Chefs' Warehouse (NASDAQ:CHEF) Share Price Breaks Above Two Hundred Day Moving Average - What's Next?

Key Points

• Chefs’ Warehouse shares broke above their 200-day moving average, reaching $111.90 and last trading at $111.76 versus the $88.70 long-term average.
• Analysts remain bullish, with the stock carrying an average “Buy” rating and a consensus price target of $115.67; TD Cowen and BTIG recently raised their targets to $131 and $125, respectively.
• The company exceeded quarterly expectations, reporting $0.78 in EPS and $1.17 billion in revenue, while revenue grew 12.9% year over year. However, insiders sold 137,752 shares worth approximately $15.2 million during the quarter.

The Chefs' Warehouse, Inc. (NASDAQ:CHEF - Get Free Report)'s share price passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $88.70 and traded as high as $111.90. Chefs' Warehouse shares last traded at $111.76, with a volume of 446,236 shares traded.

Analyst Ratings Changes

A number of research firms have commented on CHEF. TD Cowen lifted their target price on Chefs' Warehouse from $123.00 to $131.00 and gave the company a "buy" rating in a research report on Friday, September 11th. Zacks Research upgraded Chefs' Warehouse from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. Wall Street Zen upgraded Chefs' Warehouse from a "hold" rating to a "buy" rating in a report on Saturday, July 18th. BTIG Research raised their price objective on Chefs' Warehouse from $100.00 to $125.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Finally, Morgan Stanley boosted their price objective on shares of Chefs' Warehouse from $97.00 to $104.00 and gave the company an "equal weight" rating in a report on Thursday, July 30th. One analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $115.67.

Chefs' Warehouse Price Performance

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 company's fifty day moving average is $108.99 and its two-hundred day moving average is $88.70. The stock has a market cap of $4.56 billion, a price-to-earnings ratio of 53.22 and a beta of 1.38.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last announced its earnings results on Wednesday, July 29th. The company reported $0.78 EPS for the quarter, beating analysts' consensus estimates of $0.59 by $0.19. The company had revenue of $1.17 billion during the quarter, compared to analysts' expectations of $1.12 billion. Chefs' Warehouse had a return on equity of 16.95% and a net margin of 2.09%.Chefs' Warehouse's revenue for the quarter was up 12.9% on a year-over-year basis. During the same period last year, the business posted $0.52 EPS. As a group, research analysts predict that The Chefs' Warehouse, Inc. will post 2.54 earnings per share for the current year.

Insider Transactions at Chefs' Warehouse

In other news, 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 value of $11,011,000.00. Following the completion of the transaction, the chief executive officer owned 2,105,480 shares of the company's stock, valued at approximately $231,834,402.80. This trade represents a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Christina Polychroni sold 2,752 shares of Chefs' Warehouse stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $112.00, for a total transaction of $308,224.00. Following the completion of the transaction, the insider owned 22,014 shares of the company's stock, valued at $2,465,568. This trade represents a 11.11% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 137,752 shares of company stock valued at $15,203,174. 11.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Chefs' Warehouse

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP increased its position in shares of Chefs' Warehouse by 1.6% during the first quarter. Dimensional Fund Advisors LP now owns 977,464 shares of the company's stock worth $58,110,000 after acquiring an additional 15,311 shares during the period. TimesSquare Capital Management LLC purchased a new position in Chefs' Warehouse in the second quarter valued at $37,619,000. Royal Bank of Canada boosted its holdings in Chefs' Warehouse by 23.9% in the first quarter. Royal Bank of Canada now owns 332,391 shares of the company's stock valued at $19,759,000 after purchasing an additional 64,090 shares during the period. The Manufacturers Life Insurance Company acquired a new position in Chefs' Warehouse during the 2nd quarter worth $28,010,000. Finally, Wasatch Advisors LP grew its stake in Chefs' Warehouse by 20.9% during the 1st quarter. Wasatch Advisors LP now owns 273,246 shares of the company's stock worth $16,244,000 after purchasing an additional 47,243 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 serving professional chefs, restaurants, hotels, culinary institutions and other foodservice customers. The company provides a broad selection of specialty and center-of-the-plate products, including fresh produce, seafood, meat, poultry, dairy, imported foods, dry goods, frozen items and other culinary ingredients.

In addition to food products, Chefs' Warehouse offers related supplies and services designed to support commercial kitchens and foodservice operations.

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