The Cheesecake Factory Incorporated $CAKE Shares Bought by Wellington Management Group LLP

Key Points

• Wellington Management Group LLP has increased its stake in The Cheesecake Factory by 156.7%, owning over 3 million shares, valued at approximately $148 million.
• The Cheesecake Factory recently reported earnings of $1.16 per share, exceeding estimates, with a revenue of $955.83 million for the quarter, marking a 5.7% year-over-year increase.
• Institutional investors now hold 94.48% of The Cheesecake Factory's stock, indicating strong institutional interest in the company's performance.

Wellington Management Group LLP raised its position in The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) by 156.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,045,705 shares of the restaurant operator's stock after purchasing an additional 1,859,194 shares during the period. Wellington Management Group LLP owned 6.15% of Cheesecake Factory worth $148,204,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also recently bought and sold shares of CAKE. Westwood Holdings Group Inc. purchased a new position in Cheesecake Factory in the first quarter valued at $75,795,000. Invesco Ltd. increased its holdings in Cheesecake Factory by 83.5% in the first quarter. Invesco Ltd. now owns 2,591,205 shares of the restaurant operator's stock valued at $126,088,000 after buying an additional 1,178,722 shares during the last quarter. Victory Capital Management Inc. increased its holdings in Cheesecake Factory by 64.1% in the first quarter. Victory Capital Management Inc. now owns 1,766,131 shares of the restaurant operator's stock valued at $85,940,000 after buying an additional 689,784 shares during the last quarter. Junto Capital Management LP acquired a new position in Cheesecake Factory in the fourth quarter valued at $21,827,000. Finally, JCP Investment Management LLC boosted its stake in Cheesecake Factory by 181.3% in the fourth quarter. JCP Investment Management LLC now owns 667,210 shares of the restaurant operator's stock valued at $31,652,000 after acquiring an additional 430,000 shares in the last quarter. Hedge funds and other institutional investors own 94.48% of the company's stock.

Insider Activity

In related news, insider Keith Carango sold 50,500 shares of Cheesecake Factory stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $55.12, for a total transaction of $2,783,560.00. Following the completion of the transaction, the insider directly owned 20,774 shares in the company, valued at $1,145,062.88. The trade was a 70.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, President David M. Gordon sold 43,335 shares of Cheesecake Factory stock in a transaction that occurred on Thursday, August 14th. The stock was sold at an average price of $63.06, for a total value of $2,732,705.10. Following the transaction, the president owned 24,532 shares of the company's stock, valued at $1,546,987.92. This represents a 63.85% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 188,723 shares of company stock worth $11,005,819. 8.10% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of analysts recently weighed in on the stock. Morgan Stanley increased their price target on shares of Cheesecake Factory from $45.00 to $47.00 and gave the stock an "underweight" rating in a research note on Thursday, July 31st. Oppenheimer increased their target price on shares of Cheesecake Factory from $65.00 to $75.00 and gave the stock an "outperform" rating in a research note on Friday, July 11th. Piper Sandler increased their target price on shares of Cheesecake Factory from $54.00 to $62.00 and gave the stock a "neutral" rating in a research note on Monday, August 4th. The Goldman Sachs Group reiterated a "neutral" rating and set a $67.00 target price (up previously from $66.00) on shares of Cheesecake Factory in a research note on Thursday, July 10th. Finally, 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 note on Wednesday, July 30th. Seven 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. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $61.94.

Cheesecake Factory Price Performance

Shares of CAKE traded down $1.14 during trading hours on Monday, reaching $61.57. The company had a trading volume of 616,971 shares, compared to its average volume of 1,455,438. The firm has a 50 day simple moving average of $62.83 and a 200-day simple moving average of $55.32. The Cheesecake Factory Incorporated has a 12-month low of $35.40 and a 12-month high of $69.70. 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 company has a market capitalization of $3.07 billion, a price-to-earnings ratio of 18.94, a PEG ratio of 1.49 and a beta of 1.17.

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

Cheesecake Factory Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 26th. Investors of record on Tuesday, August 12th will be given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 1.8%. The ex-dividend date is Tuesday, August 12th. Cheesecake Factory's payout ratio is currently 33.23%.

About Cheesecake Factory

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.