Intech Investment Management LLC Buys 33,936 Shares of The Cheesecake Factory Incorporated $CAKE

Key Points

• Intech Investment Management LLC increased its Cheesecake Factory stake by 127.7% in the fourth quarter, buying 33,936 additional shares to bring its total holdings to 60,513 shares worth about $3.06 million.
• Cheesecake Factory reported better-than-expected quarterly results, posting EPS of $1.05 versus the $1.03 estimate and revenue of $978.83 million, up 5.6% year over year.
• The company continued returning cash to shareholders with a quarterly dividend of $0.30 per share, equal to an annualized yield of 1.9%; meanwhile, analysts now have a consensus “Hold” rating with an average price target of $64.94.

Intech Investment Management LLC boosted its stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) by 127.7% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 60,513 shares of the restaurant operator's stock after purchasing an additional 33,936 shares during the quarter. Intech Investment Management LLC owned approximately 0.12% of Cheesecake Factory worth $3,055,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also added to or reduced their stakes in the stock. Invesco Ltd. boosted its stake in 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 purchasing an additional 407,223 shares during the period. American Century Companies Inc. boosted its stake in Cheesecake Factory by 5.6% in the 3rd quarter. American Century Companies Inc. now owns 1,800,388 shares of the restaurant operator's stock worth $98,373,000 after purchasing an additional 96,074 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Cheesecake Factory by 2.4% during the 3rd quarter. Dimensional Fund Advisors LP now owns 1,207,196 shares of the restaurant operator's stock valued at $65,965,000 after acquiring an additional 28,361 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Cheesecake Factory by 0.4% during the 4th quarter. Geode Capital Management LLC now owns 1,152,174 shares of the restaurant operator's stock valued at $58,170,000 after acquiring an additional 4,577 shares during the last quarter. Finally, Voloridge Investment Management LLC boosted its position in shares of Cheesecake Factory by 54.0% during the 3rd quarter. Voloridge Investment Management LLC now owns 747,046 shares of the restaurant operator's stock valued at $40,819,000 after acquiring an additional 262,081 shares during the last quarter. Institutional investors own 94.48% of the company's stock.

Cheesecake Factory Price Performance

CAKE opened at $64.49 on Wednesday. The company has a debt-to-equity ratio of 1.22, a quick ratio of 0.53 and a current ratio of 0.59. The Cheesecake Factory Incorporated has a 52-week low of $43.07 and a 52-week high of $69.70. The stock has a market capitalization of $3.20 billion, a PE ratio of 18.86, a price-to-earnings-growth ratio of 1.58 and a beta of 1.04. The stock's 50 day moving average price is $59.86 and its 200-day moving average price is $56.97.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last posted its earnings results on Wednesday, April 29th. The restaurant operator reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.03 by $0.02. Cheesecake Factory had a return on equity of 43.74% and a net margin of 4.34%.The firm had revenue of $978.83 million for the quarter, compared to analysts' expectations of $964.57 million. During the same period in the previous year, the firm earned $0.93 earnings per share. The business's revenue was up 5.6% compared to the same quarter last year. On average, equities research analysts predict that The Cheesecake Factory Incorporated will post 4.01 EPS for the current year.

Cheesecake Factory Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, May 26th. Stockholders of record on Wednesday, May 13th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Wednesday, May 13th. This represents a $1.20 annualized dividend and a dividend yield of 1.9%. Cheesecake Factory's payout ratio is 35.09%.

Insider Activity at Cheesecake Factory

In other news, Chairman David Overton sold 104,000 shares of the business's stock in a transaction that occurred on Friday, May 1st. The stock was sold at an average price of $61.02, for a total transaction of $6,346,080.00. Following the transaction, the chairman directly owned 3,079,779 shares of the company's stock, valued at approximately $187,928,114.58. The trade was a 3.27% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Scarlett May sold 5,206 shares of the business's stock in a transaction that occurred on Tuesday, March 10th. The shares were sold at an average price of $62.95, for a total value of $327,717.70. Following the transaction, the executive vice president directly owned 25,715 shares in the company, valued at $1,618,759.25. This trade represents a 16.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 8.00% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on CAKE. JPMorgan Chase & Co. upgraded Cheesecake Factory from an "underweight" rating to a "neutral" rating and lifted their price target for the company from $58.00 to $68.00 in a research report on Thursday, May 14th. Stephens lifted their price target on Cheesecake Factory from $61.00 to $65.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Wells Fargo & Company lifted their price target on Cheesecake Factory from $60.00 to $65.00 and gave the company an "equal weight" rating in a research report on Thursday, April 30th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Cheesecake Factory in a research report on Friday, May 22nd. Finally, Argus set a $72.00 price target on Cheesecake Factory in a research report on Friday, May 1st. Six investment analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and three have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $64.94.

Cheesecake Factory Profile

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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