Gerald L. Morgan, who serves as both CEO and Executive Vice Chairman at Texas Roadhouse Inc (NASDAQ:TXRH), completed a stock sale on January 20, 2026, disposing of 5,000 shares of common stock. Each share was sold at $196.00, culminating in proceeds totaling $980,000. This transaction coincided with the company’s stock price nearing its 52-week high of $199.99, with current trading prices around $191.25.
Investment data from InvestingPro indicates that Texas Roadhouse's stock is trading modestly above its calculated Fair Value, supported by a price-to-earnings ratio of 29.38. Post-sale, Morgan retains direct ownership of 91,774 stock shares, maintaining a substantial equity position in the firm valued at approximately $12.65 billion.
Beyond his directly held shares, Morgan holds 12,200 Restricted Stock Units (RSUs) set to vest on January 8, 2027, and 60,800 RSUs scheduled to vest on January 8, 2031. Each RSU is a contractual right to receive one common stock share upon vesting, providing further future equity potential.
Financially, Texas Roadhouse exhibits strong stability, evidenced by an InvestingPro Financial Health Score of 3.11, designated as “GREAT”. This underscores the company's solid balance sheet and operational strength.
The share sale itself was executed under a predetermined Rule 10b5-1 stock trading plan established on November 14, 2024, facilitating intentional insider sales without timing concerns.
Investors monitoring insider activity should note the restaurant's positive track record of dividend increases, having raised payouts five consecutive years and continued payments for 15 years, yielding a current dividend yield of 1.42%. The company’s forthcoming earnings report is slated for release on February 19, 2026.
Further corporate developments include adjustments to executive compensation for fiscal 2026. With disclosures filed with the U.S. Securities and Exchange Commission, the Compensation Committee has set new annual base salaries for senior leaders. Gerald L. Morgan’s salary is $1,475,000, while other key executives, including Gina Tobin and Chris Colson, have salaries set at $762,000 and $662,000 respectively.
Separately, TD Cowen has initiated coverage of Texas Roadhouse with a Buy rating, citing consistent same-store sales performance as a favorable indicator. TD Cowen also assigned a Buy rating to Brinker International, with a target price of $192 per share, motivated by expectations for above-consensus same-store sales growth influenced by improved perceptions of value and quality among younger consumers.
In contrast to the optimistic outlook for restaurant chains, Bank of America downgraded Ciena's stock rating to Neutral, alluding to concerns about excessive valuation and the risk of slowing order trends, revealing diverging sentiments within different sectors.
This article incorporates AI assistance and has undergone editorial review to ensure accuracy and clarity.