Hennessy Advisors Inc. Has $68.39 Million Position in The Cheesecake Factory Incorporated $CAKE

Key Points

• Hennessy Advisors Inc. holds a $68.39 million position in The Cheesecake Factory, having reduced its shareholding by 9.9% in the second quarter, now owning approximately 1,091,400 shares.
• The Cheesecake Factory reported earnings per share of $1.16 for the last quarter, surpassing analysts' expectations of $1.06, with revenues of $955.83 million, a 5.7% increase compared to the previous year.
• The company recently announced a quarterly dividend of $0.27 per share, yielding 1.9%, with an annualized payout ratio of 33.23%.

Hennessy Advisors Inc. trimmed its holdings in shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) by 9.9% in the second quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,091,400 shares of the restaurant operator's stock after selling 120,500 shares during the period. Cheesecake Factory comprises approximately 2.3% of Hennessy Advisors Inc.'s investment portfolio, making the stock its 3rd biggest position. Hennessy Advisors Inc. owned approximately 2.20% of Cheesecake Factory worth $68,387,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in CAKE. Wellington Management Group LLP lifted its position in shares of Cheesecake Factory by 156.7% in the 1st quarter. Wellington Management Group LLP now owns 3,045,705 shares of the restaurant operator's stock valued at $148,204,000 after acquiring an additional 1,859,194 shares in the last quarter. Westwood Holdings Group Inc. purchased a new stake in shares of Cheesecake Factory in the 1st quarter valued at approximately $75,795,000. Invesco Ltd. lifted its position in shares of Cheesecake Factory by 83.5% in the 1st quarter. Invesco Ltd. now owns 2,591,205 shares of the restaurant operator's stock valued at $126,088,000 after acquiring an additional 1,178,722 shares in the last quarter. Driehaus Capital Management LLC purchased a new stake in shares of Cheesecake Factory in the 1st quarter valued at approximately $47,720,000. Finally, Victory Capital Management Inc. lifted its position in shares of Cheesecake Factory by 64.1% in the 1st quarter. Victory Capital Management Inc. now owns 1,766,131 shares of the restaurant operator's stock valued at $85,940,000 after acquiring an additional 689,784 shares in the last quarter. 94.48% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In related news, President David M. Gordon sold 43,335 shares of the firm's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $63.06, for a total value of $2,732,705.10. Following the transaction, the president directly owned 24,532 shares in the company, valued at approximately $1,546,987.92. This trade represents a 63.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Alexander L. Cappello sold 12,388 shares of the firm's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $65.88, for a total transaction of $816,121.44. Following the completion of the transaction, the director owned 6,806 shares in the company, valued at $448,379.28. The trade was a 64.54% decrease in their ownership of the stock. The disclosure for this sale can be found here. Company insiders own 8.40% of the company's stock.

Cheesecake Factory Stock Up 0.6%

Cheesecake Factory stock opened at $55.50 on Friday. The company has a market capitalization of $2.76 billion, a P/E ratio of 17.08, a P/E/G ratio of 1.31 and a beta of 1.06. The firm's fifty day simple moving average is $59.75 and its 200-day simple moving average is $56.59. The company has a current ratio of 0.51, a quick ratio of 0.42 and a debt-to-equity ratio of 1.40. The Cheesecake Factory Incorporated has a 1-year low of $38.40 and a 1-year high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The restaurant operator reported $1.16 earnings per share for the quarter, beating analysts' consensus estimates of $1.06 by $0.10. The business had revenue of $955.83 million for the quarter, compared to the consensus estimate of $945.82 million. Cheesecake Factory had a net margin of 4.33% and a return on equity of 45.92%. Cheesecake Factory's revenue for the quarter was up 5.7% on a year-over-year basis. During the same quarter last year, the firm earned $1.09 EPS. Sell-side analysts forecast that The Cheesecake Factory Incorporated will post 3.71 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th were paid a $0.27 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $1.08 dividend on an annualized basis and a yield of 1.9%. Cheesecake Factory's dividend payout ratio (DPR) is presently 33.23%.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on CAKE. Oppenheimer upped their price target on shares of Cheesecake Factory from $65.00 to $75.00 and gave the company an "outperform" rating in a research report on Friday, July 11th. Piper Sandler upped their price target on shares of Cheesecake Factory from $54.00 to $62.00 and gave the company a "neutral" rating in a research report on Monday, August 4th. Barclays increased their target price on shares of Cheesecake Factory from $57.00 to $62.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 30th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $67.00 target price (up previously from $66.00) on shares of Cheesecake Factory in a research report on Thursday, July 10th. Finally, Weiss Ratings reiterated a "buy (b)" rating on shares of Cheesecake Factory in a research report on Saturday, September 27th. Eight investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and four have assigned a Sell rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $61.94.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated operates and licenses restaurants in the United States and Canada. The company operates bakeries that produce cheesecakes and other baked products for its restaurants, international licensees, third-party bakery customers, external foodservice operators, retailers, and distributors.

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