The Cheesecake Factory Incorporated (NASDAQ:CAKE) Stock Rated "Hold" by Sell-Side Brokerages

Key Points

• Analysts rate Cheesecake Factory “Hold” overall: Of 18 analysts, 10 recommend holding, five recommend buying, two recommend selling, and one gives a strong-buy rating. The average 12-month price target is $85.47, below the stock’s quoted $104.49 price.
• Quarterly results exceeded expectations: The company reported adjusted EPS of $1.44 versus the $1.18 consensus estimate, while revenue rose 7.7% year over year to $1.03 billion.
• Insiders have been selling shares: Executives sold 213,749 shares worth approximately $22.3 million over the past three months, while institutional investors own 94.48% of the company.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) has received a consensus rating of "Hold" from the eighteen analysts that are covering the stock, Marketbeat reports. Two investment analysts have rated the stock with a sell rating, ten have given a hold rating, five have assigned a buy rating and one has issued a strong buy rating on the company. The average 1 year price target among brokers that have issued ratings on the stock in the last year is $85.47.

CAKE has been the topic of a number of research analyst reports. Bank of America upped their price target on shares of Cheesecake Factory from $66.00 to $79.00 and gave the stock a "neutral" rating in a report on Thursday, July 2nd. Morgan Stanley upgraded shares of Cheesecake Factory from an "underweight" rating to an "equal weight" rating and lifted their price objective for the company from $50.00 to $80.00 in a report on Wednesday, July 29th. Argus boosted their price objective on shares of Cheesecake Factory from $72.00 to $110.00 and gave the company a "buy" rating in a research report on Thursday, July 30th. Stephens restated a "positive" rating on shares of Cheesecake Factory in a research note on Wednesday, July 29th. Finally, Zacks Research raised shares of Cheesecake Factory from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th.

Insider Activity at Cheesecake Factory

In other Cheesecake Factory news, EVP Scarlett May sold 7,978 shares of Cheesecake Factory stock in a transaction on Friday, July 31st. The stock was sold at an average price of $102.66, for a total transaction of $819,021.48. Following the completion of the sale, the executive vice president directly owned 18,241 shares of the company's stock, valued at $1,872,621.06. The trade was a 30.43% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, President David Gordon sold 31,950 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $110.03, for a total value of $3,515,458.50. Following the completion of the sale, the president owned 26,875 shares of the company's stock, valued at $2,957,056.25. This represents a 54.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 213,749 shares of company stock worth $22,301,899 over the last three months. Corporate insiders own 8.00% of the company's stock.

Institutional Trading of Cheesecake Factory

A number of hedge funds have recently added to or reduced their stakes in the business. Tidal Investments LLC grew its holdings in Cheesecake Factory by 13.9% during the 2nd quarter. Tidal Investments LLC now owns 10,145 shares of the restaurant operator's stock worth $807,000 after acquiring an additional 1,238 shares in the last quarter. Nykredit A S purchased a new position in Cheesecake Factory in the second quarter valued at about $212,000. Corient Private Wealth LP raised its holdings in Cheesecake Factory by 269.9% in the second quarter. Corient Private Wealth LP now owns 100,951 shares of the restaurant operator's stock worth $8,030,000 after purchasing an additional 73,659 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Cheesecake Factory during the second quarter valued at about $239,000. Finally, HB Wealth Management LLC purchased a new stake in shares of Cheesecake Factory during the second quarter valued at about $205,000. 94.48% of the stock is owned by hedge funds and other institutional investors.

Cheesecake Factory Trading Down 0.5%

Shares of NASDAQ CAKE opened at $104.49 on Friday. The company has a debt-to-equity ratio of 1.08, a quick ratio of 0.52 and a current ratio of 0.59. The business's 50 day moving average price is $103.66 and its 200-day moving average price is $78.97. Cheesecake Factory has a fifty-two week low of $43.07 and a fifty-two week high of $118.46. The company has a market cap of $5.20 billion, a price-to-earnings ratio of 28.32, a PEG ratio of 1.72 and a beta of 1.01.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.18 by $0.26. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%.The company had revenue of $1.03 billion during the quarter, compared to analysts' expectations of $999.54 million. During the same quarter in the previous year, the business earned $1.16 EPS. Cheesecake Factory's revenue was up 7.7% compared to the same quarter last year. On average, sell-side analysts expect that Cheesecake Factory will post 4.53 earnings per share for the current year.

Cheesecake Factory Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Investors of record on Tuesday, August 11th were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, August 11th. This represents a $1.20 annualized dividend and a yield of 1.1%. Cheesecake Factory's dividend payout ratio is 32.52%.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated NASDAQ: CAKE operates full-service casual dining restaurants in the United States. Its flagship Cheesecake Factory restaurants offer an extensive menu of made-to-order dishes spanning American and international cuisines, along with a broad selection of cheesecakes and other desserts.

The company also operates North Italia, an Italian restaurant concept, and restaurants developed through Fox Restaurant Concepts. In addition, its bakery division produces cheesecakes and other baked goods for the company's restaurants, retailers, and other foodservice customers.

Founded in 1978 by David Overton, The Cheesecake Factory began as a bakery business before opening its first restaurant in Beverly Hills, California, in 1978.

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