Cheesecake Factory (NASDAQ:CAKE) Shares Pass Above 200 Day Moving Average - Here's What Happened

Key Points

• Cheesecake Factory shares rose above their 200-day moving average, trading as high as $62.08 and last changing hands at $61.17. The stock’s 200-day average was $55.82.
• Recent earnings topped expectations, with the company reporting $1.05 EPS versus the $1.03 consensus and revenue of $978.83 million, up 5.6% year over year.
• The company announced a quarterly dividend of $0.30 per share, payable May 26 to shareholders of record on May 13, implying a 2.0% annualized yield.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report)'s share price passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $55.82 and traded as high as $62.08. Cheesecake Factory shares last traded at $61.17, with a volume of 677,498 shares trading hands.

Wall Street Analyst Weigh In

A number of research analysts have issued reports on CAKE shares. Stephens lifted their target price on Cheesecake Factory from $61.00 to $65.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Barclays lifted their target price on Cheesecake Factory from $58.00 to $60.00 and gave the company an "underweight" rating in a research report on Thursday, April 30th. Morgan Stanley lifted their target price on Cheesecake Factory from $49.00 to $50.00 and gave the company an "underweight" rating in a research report on Tuesday, January 20th. Mizuho set a $75.00 target price on Cheesecake Factory in a research report on Thursday, February 19th. Finally, Oppenheimer lifted their target price on Cheesecake Factory from $68.00 to $72.00 and gave the company an "outperform" rating in a research report on Tuesday, April 21st. Six research analysts have rated the stock with a Buy rating, eight have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus target price of $64.00.

Cheesecake Factory Stock Down 0.8%

The company has a quick ratio of 0.53, a current ratio of 0.59 and a debt-to-equity ratio of 1.22. The stock has a market capitalization of $3.04 billion, a price-to-earnings ratio of 17.89, a price-to-earnings-growth ratio of 1.47 and a beta of 1.04. The stock has a 50 day moving average price of $59.64 and a 200 day moving average price of $55.82.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.05 earnings per share for the quarter, topping the consensus estimate of $1.03 by $0.02. Cheesecake Factory had a net margin of 4.34% and a return on equity of 43.74%. The company had revenue of $978.83 million for the quarter, compared to analysts' expectations of $964.57 million. During the same quarter in the previous year, the firm posted $0.93 earnings per share. Cheesecake Factory's revenue for the quarter was up 5.6% on a year-over-year basis. As a group, analysts forecast that The Cheesecake Factory Incorporated will post 4.03 EPS for the current year.

Cheesecake Factory Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Investors of record on Wednesday, May 13th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Wednesday, May 13th. This represents a $1.20 annualized dividend and a dividend yield of 2.0%. Cheesecake Factory's payout ratio is currently 35.09%.

Insider Buying and Selling

In related news, EVP Spero G. Alex sold 4,790 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The stock was sold at an average price of $66.00, for a total value of $316,140.00. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Matthew Eliot Clark sold 7,000 shares of the company's stock in a transaction that occurred on Wednesday, February 25th. The shares were sold at an average price of $65.70, for a total value of $459,900.00. Following the completion of the sale, the chief financial officer owned 44,090 shares in the company, valued at $2,896,713. The trade was a 13.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 124,582 shares of company stock valued at $7,684,016 over the last quarter. 8.00% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Cheesecake Factory

Institutional investors have recently modified their holdings of the company. Salomon & Ludwin LLC boosted its stake in shares of Cheesecake Factory by 226.5% in the 4th quarter. Salomon & Ludwin LLC now owns 604 shares of the restaurant operator's stock valued at $33,000 after purchasing an additional 419 shares during the last quarter. Global Retirement Partners LLC boosted its stake in shares of Cheesecake Factory by 661.7% in the 4th quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after purchasing an additional 622 shares during the last quarter. NFSG Corp boosted its stake in shares of Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after purchasing an additional 366 shares during the last quarter. Root Financial Partners LLC boosted its stake in shares of Cheesecake Factory by 973.2% in the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock valued at $44,000 after purchasing an additional 798 shares during the last quarter. Finally, Arax Advisory Partners bought a new stake in shares of Cheesecake Factory in the 4th quarter valued at $50,000. 94.48% of the stock is owned by 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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