Brinker International, Inc. (NYSE: EAT)’s stock price has gone rise by 1.43 in comparison to its previous close of 47.59, however, the company has experienced a 6.56% increase in its stock price over the last five trading days. Zacks Investment Research reported 2024-04-25 that Looking beyond Wall Street’s top -and-bottom-line estimate forecasts for Brinker International (EAT), delve into some of its key metrics to gain a deeper insight into the company’s potential performance for the quarter ended March 2024.
Is It Worth Investing in Brinker International, Inc. (NYSE: EAT) Right Now?
Brinker International, Inc. (NYSE: EAT) has a price-to-earnings ratio of 14.13x that is above its average ratio. Additionally, the 36-month beta value for EAT is 2.48. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 1 rating it as “overweight,” 15 rating it as “hold,” and 2 rating it as “sell.”
The public float for EAT is 43.51M and currently, short sellers hold a 16.96% ratio of that float. The average trading volume of EAT on April 26, 2024 was 1.32M shares.
EAT’s Market Performance
EAT stock saw an increase of 6.56% in the past week, with a monthly gain of 1.71% and a quarterly increase of 21.07%. The volatility ratio for the week is 2.51%, and the volatility levels for the last 30 days are 3.61% for Brinker International, Inc. (EAT).. The simple moving average for the past 20 days is 2.20% for EAT’s stock, with a 23.24% simple moving average for the past 200 days.
Analysts’ Opinion of EAT
Many brokerage firms have already submitted their reports for EAT stocks, with Gordon Haskett repeating the rating for EAT by listing it as a “Buy.” The predicted price for EAT in the upcoming period, according to Gordon Haskett is $48 based on the research report published on January 16, 2024 of the current year 2024.
Morgan Stanley, on the other hand, stated in their research note that they expect to see EAT reach a price target of $36. The rating they have provided for EAT stocks is “Underweight” according to the report published on January 16th, 2024.
Raymond James gave a rating of “Strong Buy” to EAT, setting the target price at $40 in the report published on October 18th of the previous year.
EAT Trading at 2.93% from the 50-Day Moving Average
After a stumble in the market that brought EAT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -6.67% of loss for the given period.
Volatility was left at 3.61%, however, over the last 30 days, the volatility rate increased by 2.51%, as shares sank -1.55% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.91% upper at present.
During the last 5 trading sessions, EAT rose by +6.56%, which changed the moving average for the period of 200-days by +26.83% in comparison to the 20-day moving average, which settled at $47.19. In addition, Brinker International, Inc. saw 11.79% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at EAT starting from Taylor Joseph G, who sale 24,163 shares at the price of $44.97 back on Feb 02 ’24. After this action, Taylor Joseph G now owns 56,661 shares of Brinker International, Inc., valued at $1,086,514 using the latest closing price.
Taylor Joseph G, the EVP & CFO of Brinker International, Inc., sale 5,000 shares at $41.21 during a trade that took place back on Dec 12 ’23, which means that Taylor Joseph G is holding 66,286 shares at $206,050 based on the most recent closing price.
Stock Fundamentals for EAT
Current profitability levels for the company are sitting at:
- 0.05 for the present operating margin
- 0.13 for the gross margin
The net margin for Brinker International, Inc. stands at 0.04. The total capital return value is set at 0.11.
Based on Brinker International, Inc. (EAT), the company’s capital structure generated 1.06 points at debt to capital in total, while cash flow to debt ratio is standing at 0.16. The debt to equity ratio resting at -19.11. The interest coverage ratio of the stock is 3.37.
Currently, EBITDA for the company is 335.4 million with net debt to EBITDA at 5.21. When we switch over and look at the enterprise to sales, we see a ratio of 0.99. The receivables turnover for the company is 53.4for trailing twelve months and the total asset turnover is 1.69. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.36.
Conclusion
In conclusion, Brinker International, Inc. (EAT) has seen better performance in recent times. Analysts have a bearish opinion on the stock, with some rating it as a “sell” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
