Brinker International, Inc. (NYSE:EAT) Executive Vice President and Chief Financial Officer Michaela M. Ware recently reported a significant transaction involving the company's common stock. On November 8, Ware sold 5,242 shares of Brinker International stock at an average price of $114.48 per share, totaling approximately $600,104. This transaction was disclosed in a recent SEC Form 4 filing.
In addition to the sale, Ware acquired 3,661 shares through the exercise of stock options at a price of $43.35 per share, amounting to a total of $158,704. Following these transactions, Ware's direct ownership in the company stands at 21,402.37 shares.
The sale and acquisition of shares by a key executive like Ware provide a glimpse into insider activities at Brinker International, a major player in the retail-eating places sector. Investors often keep a close watch on such transactions for insights into the company's leadership confidence and future prospects.
In other recent news, Brinker International has made significant stock-based compensation awards to its top executives, as revealed in a recent SEC filing. CEO and President, Kevin Hochman, received performance shares with a target value of $20 million, while other executives were also awarded substantial amounts. These awards are part of the Fiscal 2025 Executive Performance Share Retention Plan, designed to incentivize performance and shareholder value growth.
In analyst activity, Brinker International's strong Q1 results have prompted multiple firms to adjust their stock targets. Piper Sandler raised its target by over 55%, maintaining a neutral rating, after witnessing a 14.1% increase in same-store sales for Brinker's Chili's brand. Stifel also increased its price target while maintaining a buy rating, highlighting the company's sales momentum.
KeyBanc Capital Markets adjusted its price target for Brinker to $115, retaining an overweight rating, following Brinker's Q1 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 Q1 results.
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 shifted from an overweight to a neutral rating, while notably increasing the price target to $100. These recent developments reflect Brinker's confidence in its growth trajectory and its commitment to operational efficiency.
InvestingPro Insights
Brinker International's recent stock performance and financial metrics offer additional context to the insider transaction reported by CFO Michaela M. Ware. According to InvestingPro data, the company's stock has shown remarkable strength, with a 250.52% price total return over the past year and a 102.31% return in the last six months. This upward trajectory aligns with Ware's decision to exercise options and sell a portion of shares, potentially capitalizing on the stock's strong performance.
The company's financial health appears robust, with revenue of $4.54 billion in the last twelve months and a revenue growth of 8.39% during the same period. Brinker's profitability is also noteworthy, with a gross profit of $675.9 million and an operating income margin of 6.74%.
InvestingPro Tips highlight that 17 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Brinker's financial performance. Additionally, the stock is trading near its 52-week high, with its current price at 98.76% of the 52-week peak. This information corroborates the strong market sentiment reflected in the stock's recent performance.
It's worth noting that InvestingPro offers 16 additional tips for Brinker International, providing investors with a more comprehensive analysis of the company's prospects and potential risks.
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