Chefs' Warehouse (NASDAQ:CHEF) Sees Strong Trading Volume - Time to Buy?

Key Points

• Chefs’ Warehouse shares saw unusual trading activity, with volume jumping 222% to 1.53 million shares as the stock rose to $99.22 from $97.71.
• Analyst sentiment remains mixed but constructive: several firms raised price targets, with BTIG and Benchmark issuing buy ratings, while others trimmed ratings or targets. The stock now carries a consensus Moderate Buy with a target price of $91.86.
• Recent earnings were stronger than expected, as Chefs’ Warehouse reported $0.40 EPS on $1.06 billion in revenue, beating estimates and posting 11.4% year-over-year revenue growth.

Shares of The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report) saw strong trading volume on Thursday . 1,532,790 shares changed hands during trading, an increase of 222% from the previous session's volume of 475,429 shares.The stock last traded at $99.22 and had previously closed at $97.71.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. BTIG Research lifted their target price on shares of Chefs' Warehouse from $82.00 to $100.00 and gave the company a "buy" rating in a research note on Thursday, June 11th. Morgan Stanley lowered Chefs' Warehouse from an "overweight" rating to an "equal weight" rating and increased their price target for the stock from $83.00 to $97.00 in a research report on Wednesday. UBS Group cut their price objective on Chefs' Warehouse from $83.00 to $80.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Weiss Ratings lowered Chefs' Warehouse from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 1st. Finally, Benchmark increased their target price on Chefs' Warehouse from $90.00 to $106.00 and gave the stock a "buy" rating in a report on Tuesday. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $91.86.

Chefs' Warehouse Stock Performance

The stock's 50 day simple moving average is $87.13 and its two-hundred day simple moving average is $72.43. The company has a market capitalization of $4.10 billion, a P/E ratio of 55.80 and a beta of 1.39. The company has a debt-to-equity ratio of 1.18, a current ratio of 2.18 and a quick ratio of 1.33.

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

Insiders Place Their Bets

In other news, insider Christina Polychroni sold 4,500 shares of Chefs' Warehouse stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $79.21, for a total value of $356,445.00. Following the completion of the sale, the insider directly owned 24,642 shares of the company's stock, valued at approximately $1,951,892.82. This trade represents a 15.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Christopher Pappas sold 125,000 shares of the business's stock in a transaction 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 currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Hantz Financial Services Inc. grew its position in shares of Chefs' Warehouse by 229.5% during the 4th quarter. Hantz Financial Services Inc. now owns 458 shares of the company's stock worth $29,000 after buying an additional 319 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in Chefs' Warehouse by 515.3% in the third quarter. Caitong International Asset Management Co. Ltd now owns 523 shares of the company's stock valued at $31,000 after acquiring an additional 438 shares during the last quarter. Global Retirement Partners LLC bought a new position in Chefs' Warehouse in the fourth quarter valued at approximately $31,000. Osaic Holdings Inc. grew its holdings in Chefs' Warehouse by 30.7% during the 2nd quarter. Osaic Holdings Inc. now owns 800 shares of the company's stock worth $51,000 after acquiring an additional 188 shares during the period. Finally, Parallel Advisors LLC grew its holdings in Chefs' Warehouse by 98.7% during the 1st quarter. Parallel Advisors LLC now owns 926 shares of the company's stock worth $55,000 after acquiring an additional 460 shares during the period. 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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