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Barclays Raises Cheesecake Factory (NASDAQ:CAKE) Price Target to $62.00

Cheesecake Factory logo with Retail/Wholesale background

Key Points

  • Barclays has raised its price target for Cheesecake Factory's stock from $57 to $62, maintaining an "underweight" rating which suggests a potential downside of 6.95% from the current price.
  • Other brokerages have also increased their targets for Cheesecake Factory, with Wells Fargo raising theirs from $60 to $65, while Bank of America adjusted their target from $61 to $67.
  • Cheesecake Factory's stock recently increased by 5.5%, reaching $66.63, and the company reported a quarterly EPS of $1.16, exceeding estimates by $0.10.
  • Five stocks we like better than Cheesecake Factory.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) had its target price increased by Barclays from $57.00 to $62.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The firm presently has an "underweight" rating on the restaurant operator's stock. Barclays's target price indicates a potential downside of 0.61% from the company's previous close.

CAKE has been the topic of several other research reports. Bank of America raised their target price on shares of Cheesecake Factory from $61.00 to $67.00 and gave the company a "neutral" rating in a report on Friday, July 18th. JPMorgan Chase & Co. raised their target price on shares of Cheesecake Factory from $50.00 to $58.00 and gave the company an "underweight" rating in a report on Wednesday, June 25th. Oppenheimer raised their target price on shares of Cheesecake Factory from $65.00 to $75.00 and gave the company an "outperform" rating in a report on Friday, July 11th. Argus set a $60.00 target price on shares of Cheesecake Factory in a report on Wednesday, May 14th. Finally, Raymond James Financial raised their target price on shares of Cheesecake Factory from $63.00 to $70.00 and gave the company an "outperform" rating in a report on Thursday, July 17th. Four research analysts have rated the stock with a sell rating, six have given a hold rating and seven have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $61.06.

Check Out Our Latest Stock Analysis on CAKE

Cheesecake Factory Stock Down 2.4%

Shares of CAKE traded down $1.53 during mid-day trading on Wednesday, hitting $62.38. 1,941,239 shares of the company's stock were exchanged, compared to its average volume of 1,545,028. The company has a market cap of $3.09 billion, a price-to-earnings ratio of 19.19, a P/E/G ratio of 1.61 and a beta of 1.17. Cheesecake Factory has a fifty-two week low of $33.50 and a fifty-two week high of $69.70. The company has a debt-to-equity ratio of 1.85, a quick ratio of 0.43 and a current ratio of 0.53. The stock's 50-day moving average is $61.06 and its 200-day moving average is $54.28.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.06 by $0.10. The business had revenue of $955.83 million for the quarter, compared to analysts' expectations of $945.82 million. Cheesecake Factory had a net margin of 4.33% and a return on equity of 46.15%. The business's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.09 earnings per share. On average, sell-side analysts anticipate that Cheesecake Factory will post 3.71 earnings per share for the current fiscal year.

Insider Buying and Selling at Cheesecake Factory

In other news, Director Alexander L. Cappello sold 12,388 shares of the firm's stock in a transaction that occurred on Thursday, July 31st. The shares were sold at an average price of $65.88, for a total transaction of $816,121.44. Following the transaction, the director directly owned 6,806 shares in the company, valued at approximately $448,379.28. This trade represents a 64.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Matthew Eliot Clark sold 42,900 shares of the firm's stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $56.00, for a total transaction of $2,402,400.00. Following the transaction, the chief financial officer owned 40,878 shares in the company, valued at approximately $2,289,168. This trade represents a 51.21% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 145,388 shares of company stock valued at $8,273,113. 8.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Cheesecake Factory

A number of hedge funds have recently modified their holdings of the business. Wellington Management Group LLP lifted its holdings in shares of Cheesecake Factory by 156.7% during the first quarter. Wellington Management Group LLP now owns 3,045,705 shares of the restaurant operator's stock worth $148,204,000 after purchasing an additional 1,859,194 shares during the period. Westwood Holdings Group Inc. acquired a new stake in shares of Cheesecake Factory during the first quarter worth $75,795,000. Invesco Ltd. lifted its holdings in shares of Cheesecake Factory by 83.5% during the first quarter. Invesco Ltd. now owns 2,591,205 shares of the restaurant operator's stock worth $126,088,000 after purchasing an additional 1,178,722 shares during the period. Driehaus Capital Management LLC acquired a new stake in shares of Cheesecake Factory during the first quarter worth $47,720,000. Finally, Victory Capital Management Inc. lifted its holdings in shares of Cheesecake Factory by 64.1% during the first quarter. Victory Capital Management Inc. now owns 1,766,131 shares of the restaurant operator's stock worth $85,940,000 after purchasing an additional 689,784 shares during the period. 94.48% of the stock is currently owned by hedge funds and other institutional investors.

About Cheesecake Factory

(Get Free Report)

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.

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