Why Chuy's Stock Is Soaring
Chuy’s Holdings, Inc. (NASDAQ:CHUY) shares are trading higher Thursday after Darden Restaurants, Inc. (NYSE:DRI) announced it will acquire the company.
The Details:
Darden will acquire all of Chuy's outstanding shares for $37.50 per share in an all-cash transaction with an enterprise value of approximately $605 million. The transaction is expected to be completed in Darden’s fiscal second quarter, subject to satisfaction of customary closing conditions.
Chuy’s will join Darden’s portfolio of brands, which includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.
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“We are excited about the opportunity to join the Darden family and its portfolio of well-respected brands. Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures. Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities,” said Steven Hislop, CEO of Chuy’s.
According to data from Benzinga Pro, Chuy's shares are moving on heavy volume Thursday with more than ten times the stock's average daily volume already traded in the session.
Will CHUY Stock Go Up?
When trying to assess whether or not Chuy’s Holdings will trade higher from current levels, it's a good idea to take a look at analyst forecasts.
Wall Street analysts have an average 12-month price target of $35.29 on Chuy’s Holdings. The Street high target is currently at $41 and the Street low target is $24. Of all the analysts covering Chuy’s Holdings, 4 have positive ratings, 3 have neutral ratings and no one has negative ratings.
In the last month, 2 analysts have adjusted price targets. Here's a look at recent price target changes [Analyst Ratings]. Benzinga also tracks Wall Street's most accurate analysts. Check out how analysts covering Chuy’s Holdings have performed in recent history.
Stocks don't move in a straight line. The average stock market return is approximately 10% per year. Chuy’s Holdings is 10.92% down year-to-date. The average analyst price target suggests the stock could have further downside ahead.
For a broad overview of everything you need to know about Chuy’s Holdings, visit here. If you want to go above and beyond, there's no better tool to help you do just that than Benzinga Pro. Start your free trial today.
CHUY Price Action: According to Benzinga Pro, Chuy's Holdings shares are up 47.8% at $37.39 at the time of publication Thursday.
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Image: Courtesy of Chuy's Holdings, Inc.