Cheesecake Factory (NASDAQ:CAKE) Price Target Raised to $105.00 at JPMorgan Chase & Co.

Key Points

• JPMorgan raised Cheesecake Factory’s price target from $92 to $105 while maintaining a neutral rating; the new target implied 8.13% downside from the prior close.
• Analyst sentiment remained mixed, with a consensus “Hold” rating and average price target of $83.47, despite recent target increases from several firms.
• Cheesecake Factory exceeded quarterly expectations, reporting $1.44 in EPS versus $1.18 expected and $1.03 billion in revenue, up 7.7% year over year. Meanwhile, insiders sold 216,239 shares worth about $22.5 million over the prior three months.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) had its price target increased by JPMorgan Chase & Co. from $92.00 to $105.00 in a research report issued on Wednesday,Benzinga reports. The firm currently has a "neutral" rating on the restaurant operator's stock. JPMorgan Chase & Co.'s target price would indicate a potential downside of 8.13% from the stock's previous close.

A number of other research analysts have also commented on CAKE. Bank of America boosted their price target on shares of Cheesecake Factory from $66.00 to $79.00 and gave the company a "neutral" rating in a research report on Thursday, July 2nd. Wells Fargo & Company increased their price objective on Cheesecake Factory from $65.00 to $75.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 16th. Stephens reissued a "positive" rating on shares of Cheesecake Factory in a research note on Wednesday, July 29th. Argus boosted their target price on Cheesecake Factory from $72.00 to $110.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Weiss Ratings upgraded Cheesecake Factory from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $83.47.

Cheesecake Factory Trading Up 0.7%

Shares of CAKE opened at $114.29 on Wednesday. Cheesecake Factory has a twelve month low of $43.07 and a twelve month high of $118.46. The stock has a market cap of $5.69 billion, a PE ratio of 30.82, a P/E/G ratio of 2.05 and a beta of 1.00. The company has a quick ratio of 0.52, a current ratio of 0.59 and a debt-to-equity ratio of 1.08. The business's 50-day moving average price is $91.94 and its 200-day moving average price is $72.28.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating analysts' consensus estimates of $1.18 by $0.26. The company had revenue of $1.03 billion during the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. Cheesecake Factory's revenue was up 7.7% compared to the same quarter last year. During the same period last year, the business earned $1.16 earnings per share. On average, equities analysts forecast that Cheesecake Factory will post 4.47 EPS for the current fiscal year.

Insider Activity

In other Cheesecake Factory news, Chairman David Overton sold 94,145 shares of Cheesecake Factory stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $106.27, for a total transaction of $10,004,789.15. Following the transaction, the chairman directly owned 89,805 shares of the company's stock, valued at approximately $9,543,577.35. This trade represents a 51.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, President David M. Gordon sold 31,950 shares of the company's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $110.03, for a total transaction of $3,515,458.50. Following the completion of the sale, the president directly owned 26,875 shares of the company's stock, valued at $2,957,056.25. This trade represents a 54.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 216,239 shares of company stock valued at $22,463,500. Insiders own 8.00% of the company's stock.

Institutional Trading of Cheesecake Factory

Several institutional investors have recently added to or reduced their stakes in CAKE. Allworth Financial LP bought a new stake in shares of Cheesecake Factory in the 2nd quarter valued at about $36,000. Global Retirement Partners LLC boosted its holdings in Cheesecake Factory by 661.7% during the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after acquiring an additional 622 shares during the period. NFSG Corp grew its position in Cheesecake Factory by 115.8% during the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock worth $37,000 after acquiring an additional 366 shares during the last quarter. Root Financial Partners LLC grew its position in Cheesecake Factory by 973.2% during the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock worth $44,000 after acquiring an additional 798 shares during the last quarter. Finally, Arax Advisory Partners purchased a new position in Cheesecake Factory in the 4th quarter worth approximately $50,000. 94.48% of the stock is currently owned by hedge funds and other institutional investors.

About Cheesecake Factory

The Cheesecake Factory Incorporated NASDAQ: CAKE is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.

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