Brinker International Inc. (NYSE:EAT) shares traded lower over the last trading session, losing -0.21% on 06/02/21. The shares fell to a low of $56.07 before closing at $57.23. Intraday shares traded counted 2.64 million, which was -199.79% lower than its 30-day average trading volume of 882.08K. EAT’s previous close was $57.35 while the outstanding shares total 45.50M. The firm has a beta of 2.82, a 12-month trailing P/E ratio of 3366.47, and a growth ratio of 71.11. The stock’s Relative Strength Index (RSI) is 34.83, with weekly volatility at 4.22% and ATR at 2.61. The EAT stock’s 52-week price range has touched low of $20.72 and a $78.33 high.
Investors have identified the Restaurants company Brinker International Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $2.65 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Brinker International Inc. (EAT) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 252.4 million total, with 577.8 million as their total liabilities.
EAT were able to record 206.2 million as free cash flow during the 08/18/2021 quarter of the year, this saw their quarterly net cash flow reduce by 19.7 million. In cash movements, the company had a total of 268.6 million as operating cash flow.
Potential earnings growth for Brinker International Inc. (EAT)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/18/2021 quarter of the year, Brinker International Inc. recorded a total of 828.4 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -3.81% coming in sequential stages and their sales for the 08/18/2021 quarter increasing by 8.17%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 700.8 million trying to sell their products during the last quarter, with the result yielding a gross income of 127.6 million. This allows shareholders to hold on to 45.50M with the recently reported earning now reading 0.75 cents per share. This is a figure that compared to analyst’s prediction for their 08/18/2021 (0.78 cents a share).
Having a look at the company’s valuation, the company is expected to record 5.09 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on EAT sounds very interesting.
Is the stock of EAT attractive?
In related news, SVP & Co-COO, Chili’s, Comings Douglas N. sold 1,529 shares of the company’s stock in a transaction that recorded on May 11. The sale was performed at an average price of 63.48, for a total value of 97,061. As the sale deal closes, the EVP & CFO, Taylor Joseph G now sold 6,487 shares of the company’s stock, valued at 427,558. Also, President, CEO, Pres. Chili’s, Roberts Wyman sold 102,882 shares of the company’s stock in a deal that was recorded on Apr 29. The shares were price at an average price of 70.63 per share, with a total market value of 7,266,556. Following this completion of acquisition, the Director, EDELMAN HARRIET now holds 4,500 shares of the company’s stock, valued at 316,350. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.50%.
11 out of 20 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Brinker International Inc.. 0 analysts has assigned a Sell rating on the EAT stock. The 12-month mean consensus price target for the company’s shares has been set at $78.69.