 million during the quarter, compared to analyst estimates of $834.69 million. Brinker International had a net margin of 4.81% and a negative return on equity of 18.81%. The business’s revenue for the quarter was up 2.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.19 EPS. On average, analysts predict that Brinker International will post 4.15 EPS for the current year.

In related news, VP Michaela M. Ware sold 968 shares of the firm’s stock in a transaction dated Wednesday, September 4th. The stock was sold at an average price of $39.41, for a total transaction of $38,148.88. Following the sale, the vice president now owns 9,973 shares of the company’s stock, valued at $393,035.93. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Wade Allen sold 725 shares of the firm’s stock in a transaction dated Monday, August 19th. The shares were sold at an average price of $39.74, for a total value of $28,811.50. Following the sale, the senior vice president now directly owns 6,481 shares in the company, valued at approximately $257,554.94. The disclosure for this sale can be found here. Insiders have sold a total of 13,112 shares of company stock worth $523,720 in the last three months. Corporate insiders own 2.72% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. Arizona State Retirement System raised its position in Brinker International by 1.1% during the second quarter. Arizona State Retirement System now owns 27,217 shares of the restaurant operator’s stock valued at $1,071,000 after acquiring an additional 290 shares in the last quarter. Royce & Associates LP increased its position in Brinker International by 0.8% during the 1st quarter. Royce & Associates LP now owns 37,433 shares of the restaurant operator’s stock worth $1,661,000 after purchasing an additional 313 shares in the last quarter. ARP Americas LP increased its position in Brinker International by 2.6% during the 1st quarter. ARP Americas LP now owns 19,851 shares of the restaurant operator’s stock worth $881,000 after purchasing an additional 500 shares in the last quarter. Bank of Montreal Can increased its position in Brinker International by 1.9% during the 2nd quarter. Bank of Montreal Can now owns 31,889 shares of the restaurant operator’s stock worth $1,255,000 after purchasing an additional 605 shares in the last quarter. Finally, Alpha Windward LLC increased its position in Brinker International by 8.0% during the 2nd quarter. Alpha Windward LLC now owns 11,280 shares of the restaurant operator’s stock worth $459,000 after purchasing an additional 840 shares in the last quarter.

Brinker International Company Profile

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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To view ValuEngine’s full report, visit ValuEngine’s official website.

Analyst Recommendations for Brinker International (NYSE:EAT)

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