Chefs' Warehouse (NASDAQ:CHEF) Trading Down 4.3% - Time to Sell?

Key Points

• Chefs' Warehouse stock has recently seen a decline of 4.3%, trading at $55.80 after previously closing at $58.33, with trading volume significantly down 65% from the average.
• Analysts have mixed ratings on the company, with Zacks downgrading it to "hold," while UBS Group raised its price target to $72.00, reflecting a consensus average rating of "Moderate Buy" with a price target of $69.67.
• The company reported a quarterly earnings per share (EPS) of $0.52, exceeding expectations, and an 8.4% year-over-year revenue increase, reflecting strong financial performance despite recent stock performance challenges.

The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report) traded down 4.3% during trading on Wednesday . The stock traded as low as $55.63 and last traded at $55.80. 169,285 shares were traded during trading, a decline of 65% from the average session volume of 487,157 shares. The stock had previously closed at $58.33.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Zacks Research downgraded shares of Chefs' Warehouse from a "strong-buy" rating to a "hold" rating in a report on Monday. UBS Group upped their price objective on shares of Chefs' Warehouse from $68.00 to $72.00 and gave the company a "buy" rating in a report on Monday, July 28th. Piper Sandler assumed coverage on shares of Chefs' Warehouse in a report on Wednesday, August 27th. They set a "neutral" rating and a $66.00 price objective on the stock. Benchmark upped their price objective on shares of Chefs' Warehouse from $68.00 to $79.00 and gave the company a "buy" rating in a report on Thursday, July 31st. Finally, Wall Street Zen raised shares of Chefs' Warehouse from a "hold" rating to a "buy" rating in a report on Saturday, September 20th. Six investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $69.67.

Chefs' Warehouse Stock Performance

The stock has a market capitalization of $2.25 billion, a PE ratio of 34.26 and a beta of 1.76. The company has a debt-to-equity ratio of 1.24, a current ratio of 2.01 and a quick ratio of 1.17. The business's fifty day moving average price is $63.48 and its 200-day moving average price is $60.77.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last announced its quarterly earnings results on Wednesday, July 30th. The company reported $0.52 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.45 by $0.07. The firm had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.01 billion. Chefs' Warehouse had a net margin of 1.76% and a return on equity of 13.60%. The company's revenue for the quarter was up 8.4% on a year-over-year basis. During the same period in the prior year, the firm posted $0.40 earnings per share. Chefs' Warehouse has set its FY 2025 guidance at EPS. As a group, equities research analysts expect that The Chefs' Warehouse, Inc. will post 1.73 EPS for the current year.

Insiders Place Their Bets

In related news, CAO Tim Mccauley sold 17,500 shares of the firm'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 value 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. This trade represents a 25.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 11.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Chefs' Warehouse

Institutional investors and hedge funds have recently bought and sold shares of the stock. Squarepoint Ops LLC purchased a new position in shares of Chefs' Warehouse during the fourth quarter worth approximately $252,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Chefs' Warehouse by 13.0% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 86,789 shares of the company's stock worth $4,280,000 after acquiring an additional 10,018 shares in the last quarter. GAMMA Investing LLC raised its stake in shares of Chefs' Warehouse by 6,863.8% during the first quarter. GAMMA Investing LLC now owns 83,705 shares of the company's stock worth $4,559,000 after acquiring an additional 82,503 shares in the last quarter. Rhumbline Advisers raised its stake in shares of Chefs' Warehouse by 1.7% during the first quarter. Rhumbline Advisers now owns 95,003 shares of the company's stock worth $5,174,000 after acquiring an additional 1,623 shares in the last quarter. Finally, SG Americas Securities LLC purchased a new position in shares of Chefs' Warehouse during the first quarter worth approximately $420,000. 91.55% of the stock is owned by hedge funds and other institutional investors.

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.

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