Man Group plc Makes New Investment in The Cheesecake Factory Incorporated $CAKE

Key Points

• Man Group initiated a position in Cheesecake Factory during the second quarter, purchasing 23,436 shares valued at approximately $1.86 million. Institutional investors collectively own 94.48% of CAKE.
• Cheesecake Factory reported stronger-than-expected quarterly results, with earnings of $1.44 per share versus the $1.18 consensus estimate and revenue of $1.03 billion, up 7.7% year over year.
• Despite the earnings beat and a $0.30 quarterly dividend, insider selling has been substantial, with executives selling 213,749 shares worth about $22.3 million over the past three months. Analysts maintain a consensus “Hold” rating with an $83.47 price target, below the stock’s reported $108.36 opening price.

Man Group plc bought a new position in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 23,436 shares of the restaurant operator's stock, valued at approximately $1,864,000.

Other hedge funds also recently added to or reduced their stakes in the company. Oppenheimer Asset Management Inc. purchased a new position in shares of Cheesecake Factory during the second quarter valued at approximately $2,606,000. Fisher Asset Management LLC grew its stake in shares of Cheesecake Factory by 7.2% during the fourth quarter. Fisher Asset Management LLC now owns 503,184 shares of the restaurant operator's stock valued at $25,401,000 after buying an additional 33,959 shares during the last quarter. Louisiana State Employees Retirement System purchased a new stake in shares of Cheesecake Factory in the first quarter worth approximately $1,111,000. Lotus Technology Management LP purchased a new stake in shares of Cheesecake Factory in the second quarter worth approximately $1,870,000. Finally, Deutsche Bank AG purchased a new stake in shares of Cheesecake Factory in the second quarter worth approximately $3,922,000. 94.48% of the stock is currently owned by institutional investors.

Insider Transactions at Cheesecake Factory

In related news, EVP Scarlett May sold 7,978 shares of the business's stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $102.66, for a total value of $819,021.48. Following the completion of the transaction, the executive vice president owned 18,241 shares of the company's stock, valued at $1,872,621.06. The trade was a 30.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, President David M. Gordon sold 31,950 shares of the company's stock in a transaction on 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 sale, the president owned 26,875 shares of the company's stock, valued at approximately $2,957,056.25. This represents a 54.31% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 213,749 shares of company stock worth $22,301,899. Insiders own 8.00% of the company's stock.

Cheesecake Factory Price Performance

Shares of CAKE stock opened at $108.36 on Wednesday. The Cheesecake Factory Incorporated has a twelve month low of $43.07 and a twelve month high of $118.46. The company has a current ratio of 0.59, a quick ratio of 0.52 and a debt-to-equity ratio of 1.08. The stock has a fifty day simple moving average of $95.37 and a two-hundred day simple moving average of $73.99. The stock has a market capitalization of $5.39 billion, a price-to-earnings ratio of 29.37, a P/E/G ratio of 1.85 and a beta of 1.01.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced 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 firm had revenue of $1.03 billion for the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%.The business's revenue for the quarter was up 7.7% on a year-over-year basis. During the same quarter last year, the firm posted $1.16 earnings per share. On average, analysts predict that The Cheesecake Factory Incorporated will post 4.52 EPS for the current fiscal year.

Cheesecake Factory Announces Dividend

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

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on CAKE shares. Jefferies Financial Group cut Cheesecake Factory from a "buy" rating to a "hold" rating and boosted their price objective for the company from $75.00 to $88.00 in a report on Wednesday, July 29th. Wells Fargo & Company increased their target price on Cheesecake Factory from $65.00 to $75.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. lifted their target price on Cheesecake Factory from $92.00 to $105.00 and gave the stock a "neutral" rating in a research report on Wednesday, August 26th. Zacks Research raised shares of Cheesecake Factory from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 30th. Finally, Robert W. Baird upgraded shares of Cheesecake Factory to a "hold" rating in a report on Monday, August 24th. One research 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. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $83.47.

Cheesecake Factory Company 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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