Deutsche Bank AG Makes New $3.92 Million Investment in The Cheesecake Factory Incorporated $CAKE

Key Points

• Deutsche Bank initiated a $3.92 million position in Cheesecake Factory, purchasing 49,304 shares and owning approximately 0.10% of the company. Institutional investors collectively hold 94.48% of CAKE’s outstanding shares.
• Cheesecake Factory reported quarterly EPS of $1.44, beating estimates of $1.18, while revenue rose 7.7% year over year to $1.03 billion. The company also maintains a quarterly dividend of $0.30, or $1.20 annually.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $81, despite several recent target increases. Meanwhile, company insiders sold more than 216,000 shares worth approximately $22.5 million over the past three months.

Deutsche Bank AG bought 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 and Exchange Commission. The fund bought 49,304 shares of the restaurant operator's stock, valued at approximately $3,922,000. Deutsche Bank AG owned approximately 0.10% of Cheesecake Factory at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently modified their holdings of CAKE. Woodline Partners LP grew its stake in Cheesecake Factory by 1,059.3% in the third quarter. Woodline Partners LP now owns 618,056 shares of the restaurant operator's stock worth $33,771,000 after purchasing an additional 564,744 shares during the period. Bank of New York Mellon Corp purchased a new stake in shares of Cheesecake Factory in the 2nd quarter worth about $38,020,000. Invesco Ltd. increased its stake in shares of Cheesecake Factory by 24.7% in the 3rd quarter. Invesco Ltd. now owns 2,057,118 shares of the restaurant operator's stock worth $112,401,000 after acquiring an additional 407,223 shares in the last quarter. Millennium Management LLC increased its stake in shares of Cheesecake Factory by 214.3% in the 4th quarter. Millennium Management LLC now owns 512,085 shares of the restaurant operator's stock worth $25,850,000 after acquiring an additional 349,168 shares in the last quarter. Finally, Engineers Gate Manager LP lifted its position in Cheesecake Factory by 1,583.7% during the 4th quarter. Engineers Gate Manager LP now owns 287,219 shares of the restaurant operator's stock valued at $14,499,000 after acquiring an additional 270,160 shares during the period. Hedge funds and other institutional investors own 94.48% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on CAKE shares. JPMorgan Chase & Co. raised shares of Cheesecake Factory from an "underweight" rating to a "neutral" rating and boosted their price objective for the stock from $58.00 to $68.00 in a research note on Thursday, May 14th. Stephens reissued a "positive" rating on shares of Cheesecake Factory in a research report on Wednesday, July 29th. Argus upped their price target on Cheesecake Factory from $72.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Morgan Stanley raised Cheesecake Factory from an "underweight" rating to an "equal weight" rating and raised their price objective for the company from $50.00 to $80.00 in a research report on Wednesday, July 29th. Finally, Wells Fargo & Company lifted their price objective on Cheesecake Factory from $65.00 to $75.00 and gave the company an "equal weight" rating in a research note on Thursday, July 16th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, Cheesecake Factory presently has an average rating of "Hold" and a consensus target price of $81.00.

Cheesecake Factory Stock Down 1.0%

CAKE stock opened at $113.49 on Wednesday. The Cheesecake Factory Incorporated has a 1-year low of $43.07 and a 1-year high of $118.46. The business has a fifty day moving average price of $91.94 and a 200-day moving average price of $72.28. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52. The stock has a market capitalization of $5.65 billion, a P/E ratio of 30.76, a P/E/G ratio of 2.05 and a beta of 1.00.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $999.54 million. During the same period last year, the firm posted $1.16 earnings per share. Cheesecake Factory's revenue was up 7.7% compared to the same quarter last year. Equities analysts forecast that The Cheesecake Factory Incorporated will post 4.47 earnings per share for the current fiscal year.

Cheesecake Factory Announces Dividend

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

Insider Activity

In other news, CFO Matthew Eliot Clark sold 68,900 shares of the business's stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $99.30, for a total transaction of $6,841,770.00. Following the completion of the transaction, the chief financial officer directly owned 45,109 shares of the company's stock, valued at $4,479,323.70. The trade was a 60.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, President David M. Gordon sold 31,950 shares of Cheesecake Factory stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $110.03, for a total transaction of $3,515,458.50. Following the completion of the sale, the president directly owned 26,875 shares of the company's stock, valued at approximately $2,957,056.25. This trade represents a 54.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 216,239 shares of company stock valued at $22,463,500 over the last three months. Corporate insiders own 8.00% of the company's stock.

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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