Chefs' Warehouse (NASDAQ:CHEF) Stock Price Down 5.7% - Time to Sell?

Key Points

• Chefs' Warehouse's stock price dropped 5.7% to $61.22, significantly lower than its previous closing price of $64.93, with a trading volume decline of 67% compared to its average.
• Several analysts have upgraded the company's stock, with a consensus rating of "Buy" and a target price of $69.67, indicating positive sentiment in spite of recent stock performance.
• Chefs' Warehouse reported quarterly earnings of $0.52 per share, surpassing expectations, and showed an 8.4% revenue increase year-over-year, highlighting a strong operational performance.

Shares of The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report) dropped 5.7% on Monday . The company traded as low as $61.42 and last traded at $61.22. Approximately 161,253 shares were traded during trading, a decline of 67% from the average daily volume of 484,732 shares. The stock had previously closed at $64.93.

Analyst Ratings Changes

CHEF has been the subject of a number of analyst reports. Wall Street Zen raised Chefs' Warehouse from a "hold" rating to a "buy" rating in a research report on Saturday. Zacks Research raised Chefs' Warehouse from a "hold" rating to a "strong-buy" rating in a research report on Thursday, August 28th. UBS Group raised their price objective on Chefs' Warehouse from $68.00 to $72.00 and gave the company a "buy" rating in a research report on Monday, July 28th. Benchmark raised their price objective on Chefs' Warehouse from $68.00 to $79.00 and gave the company a "buy" rating in a research report on Thursday, July 31st. Finally, Piper Sandler initiated coverage on Chefs' Warehouse in a research report on Wednesday, August 27th. They set a "neutral" rating and a $66.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $69.67.

Chefs' Warehouse Trading Up 2.7%

The stock has a market capitalization of $2.51 billion, a PE ratio of 38.52 and a beta of 1.76. The company has a current ratio of 2.01, a quick ratio of 1.17 and a debt-to-equity ratio of 1.24. The stock has a 50 day moving average price of $64.15 and a 200-day moving average price of $60.55.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last released 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. Chefs' Warehouse had a return on equity of 13.60% and a net margin of 1.76%.The firm had revenue of $1.03 billion for the quarter, compared to the consensus estimate of $1.01 billion. During the same period last year, the business posted $0.40 EPS. The company's revenue for the quarter was up 8.4% on a year-over-year basis. Chefs' Warehouse has set its FY 2025 guidance at EPS. Sell-side analysts expect that The Chefs' Warehouse, Inc. will post 1.73 earnings per share for the current year.

Insider Buying and Selling

In related news, CAO Tim Mccauley sold 17,500 shares of the firm's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $65.07, for a total value of $1,138,725.00. Following the transaction, the chief accounting officer directly owned 52,050 shares of the company's stock, valued at approximately $3,386,893.50. This trade represents a 25.16% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 11.50% of the company's stock.

Institutional Investors Weigh In On Chefs' Warehouse

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Principal Financial Group Inc. increased its holdings in shares of Chefs' Warehouse by 5.0% in the first quarter. Principal Financial Group Inc. now owns 192,764 shares of the company's stock worth $10,498,000 after purchasing an additional 9,142 shares during the last quarter. Harvest Fund Management Co. Ltd increased its holdings in shares of Chefs' Warehouse by 103.1% in the first quarter. Harvest Fund Management Co. Ltd now owns 19,075 shares of the company's stock worth $1,038,000 after purchasing an additional 9,684 shares during the last quarter. Teachers Retirement System of The State of Kentucky increased its holdings in shares of Chefs' Warehouse by 196.0% in the first quarter. Teachers Retirement System of The State of Kentucky now owns 30,816 shares of the company's stock worth $1,678,000 after purchasing an additional 20,404 shares during the last quarter. Teacher Retirement System of Texas purchased a new position in Chefs' Warehouse in the first quarter worth about $289,000. Finally, GAMMA Investing LLC grew its position in Chefs' Warehouse by 27.9% in the first quarter. GAMMA Investing LLC now owns 1,537 shares of the company's stock worth $84,000 after acquiring an additional 335 shares in the last quarter. 91.55% of the stock is owned by 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.