Chefs' Warehouse (NASDAQ:CHEF) Shares Gap Up After Earnings Beat

Key Points

• Chefs' Warehouse shares gapped up from $61.56 to $64.64 after reporting an earnings per share (EPS) of $0.52, significantly beating the forecast of $0.42.
• Analysts have given Chefs' Warehouse a consensus rating of "Buy", with price targets ranging up to $72.00.
• Insider trading activity saw CAO Tim McCauley sell 17,500 shares for approximately $1.14 million, reducing his stake by over 25%.

The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report) shares gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $61.56, but opened at $64.64. Chefs' Warehouse shares last traded at $66.47, with a volume of 141,439 shares changing hands.

The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.45 by $0.07. The firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $1.01 billion. Chefs' Warehouse had a net margin of 1.76% and a return on equity of 13.60%. Chefs' Warehouse's quarterly revenue was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.40 earnings per share.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CHEF. BTIG Research restated a "buy" rating on shares of Chefs' Warehouse in a research report on Friday, May 23rd. Wall Street Zen upgraded shares of Chefs' Warehouse from a "hold" rating to a "buy" rating in a research note on Saturday, June 21st. Benchmark increased their price target on shares of Chefs' Warehouse from $68.00 to $79.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, UBS Group lifted their target price on shares of Chefs' Warehouse from $68.00 to $72.00 and gave the stock a "buy" rating in a report on Monday. Seven equities research analysts have rated the stock with a buy rating, Based on data from MarketBeat.com, the company has an average rating of "Buy" and a consensus target price of $70.40.

Insider Transactions at Chefs' Warehouse

In other Chefs' Warehouse news, CAO Tim Mccauley sold 17,500 shares of the business's stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $65.07, for a total transaction of $1,138,725.00. Following the sale, the chief accounting officer directly owned 52,050 shares of the company's stock, valued at $3,386,893.50. The trade was a 25.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 11.90% of the stock is currently owned by corporate insiders.

Institutional Trading of Chefs' Warehouse

A number of large investors have recently added to or reduced their stakes in CHEF. KLP Kapitalforvaltning AS bought a new position in Chefs' Warehouse during the fourth quarter worth about $528,000. Wellington Management Group LLP raised its stake in shares of Chefs' Warehouse by 193.1% during the fourth quarter. Wellington Management Group LLP now owns 2,445,626 shares of the company's stock worth $120,618,000 after acquiring an additional 1,611,240 shares in the last quarter. Trexquant Investment LP raised its stake in shares of Chefs' Warehouse by 26.0% during the fourth quarter. Trexquant Investment LP now owns 35,933 shares of the company's stock worth $1,772,000 after acquiring an additional 7,417 shares in the last quarter. ExodusPoint Capital Management LP raised its stake in shares of Chefs' Warehouse by 200.6% during the fourth quarter. ExodusPoint Capital Management LP now owns 52,962 shares of the company's stock worth $2,612,000 after acquiring an additional 35,345 shares in the last quarter. Finally, Envestnet Asset Management Inc. purchased a new position in shares of Chefs' Warehouse during the fourth quarter worth approximately $224,000. Hedge funds and other institutional investors own 91.55% of the company's stock.

Chefs' Warehouse Trading Down 0.6%

The stock has a market cap of $2.77 billion, a P/E ratio of 42.54 and a beta of 1.74. The stock's fifty day moving average price is $63.51 and its 200 day moving average price is $58.99. The company has a current ratio of 2.01, a quick ratio of 1.27 and a debt-to-equity ratio of 1.24.

Chefs' Warehouse Company Profile

The Chefs' Warehouse, Inc, together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company's product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour.