Brinker International, a well-known player in the casual dining sector, has recently experienced significant changes in its stock ownership among institutional investors.
Marshall Wace LLP has acquired an additional 1,049,836 shares, bringing its total holdings to 1,057,416 shares valued at approximately $76.5 million. Millennium Management LLC has increased its stake by 31.7%, now holding 942,510 shares worth around $68.2 million after purchasing an additional 227,047 shares. Renaissance Technologies LLC has also expanded its investment, increasing its holdings by 15.9% during the second quarter. The firm now owns 295,700 shares valued at $21.4 million, following the acquisition of 40,500 additional shares. These moves indicate a strong interest from institutional players in Brinker International's potential for growth.
Brinker International has received mixed reviews, with a consensus rating of "Hold" among analysts. UBS Group has raised its price target for the stock from $70 to $94, indicating a potential upside of 4.28% from its current trading price. Evercore ISI has increased its target from $69 to $90, while Wells Fargo & Company has set a more conservative target of $50. Citigroup has adjusted its price objective from $69 to $83, and KeyCorp has upgraded Brinker International from a "sector weight" to an "overweight" rating with a target of $72.
Brinker International's recent financial results show a mixed performance. In its latest quarterly earnings report, the company posted earnings per share (EPS) of $1.61, slightly missing the consensus estimate of $1.65. However, the company reported a revenue of $1.21 billion, surpassing analyst expectations of $1.17 billion, and marking a 12.3% increase compared to the same quarter last year.
The stock has experienced fluctuations, trading down 0.7% to $90.14, with a market capitalization of approximately $4.01 billion. Brinker International's financial ratios indicate a current ratio of 0.38 and a quick ratio of 0.32, suggesting potential liquidity challenges. The company’s debt-to-equity ratio stands at 19.96, raising concerns about its leverage and financial stability. Despite these challenges, the stock has shown resilience, with a fifty-two week low of $31.95 and a high of $91.25, reflecting significant volatility in its trading history.
The activity of institutional investors in Brinker International is noteworthy, with Vanguard Group Inc. increasing its position by 2.5% during the first quarter, now holding 5,535,500 shares valued at $275 million. Boston Partners has made a more aggressive move, lifting its holdings by 231.8% to own 1,583,239 shares worth $78.6 million.
Overall, the sentiment surrounding Brinker International appears to be cautiously optimistic, with institutional investors betting on the company's ability to navigate the challenges of the casual dining sector. The interplay between institutional investment and analyst ratings will likely shape the future trajectory of Brinker International's stock performance in the coming quarters.