Bank of America Corp. cut shares of Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) from a buy rating to an underperform rating in a research note issued to investors on Tuesday morning. Bank of America Corp. currently has $50.00 price objective on the stock.

“Low valuation is a risk to our call, but low margins leave the company exposed to sharp corrections if sales remain weak.,” the firm’s analyst commented.

RRGB has been the subject of several other research reports. Zacks Investment Research raised shares of Red Robin Gourmet Burgers from a sell rating to a hold rating in a report on Wednesday, July 20th. Canaccord Genuity began coverage on shares of Red Robin Gourmet Burgers in a research report on Monday, August 22nd. They issued a hold rating and a $53.00 price target on the stock. Morgan Stanley reiterated a hold rating on shares of Red Robin Gourmet Burgers in a research report on Wednesday, May 18th. Maxim Group reiterated a buy rating and issued a $81.00 price target (down from $85.00) on shares of Red Robin Gourmet Burgers in a research report on Tuesday, May 17th. Finally, Sterne Agee CRT reiterated a neutral rating on shares of Red Robin Gourmet Burgers in a research report on Monday, May 16th. One equities research analyst has rated the stock with a sell rating, six have given a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of Hold and a consensus target price of $71.69.

Shares of Red Robin Gourmet Burgers (NASDAQ:RRGB) opened at 46.46 on Tuesday. Red Robin Gourmet Burgers has a 52-week low of $45.00 and a 52-week high of $82.66. The company has a 50 day moving average of $49.69 and a 200 day moving average of $55.87. The firm has a market capitalization of $617.31 million, a PE ratio of 15.47 and a beta of 0.98.

Red Robin Gourmet Burgers (NASDAQ:RRGB) last posted its quarterly earnings data on Tuesday, August 9th. The company reported $0.75 earnings per share for the quarter, missing the consensus estimate of $0.80 by $0.05. The company earned $305.50 million during the quarter, compared to analyst estimates of $313.63 million. Red Robin Gourmet Burgers had a return on equity of 12.47% and a net margin of 3.27%. The business’s revenue for the quarter was up 4.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.78 EPS. On average, analysts anticipate that Red Robin Gourmet Burgers will post $3.19 earnings per share for the current fiscal year.

In other news, Director Stuart I. Oran sold 1,200 shares of the company’s stock in a transaction dated Wednesday, June 22nd. The stock was sold at an average price of $52.62, for a total value of $63,144.00. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Stuart B. Brown sold 5,846 shares of the company’s stock in a transaction dated Thursday, August 11th. The shares were sold at an average price of $53.15, for a total value of $310,714.90. Following the completion of the transaction, the chief financial officer now owns 15,790 shares in the company, valued at approximately $839,238.50. The disclosure for this sale can be found here. 2.66% of the stock is owned by insiders.

Institutional investors have recently modified their holdings of the stock. BlackRock Institutional Trust Company N.A. increased its position in shares of Red Robin Gourmet Burgers by 0.8% in the first quarter. BlackRock Institutional Trust Company N.A. now owns 345,979 shares of the company’s stock worth $22,305,000 after buying an additional 2,576 shares in the last quarter. Wellington Management Group LLP increased its position in shares of Red Robin Gourmet Burgers by 270.2% in the first quarter. Wellington Management Group LLP now owns 159,270 shares of the company’s stock worth $10,268,000 after buying an additional 116,252 shares in the last quarter. AXA increased its position in shares of Red Robin Gourmet Burgers by 56.1% in the first quarter. AXA now owns 29,200 shares of the company’s stock worth $1,883,000 after buying an additional 10,500 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. increased its position in shares of Red Robin Gourmet Burgers by 71.6% in the first quarter. Los Angeles Capital Management & Equity Research Inc. now owns 13,293 shares of the company’s stock worth $857,000 after buying an additional 5,545 shares in the last quarter. Finally, Kennedy Capital Management Inc. acquired a new position in shares of Red Robin Gourmet Burgers during the first quarter worth $4,435,000.

About Red Robin Gourmet Burgers

Red Robin Gourmet Burgers, Inc, together with its subsidiaries, primarily develops, operates and franchises casual-dining restaurants and fast-casual restaurants in North America and focuses on serving a selection of gourmet burgers. The Company is primarily engaged in the sale of food and beverages at the Company-owned restaurants.

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