Cheesecake Factory (NASDAQ:CAKE) Stock Price Expected to Rise, Mizuho Analyst Says

Key Points

• Mizuho raised Cheesecake Factory’s price target from $93 to $110 while maintaining a neutral rating; the new target implied about 2.17% downside from the prior close.
• Analyst sentiment remains mixed, with MarketBeat reporting an overall “Hold” rating and an average price target of $93.80, despite several firms raising their targets.
• Cheesecake Factory exceeded quarterly expectations, reporting $1.44 in EPS versus a $1.18 consensus estimate and $1.03 billion in revenue, up 7.7% year over year. Meanwhile, insiders sold approximately $22.3 million of stock over the past 90 days.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) had its price objective lifted by investment analysts at Mizuho from $93.00 to $110.00 in a note issued to investors on Friday, Benzinga reports. The brokerage presently has a "neutral" rating on the restaurant operator's stock. Mizuho's target price points to a potential downside of 2.17% from the stock's previous close.

A number of other analysts have also commented on CAKE. Argus lifted their price target on shares of Cheesecake Factory from $72.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Morgan Stanley boosted their price objective on shares of Cheesecake Factory from $80.00 to $87.00 and gave the company an "equal weight" rating in a report on Thursday, October 15th. Oppenheimer increased their price objective on shares of Cheesecake Factory from $101.00 to $122.00 and gave the company an "outperform" rating in a research report on Tuesday, October 6th. Stephens raised their target price on shares of Cheesecake Factory from $93.00 to $100.00 and gave the stock an "equal weight" rating in a report on Thursday, October 15th. Finally, Bank of America raised their target price on shares of Cheesecake Factory from $66.00 to $79.00 and gave the stock a "neutral" rating in a report on Thursday, July 2nd. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $93.80.

Cheesecake Factory Trading Down 1.7%

Cheesecake Factory stock opened at $112.44 on Friday. 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 $118.63. The stock has a market capitalization of $5.60 billion, a PE ratio of 30.47, a price-to-earnings-growth ratio of 1.84 and a beta of 1.04. The business's fifty day moving average is $107.83 and its 200 day moving average is $86.27.

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, topping the consensus estimate of $1.18 by $0.26. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%. The company had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $999.54 million. During the same period last year, the company earned $1.16 EPS. Cheesecake Factory's revenue for the quarter was up 7.7% on a year-over-year basis. On average, sell-side analysts predict that Cheesecake Factory will post 4.63 EPS for the current year.

Insider Buying and Selling

In other Cheesecake Factory news, EVP Scarlett May sold 7,978 shares of the firm's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $102.66, for a total value of $819,021.48. Following the transaction, the executive vice president directly owned 18,241 shares of the company's stock, valued at approximately $1,872,621.06. This trade represents a 30.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Chairman David Overton sold 94,145 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $106.27, for a total value of $10,004,789.15. Following the sale, the chairman owned 89,805 shares of the company's stock, valued at approximately $9,543,577.35. This represents 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 in the last 90 days. Insiders own 8.00% of the company's stock.

Institutional Trading of Cheesecake Factory

Several large investors have recently added to or reduced their stakes in the business. Money Concepts Capital Corp increased its holdings in Cheesecake Factory by 3.8% during the first quarter. Money Concepts Capital Corp now owns 5,802 shares of the restaurant operator's stock valued at $318,000 after buying an additional 210 shares during the last quarter. SBI Securities Co. Ltd. raised its position in Cheesecake Factory by 28.2% in the third quarter. SBI Securities Co. Ltd. now owns 1,146 shares of the restaurant operator's stock worth $121,000 after acquiring an additional 252 shares during the period. Root Financial Partners LLC purchased a new position in shares of Cheesecake Factory during the 3rd quarter worth $35,000. NFSG Corp boosted its stake in shares of 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. Finally, Abel Hall LLC boosted its stake in shares of Cheesecake Factory by 8.5% during the 1st quarter. Abel Hall LLC now owns 4,672 shares of the restaurant operator's stock worth $256,000 after acquiring an additional 367 shares during the last quarter. 94.48% of the stock is currently owned by institutional investors.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated is a restaurant company best known for The Cheesecake Factory, a full-service casual dining brand offering an extensive menu of American and international-inspired dishes, along with a broad selection of cheesecakes and other desserts. The company also operates North Italia, an Italian restaurant concept, and owns Fox Restaurant Concepts, which develops and operates additional restaurant brands, including Flower Child and Culinary Dropout.

The company was founded by David Overton, who opened the first Cheesecake Factory restaurant in Beverly Hills, California, in 1978 after his parents began a cheesecake business.

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