The Cheesecake Factory Incorporated $CAKE Shares Newly Acquired by TD Waterhouse Canada Inc.

Key Points

• TD Waterhouse Canada Inc. acquired 127,704 Cheesecake Factory shares during the third quarter, worth approximately $13.8 million. Institutional investors collectively own 94.48% of CAKE.
• Analysts maintain a generally cautious outlook, with a consensus rating of “Hold” and an average price target of $90.33, despite several analysts raising their targets.
• Cheesecake Factory exceeded quarterly expectations, reporting $1.44 EPS and $1.03 billion in revenue, while paying a $0.30 quarterly dividend. Company insiders sold roughly $22.3 million of stock during the quarter.

TD Waterhouse Canada Inc. purchased a new position in shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE - Free Report) during the third quarter, according to its most recent disclosure with the SEC. The institutional investor purchased 127,704 shares of the restaurant operator's stock, valued at approximately $13,792,000. TD Waterhouse Canada Inc. owned 0.26% of Cheesecake Factory as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also added to or reduced their stakes in the company. Allworth Financial LP acquired a new position in shares of Cheesecake Factory during the second quarter worth approximately $36,000. NFSG Corp grew its position in Cheesecake Factory by 115.8% in the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator's stock valued at $37,000 after purchasing an additional 366 shares during the period. Global Retirement Partners LLC acquired a new stake in Cheesecake Factory in the 2nd quarter valued at $57,000. Ascentis Independent Advisors acquired a new stake in Cheesecake Factory in the 1st quarter valued at $65,000. Finally, State of Wyoming bought a new stake in Cheesecake Factory during the 2nd quarter valued at $95,000. Institutional investors own 94.48% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Bank of America lifted their price objective on shares of Cheesecake Factory from $66.00 to $79.00 and gave the company a "neutral" rating in a report on Thursday, July 2nd. Robert W. Baird upgraded shares of Cheesecake Factory to a "hold" rating in a report on Monday, August 24th. Weiss Ratings upgraded shares of Cheesecake Factory from a "buy (b)" rating to a "buy (b+)" rating in a report on Thursday, October 8th. Morgan Stanley raised their price target on shares of Cheesecake Factory from $80.00 to $87.00 and gave the company an "equal weight" rating in a research report on Thursday. Finally, Mizuho lifted their price target on Cheesecake Factory from $85.00 to $93.00 and gave the company a "neutral" rating in a research note on Wednesday, July 29th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, Cheesecake Factory currently has a consensus rating of "Hold" and an average price target of $90.33.

Cheesecake Factory Price Performance

CAKE opened at $114.92 on Monday. The Cheesecake Factory Incorporated has a fifty-two week low of $43.07 and a fifty-two week high of $118.63. The firm has a market capitalization of $5.72 billion, a P/E ratio of 31.14, a PEG ratio of 1.85 and a beta of 1.04. The company's 50-day moving average is $107.71 and its 200 day moving average is $84.59. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued its quarterly earnings data on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to the consensus estimate of $999.54 million. Cheesecake Factory had a net margin of 4.61% and a return on equity of 43.97%. The firm's quarterly revenue was up 7.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.16 EPS. Research analysts expect that The Cheesecake Factory Incorporated will post 4.61 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Stockholders of record on Tuesday, August 11th were paid a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date was Tuesday, August 11th. Cheesecake Factory's payout ratio is presently 32.52%.

Insider Buying and Selling

In related news, President David M. Gordon sold 31,950 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $110.03, for a total transaction of $3,515,458.50. Following the completion of the sale, the president directly owned 26,875 shares of the company's stock, valued at approximately $2,957,056.25. This trade represents a 54.31% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Matthew Clark sold 68,900 shares of Cheesecake Factory stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $99.30, for a total value of $6,841,770.00. Following the sale, the chief financial officer owned 45,109 shares in the company, valued at $4,479,323.70. This trade represents a 60.43% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 213,749 shares of company stock valued at $22,301,899 over the last quarter. Corporate insiders own 8.00% of the company's stock.

About Cheesecake Factory

Cheesecake Factory Incorporated NASDAQ: CAKE operates full-service restaurants known for extensive menus, generous portions and a broad selection of cheesecakes and other desserts. Its flagship brand, The Cheesecake Factory, serves American cuisine influenced by international flavors, including appetizers, salads, pastas, seafood, steaks, burgers and specialty beverages.

The company also operates restaurants under the North Italia brand, which specializes in modern Italian cuisine, and owns Fox Restaurant Concepts, a collection of restaurant brands with varied culinary themes.

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