Chefs' Warehouse (NASDAQ:CHEF) Cut to "Equal Weight" at Morgan Stanley

Key Points

• Morgan Stanley downgraded Chefs' Warehouse from overweight to equal weight and set a $97 price target, implying a slight downside from the current share price.
• Analyst sentiment is mixed: recent ratings changes include price-target raises from Benchmark and BTIG, while Weiss Ratings and Zacks lowered their views. Overall, the stock now carries a Moderate Buy consensus with an average target of $91.86.
• Chefs' Warehouse reported strong quarterly results, with EPS of $0.40 beating estimates and revenue of $1.06 billion topping forecasts, while shares have been trading near their 52-week high after a sharp run-up.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) was downgraded by equities research analysts at Morgan Stanley from an "overweight" rating to an "equal weight" rating in a research note issued on Wednesday, Marketbeat.com reports. They currently have a $97.00 price target on the stock. Morgan Stanley's target price indicates a potential downside of 1.81% from the stock's current price.

A number of other equities research analysts have also recently weighed in on the company. Benchmark lifted their price objective on Chefs' Warehouse from $90.00 to $106.00 and gave the company a "buy" rating in a research note on Tuesday. Weiss Ratings lowered Chefs' Warehouse from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 1st. UBS Group lowered their target price on Chefs' Warehouse from $83.00 to $80.00 and set a "buy" rating for the company in a report on Thursday, April 23rd. BTIG Research lifted their target price on Chefs' Warehouse from $82.00 to $100.00 and gave the company a "buy" rating in a research report on Thursday, June 11th. Finally, Zacks Research lowered shares of Chefs' Warehouse from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Four analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $91.86.

Chefs' Warehouse Stock Performance

NASDAQ:CHEF opened at $98.79 on Wednesday. The company has a debt-to-equity ratio of 1.18, a quick ratio of 1.33 and a current ratio of 2.18. The stock has a market capitalization of $4.03 billion, a P/E ratio of 54.88 and a beta of 1.39. The company has a 50 day moving average price of $86.78 and a 200 day moving average price of $72.19. Chefs' Warehouse has a fifty-two week low of $53.20 and a fifty-two week high of $99.47.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last posted its earnings results on Wednesday, April 29th. The company reported $0.40 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.17. Chefs' Warehouse had a net margin of 1.87% and a return on equity of 15.54%. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $1.01 billion. During the same quarter last year, the firm earned $0.25 EPS. The firm's revenue for the quarter was up 11.4% on a year-over-year basis. Equities research analysts forecast that Chefs' Warehouse will post 2.31 EPS for the current year.

Insider Activity at Chefs' Warehouse

In related news, insider Christina Polychroni sold 4,500 shares of the firm's stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $79.21, for a total value of $356,445.00. Following the sale, the insider owned 24,642 shares of the company's stock, valued at $1,951,892.82. This trade represents a 15.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Christopher Pappas sold 125,000 shares of the business's stock in a transaction that occurred on Tuesday, May 5th. The stock was sold at an average price of $78.00, for a total value of $9,750,000.00. Following the sale, the chief executive officer owned 2,189,453 shares of the company's stock, valued at approximately $170,777,334. The trade was a 5.40% decrease in their position. The SEC filing for this sale provides additional information. 11.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Chefs' Warehouse

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Hantz Financial Services Inc. boosted its stake in Chefs' Warehouse by 229.5% in the fourth quarter. Hantz Financial Services Inc. now owns 458 shares of the company's stock valued at $29,000 after acquiring an additional 319 shares in the last quarter. Caitong International Asset Management Co. Ltd increased its position in shares of Chefs' Warehouse by 515.3% during the third quarter. Caitong International Asset Management Co. Ltd now owns 523 shares of the company's stock worth $31,000 after purchasing an additional 438 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in shares of Chefs' Warehouse during the fourth quarter worth about $31,000. Osaic Holdings Inc. lifted its holdings in shares of Chefs' Warehouse by 30.7% in the 2nd quarter. Osaic Holdings Inc. now owns 800 shares of the company's stock valued at $51,000 after purchasing an additional 188 shares during the last quarter. Finally, Parallel Advisors LLC lifted its holdings in shares of Chefs' Warehouse by 98.7% in the 1st quarter. Parallel Advisors LLC now owns 926 shares of the company's stock valued at $55,000 after purchasing an additional 460 shares during the last quarter. 91.55% of the stock is currently owned by institutional investors and hedge funds.

Chefs' Warehouse Company Profile

Chefs' Warehouse, Inc is a specialty food distributor that supplies a broad range of high‐end ingredients and culinary products to professional chefs, restaurants, hotels, and other foodservice operators. Headquartered in Maspeth, New York, the company sources its portfolio from local artisans, boutique producers and leading global suppliers. Its core offerings include fresh and frozen proteins, specialty cuts of meat and seafood, handcrafted cheeses and charcuterie, seasonal produce, value‐added preparations, pantry staples and premium desserts and beverages.

The company operates a network of distribution centers strategically located in major metropolitan markets across North America.

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