In a recent financial move, Daniel S. Fuller, the Senior Vice President and Chief Legal Officer at Brinker International, Inc. (NYSE:EAT), sold 4,000 shares of the company's common stock. The shares were sold at a price of $125.81 each, totaling approximately $503,240.
Following this transaction, Fuller retains direct ownership of 33,285 shares. Additionally, he holds 52.301 shares indirectly through the Brinker Common Stock Fund under the company's 401(k) Savings Plan as of November 7, 2024.
This transaction is part of the regular reporting of insider trades, providing transparency to investors regarding the buying and selling activities of company executives.
In other recent news, Brinker International has made significant stock-based compensation awards to its top executives, as per a recent SEC filing. CEO Kevin Hochman received performance shares with a target value of $20 million, with other executives also receiving substantial awards. The performance shares are based on Brinker's Total (EPA:TTEF) Shareholder Return (TSR) relative to peers in the S&P 1500 Hotels, Restaurants and Leisure Index.
In financial developments, Brinker's first-quarter results have been strong, with several firms adjusting their stock targets for the company. Piper Sandler raised its stock target for Brinker by over 55%, following a robust performance from its Chili's brand which saw a 14.1% increase in same-store sales. Stifel also increased its price target on Brinker shares, highlighting the company's sales momentum.
KeyBanc Capital Markets adjusted its price target for Brinker to $115, following Brinker's first-quarter results that surpassed consensus estimates for earnings per share, EBITDA, and same-store sales growth. Evercore ISI increased its price target for Brinker to $110, maintaining an in line rating, following a reassessment of Brinker's first-quarter results. The firm revised upward its earnings per share estimates for fiscal year 2025 to $5.66, a 38% year-over-year increase.
BMO Capital Markets adjusted its stance on Brinker International, shifting its rating from outperform to market perform, while increasing its price target for the company's shares from $80.00 to $105.00. Similarly, JPMorgan (NYSE:JPM) shifted from an overweight to a neutral rating, while notably increasing the price target to $100. These are all recent developments that reflect Brinker's confidence in its growth trajectory and its commitment to operational efficiency.
InvestingPro Insights
The recent insider sale by Daniel S. Fuller at Brinker International, Inc. (NYSE:EAT) comes at a time when the company's stock is showing strong performance. According to InvestingPro data, Brinker's stock has seen an impressive 253.36% price total return over the past year, with a particularly strong 76.61% return in the last three months alone. This robust performance has pushed the stock to trade near its 52-week high, with the current price at 99.86% of that peak.
InvestingPro Tips highlight that 18 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Brinker's financial performance. This optimism is further supported by the company's revenue growth of 8.39% over the last twelve months, with quarterly revenue growth reaching 12.49% in the most recent quarter.
However, investors should note that the stock's RSI suggests it may be in overbought territory, which could indicate a potential for a short-term pullback. Additionally, Brinker's P/E ratio of 31.15 indicates that the stock is trading at a high earnings multiple, which may be a consideration for value-oriented investors.
For those interested in a deeper analysis, InvestingPro offers 16 additional tips on Brinker International, providing a comprehensive view of the company's financial health and market position.
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