Chefs' Warehouse (NASDAQ:CHEF) Sets New 52-Week High - Should You Buy?

Key Points

• Chefs’ Warehouse shares reached a new 52-week high, trading as high as $117.65 and last changing hands at $116.17. The stock has risen well above its 50-day and 200-day moving averages of $103.16 and $82.57, respectively.
• Analyst sentiment is broadly positive: the stock has an average rating of “Buy”, with a consensus price target of $114.33, while several firms recently raised their targets to $125.
• The company exceeded quarterly expectations, reporting EPS of $0.78 versus the $0.59 consensus and revenue of $1.17 billion, up 12.9% year over year. However, insiders sold about 137,752 shares worth $15.2 million over the past 90 days.

Shares of The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $117.65 and last traded at $116.17, with a volume of 687325 shares trading hands. The stock had previously closed at $112.47.

Analyst Ratings Changes

A number of equities analysts have recently weighed in on the company. UBS Group boosted their price target on Chefs' Warehouse from $114.00 to $125.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Zacks Research raised shares of Chefs' Warehouse from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, August 11th. BTIG Research lifted their price target on shares of Chefs' Warehouse from $100.00 to $125.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Benchmark upped their price objective on shares of Chefs' Warehouse from $106.00 to $125.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Finally, Wall Street Zen raised shares of Chefs' Warehouse from a "hold" rating to a "buy" rating in a research note on Saturday, July 18th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and an average target price of $114.33.

Chefs' Warehouse Stock Performance

The company has a market cap of $4.71 billion, a price-to-earnings ratio of 55.01 and a beta of 1.38. The company has a current ratio of 2.15, a quick ratio of 1.31 and a debt-to-equity ratio of 1.07. The stock's 50 day moving average price is $103.16 and its 200 day moving average price is $82.57.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last released its earnings results on Wednesday, July 29th. The company reported $0.78 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.59 by $0.19. The firm had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.12 billion. Chefs' Warehouse had a net margin of 2.09% and a return on equity of 16.95%. Chefs' Warehouse's revenue was up 12.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.52 earnings per share. On average, analysts expect that The Chefs' Warehouse, Inc. will post 2.54 EPS for the current fiscal year.

Insider Activity at Chefs' Warehouse

In other news, General Counsel Alexandros Aldous sold 35,000 shares of the business's stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $110.97, for a total transaction of $3,883,950.00. Following the completion of the sale, the general counsel owned 34,442 shares in the company, valued at approximately $3,822,028.74. The trade was a 50.40% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Christopher Pappas sold 100,000 shares of the firm's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $110.11, for a total transaction of $11,011,000.00. Following the completion of the transaction, the chief executive officer owned 2,105,480 shares in the company, valued at $231,834,402.80. The trade was a 4.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 137,752 shares of company stock worth $15,203,174. 11.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Chefs' Warehouse

Hedge funds have recently made changes to their positions in the business. Hantz Financial Services Inc. increased its holdings in Chefs' Warehouse by 229.5% in the 4th quarter. Hantz Financial Services Inc. now owns 458 shares of the company's stock valued at $29,000 after purchasing an additional 319 shares in the last quarter. Caitong International Asset Management Co. Ltd raised its holdings in shares of Chefs' Warehouse by 515.3% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 523 shares of the company's stock valued at $31,000 after buying an additional 438 shares during the period. Global Retirement Partners LLC acquired a new position in Chefs' Warehouse during the 4th quarter worth approximately $31,000. Public Employees Retirement System of Ohio purchased a new position in Chefs' Warehouse in the 2nd quarter worth approximately $34,000. Finally, Osaic Holdings Inc. grew its position in Chefs' Warehouse by 30.7% in the second quarter. Osaic Holdings Inc. now owns 800 shares of the company's stock valued at $51,000 after acquiring an additional 188 shares in the last quarter. Hedge funds and other institutional investors own 91.55% of the company's stock.

Chefs' Warehouse Company Profile

Chefs' Warehouse, Inc is a specialty food distributor that supplies a broad range of high‐end ingredients and culinary products to professional chefs, restaurants, hotels, and other foodservice operators. Headquartered in Maspeth, New York, the company sources its portfolio from local artisans, boutique producers and leading global suppliers. Its core offerings include fresh and frozen proteins, specialty cuts of meat and seafood, handcrafted cheeses and charcuterie, seasonal produce, value‐added preparations, pantry staples and premium desserts and beverages.

The company operates a network of distribution centers strategically located in major metropolitan markets across North America.

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