Cheesecake Factory (NASDAQ:CAKE) Price Target Raised to $105.00 at Wells Fargo & Company

Key Points

• Wells Fargo raised Cheesecake Factory’s price target from $90 to $105 while maintaining an “equal weight” rating, implying essentially no upside or downside from the prior close. The broader analyst consensus remains “Hold,” with an average target of $85.47.
• Cheesecake Factory reported quarterly EPS of $1.44, beating expectations of $1.18, while revenue reached $1.03 billion and increased 7.7% year over year.
• Insiders sold 213,749 shares worth approximately $22.3 million over the past three months, while institutional investors own a substantial 94.48% of the company’s stock.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) had its price target lifted by research analysts at Wells Fargo & Company from $90.00 to $105.00 in a research report issued on Tuesday, Benzinga reports. The firm presently has an "equal weight" rating on the restaurant operator's stock. Wells Fargo & Company's price target would indicate a potential downside of 0.16% from the stock's previous close.

Other equities research analysts have also issued research reports about the company. Northcoast Research lowered Cheesecake Factory from a "buy" rating to a "neutral" rating in a research report on Monday, June 15th. JPMorgan Chase & Co. increased their target price on Cheesecake Factory from $92.00 to $105.00 and gave the company a "neutral" rating in a research report on Wednesday, August 26th. Bank of America lifted their price target on Cheesecake Factory from $66.00 to $79.00 and gave the company a "neutral" rating in a research note on Thursday, July 2nd. Jefferies Financial Group cut Cheesecake Factory from a "buy" rating to a "hold" rating and boosted their price target for the stock from $75.00 to $88.00 in a report on Wednesday, July 29th. Finally, Argus upped their price objective on Cheesecake Factory from $72.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $85.47.

Cheesecake Factory Stock Up 2.4%

Shares of CAKE opened at $105.17 on Tuesday. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52. Cheesecake Factory has a one year low of $43.07 and a one year high of $118.46. The company has a market cap of $5.23 billion, a P/E ratio of 28.50, a P/E/G ratio of 1.68 and a beta of 1.01. The firm has a 50 day simple moving average of $100.16 and a two-hundred day simple moving average of $76.77.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. The firm's quarterly revenue was up 7.7% compared to the same quarter last year. During the same period in the prior year, the company earned $1.16 EPS. Research analysts forecast that Cheesecake Factory will post 4.53 EPS for the current fiscal year.

Insider Buying and Selling at Cheesecake Factory

In other news, insider Ashley Hanscom sold 3,500 shares of Cheesecake Factory stock in a transaction dated Thursday, July 30th. The stock was sold at an average price of $100.00, for a total value of $350,000.00. Following the completion of the transaction, the insider directly owned 7,541 shares of the company's stock, valued at approximately $754,100. This trade represents a 31.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman David Overton sold 94,145 shares of Cheesecake Factory stock in a transaction that occurred on Wednesday, August 5th. The stock was sold at an average price of $106.27, for a total value of $10,004,789.15. Following the completion of the sale, the chairman owned 89,805 shares of the company's stock, valued at approximately $9,543,577.35. The trade was a 51.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 213,749 shares of company stock valued at $22,301,899 over the last three months. 8.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Cheesecake Factory

Several institutional investors have recently made changes to their positions in the stock. California State Teachers Retirement System increased its holdings in Cheesecake Factory by 7,444.0% during the 2nd quarter. California State Teachers Retirement System now owns 4,192,633 shares of the restaurant operator's stock worth $333,482,000 after purchasing an additional 4,137,057 shares in the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Cheesecake Factory by 2.4% in the first quarter. Dimensional Fund Advisors LP now owns 1,242,143 shares of the restaurant operator's stock valued at $68,008,000 after purchasing an additional 29,037 shares in the last quarter. Bank of New York Mellon Corp bought a new position in shares of Cheesecake Factory in the second quarter valued at approximately $38,020,000. Bamco Inc. NY purchased a new position in shares of Cheesecake Factory during the second quarter valued at approximately $35,793,000. Finally, Fisher Asset Management LLC boosted its position in shares of Cheesecake Factory by 7.2% during the fourth quarter. Fisher Asset Management LLC now owns 503,184 shares of the restaurant operator's stock valued at $25,401,000 after buying an additional 33,959 shares during the last quarter. Institutional investors and hedge funds own 94.48% of the company's stock.

About Cheesecake Factory

The Cheesecake Factory Incorporated NASDAQ: CAKE operates full-service casual dining restaurants in the United States. Its flagship Cheesecake Factory restaurants offer an extensive menu of made-to-order dishes spanning American and international cuisines, along with a broad selection of cheesecakes and other desserts.

The company also operates North Italia, an Italian restaurant concept, and restaurants developed through Fox Restaurant Concepts. In addition, its bakery division produces cheesecakes and other baked goods for the company's restaurants, retailers, and other foodservice customers.

Founded in 1978 by David Overton, The Cheesecake Factory began as a bakery business before opening its first restaurant in Beverly Hills, California, in 1978.

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