477,999 Shares in The Cheesecake Factory Incorporated $CAKE Bought by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon purchased 477,999 Cheesecake Factory shares worth approximately $38 million, acquiring a 0.96% stake. Institutional investors collectively own 94.48% of the company.
• Analysts maintain a consensus “Hold” rating with an average price target of $83.47, despite recent target increases and a stock price of $112.07.
• Cheesecake Factory exceeded quarterly expectations, reporting $1.44 in earnings per share on $1.03 billion in revenue, while insiders sold $22.46 million of stock over the past 90 days. The company also paid a quarterly dividend of $0.30 per share.

Bank of New York Mellon Corp purchased a new stake in shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 477,999 shares of the restaurant operator's stock, valued at approximately $38,020,000. Bank of New York Mellon Corp owned approximately 0.96% of Cheesecake Factory as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Global Retirement Partners LLC raised its position in Cheesecake Factory by 661.7% during the fourth quarter. Global Retirement Partners LLC now owns 716 shares of the restaurant operator's stock valued at $36,000 after purchasing an additional 622 shares during the period. NFSG Corp raised its holdings in Cheesecake Factory by 115.8% during the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after buying an additional 366 shares during the period. Root Financial Partners LLC lifted its position in Cheesecake Factory by 973.2% in the fourth quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator's stock worth $44,000 after buying an additional 798 shares during the last quarter. Arax Advisory Partners bought a new stake in Cheesecake Factory in the fourth quarter worth $50,000. Finally, Quarry LP boosted its stake in Cheesecake Factory by 3,343.8% during the third quarter. Quarry LP now owns 1,102 shares of the restaurant operator's stock worth $60,000 after buying an additional 1,070 shares during the period. 94.48% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on CAKE. Citigroup raised their price target on Cheesecake Factory from $76.00 to $90.00 and gave the stock a "buy" rating in a research note on Friday, July 10th. Jefferies Financial Group lowered Cheesecake Factory from a "buy" rating to a "hold" rating and boosted their price target for the company from $75.00 to $88.00 in a report on Wednesday, July 29th. Robert W. Baird raised Cheesecake Factory to a "hold" rating in a research note on Monday, August 24th. Morgan Stanley raised Cheesecake Factory from an "underweight" rating to an "equal weight" rating and lifted their target price for the company from $50.00 to $80.00 in a research report on Wednesday, July 29th. Finally, Wells Fargo & Company upped their target price on Cheesecake Factory from $65.00 to $75.00 and gave the stock an "equal weight" rating in a report on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Cheesecake Factory currently has an average rating of "Hold" and an average target price of $83.47.

Insider Transactions at Cheesecake Factory

In other Cheesecake Factory news, CFO Matthew Eliot Clark sold 68,900 shares of the firm's stock in a transaction that occurred on Thursday, July 30th. The stock was sold at an average price of $99.30, for a total value of $6,841,770.00. Following the sale, the chief financial officer directly owned 45,109 shares of the company's stock, valued at approximately $4,479,323.70. This trade represents a 60.43% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Scarlett May sold 7,978 shares of the business's stock in a transaction dated Friday, July 31st. The stock was sold at an average price of $102.66, for a total transaction of $819,021.48. Following the sale, the executive vice president directly owned 18,241 shares of the company's stock, valued at $1,872,621.06. This represents a 30.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 216,239 shares of company stock worth $22,463,500. Insiders own 8.00% of the company's stock.

Cheesecake Factory Trading Up 1.8%

Shares of Cheesecake Factory stock opened at $112.07 on Friday. The stock has a market cap of $5.58 billion, a PE ratio of 30.37, a price-to-earnings-growth ratio of 1.95 and a beta of 1.00. The firm has a fifty day moving average price of $94.09 and a 200 day moving average price of $73.25. The Cheesecake Factory Incorporated has a 1 year low of $43.07 and a 1 year high of $118.46. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its quarterly earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating the consensus estimate of $1.18 by $0.26. The company had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. The firm's revenue was up 7.7% on a year-over-year basis. During the same period in the prior year, the company earned $1.16 earnings per share. Equities research analysts predict that The Cheesecake Factory Incorporated will post 4.52 earnings per share for the current year.

Cheesecake Factory Announces Dividend

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

About Cheesecake Factory

The Cheesecake Factory Incorporated NASDAQ: CAKE is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.

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