Lotus Technology Management LP Acquires Shares of 23,515 The Cheesecake Factory Incorporated $CAKE

Key Points

• Lotus Technology Management LP acquired 23,515 Cheesecake Factory shares worth approximately $1.87 million in the second quarter, making CAKE its 10th-largest holding. Institutional investors collectively own 94.48% of the company.
• Cheesecake Factory reported quarterly revenue of $1.03 billion and earnings of $1.44 per share, surpassing analyst expectations, while revenue increased 7.7% year over year.
• The company maintains a quarterly dividend of $0.30 per share, but its stock has an average analyst rating of “Hold” with an $81 price target; insiders sold more than 216,000 shares worth about $22.5 million during the quarter.

Lotus Technology Management LP acquired a new stake in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 23,515 shares of the restaurant operator's stock, valued at approximately $1,870,000. Cheesecake Factory comprises about 2.3% of Lotus Technology Management LP's portfolio, making the stock its 10th largest position.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Jupiter Topco LLC acquired a new position in Cheesecake Factory during the second quarter valued at $1,636,000. PDT Partners LLC acquired a new stake in Cheesecake Factory during the 2nd quarter worth about $13,743,000. Palisade Capital Management LP acquired a new stake in Cheesecake Factory during the 2nd quarter worth about $10,014,000. Canada Pension Plan Investment Board purchased a new position in shares of Cheesecake Factory during the 2nd quarter valued at about $294,000. Finally, Manatuck Hill Partners LLC acquired a new position in shares of Cheesecake Factory in the 2nd quarter valued at about $795,000. Institutional investors and hedge funds own 94.48% of the company's stock.

Cheesecake Factory Stock Down 1.0%

Shares of CAKE opened at $113.49 on Wednesday. The firm has a market cap of $5.65 billion, a P/E ratio of 30.76, a PEG ratio of 2.05 and a beta of 1.00. The Cheesecake Factory Incorporated has a 12 month low of $43.07 and a 12 month high of $118.46. The stock's 50 day moving average is $91.94 and its two-hundred day moving average is $72.28. The company has a current ratio of 0.59, a quick ratio of 0.52 and a debt-to-equity ratio of 1.08.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced its earnings results 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 firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. During the same quarter last year, the firm posted $1.16 EPS. The business's revenue was up 7.7% on a year-over-year basis. Analysts predict 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 disclosed a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were issued a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 1.1%. The ex-dividend date of this dividend was Tuesday, August 11th. Cheesecake Factory's dividend payout ratio (DPR) is presently 32.52%.

Wall Street Analysts Forecast Growth

Several analysts recently commented on the company. Argus raised their target price on Cheesecake Factory from $72.00 to $110.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Wells Fargo & Company upped their price objective on Cheesecake Factory from $65.00 to $75.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 16th. UBS Group raised their price objective on shares of Cheesecake Factory from $53.00 to $60.00 and gave the stock a "sell" rating in a research note on Thursday, July 23rd. Northcoast Research lowered shares of Cheesecake Factory from a "buy" rating to a "neutral" rating in a report on Monday, June 15th. Finally, JPMorgan Chase & Co. upgraded shares of Cheesecake Factory from an "underweight" rating to a "neutral" rating and boosted their target price for the company from $58.00 to $68.00 in a research note on Thursday, May 14th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Cheesecake Factory presently has an average rating of "Hold" and an average price target of $81.00.

Insiders Place Their Bets

In related news, Chairman David Overton sold 94,145 shares of the firm's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $106.27, for a total value of $10,004,789.15. Following the transaction, the chairman directly owned 89,805 shares of the company's stock, valued at approximately $9,543,577.35. This trade represents a 51.18% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, President David M. Gordon sold 31,950 shares of Cheesecake Factory stock in a transaction dated 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 in the company, valued at approximately $2,957,056.25. The trade was a 54.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 216,239 shares of company stock valued at $22,463,500. 8.00% of the stock is owned by company insiders.

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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