Chefs' Warehouse (NASDAQ:CHEF) Stock Rating Lowered by Zacks Research

Key Points

• Zacks Research downgraded Chefs' Warehouse from strong-buy to hold, while other firms remain split with a mix of Buy and Hold ratings.
• The stock was trading near its 52-week high at $96.10, and the company now has a market cap of about $3.92 billion with an average analyst target price of $83.83.
• Chefs' Warehouse recently posted strong quarterly results, including earnings of $0.40 per share versus $0.23 expected and revenue of $1.06 billion, up 11.4% year over year.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

A number of other brokerages also recently issued reports on CHEF. Morgan Stanley reiterated an "overweight" rating and set a $83.00 price target on shares of Chefs' Warehouse in a research report on Thursday, April 30th. Wall Street Zen cut Chefs' Warehouse from a "buy" rating to a "hold" rating in a research report on Monday. Weiss Ratings downgraded Chefs' Warehouse from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, May 1st. BTIG Research increased 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, UBS Group dropped their price target on shares of Chefs' Warehouse from $83.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday, April 23rd. Four equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $83.83.

Chefs' Warehouse Stock Performance

Shares of NASDAQ CHEF opened at $96.10 on Monday. The company has a market capitalization of $3.92 billion, a PE ratio of 53.39 and a beta of 1.44. 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 company's fifty day moving average price is $81.28 and its 200 day moving average price is $69.87. Chefs' Warehouse has a 1 year low of $53.20 and a 1 year high of $97.63.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last released its quarterly earnings data on Wednesday, April 29th. The company reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.23 by $0.17. Chefs' Warehouse had a net margin of 1.87% and a return on equity of 15.54%. The company had revenue of $1.06 billion during the quarter, compared to analysts' expectations of $1.01 billion. During the same quarter in the previous year, the company earned $0.25 earnings per share. The firm's revenue for the quarter was up 11.4% on a year-over-year basis. On average, research analysts predict that Chefs' Warehouse will post 2.37 earnings per share for the current year.

Insider Activity at Chefs' Warehouse

In related news, insider Christina Polychroni sold 4,500 shares of the business's stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $79.21, for a total transaction of $356,445.00. Following the completion of the sale, the insider directly owned 24,642 shares in the company, valued at approximately $1,951,892.82. The trade was a 15.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Christopher Pappas sold 125,000 shares of the stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $78.00, for a total value of $9,750,000.00. Following the completion of the transaction, the chief executive officer directly owned 2,189,453 shares of the company's stock, valued at approximately $170,777,334. This represents a 5.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 11.10% of the company's stock.

Institutional Investors Weigh In On Chefs' Warehouse

A number of hedge funds have recently modified their holdings of the business. AQR Capital Management LLC purchased a new position in shares of Chefs' Warehouse in the first quarter worth about $352,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in Chefs' Warehouse by 6.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 21,152 shares of the company's stock valued at $1,152,000 after acquiring an additional 1,247 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Chefs' Warehouse by 50.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 130,382 shares of the company's stock valued at $7,101,000 after acquiring an additional 43,593 shares during the last quarter. Strs Ohio purchased a new position in Chefs' Warehouse in the 1st quarter worth approximately $98,000. Finally, Marshall Wace LLP purchased a new position in Chefs' Warehouse in the 2nd quarter worth approximately $243,000. 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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