The Cheesecake Factory Incorporated (NASDAQ:CAKE) President Sells $2,732,705.10 in Stock

Key Points

• David M. Gordon, President of The Cheesecake Factory, sold 43,335 shares at an average price of $63.06, representing a significant 63.85% decrease in his position.
• Cheesecake Factory reported a Q2 EPS of $1.16, exceeding analyst expectations of $1.06, and quarterly revenue increased by 5.7% year-over-year.
• The company announced a quarterly dividend of $0.27 per share, with a payout ratio of 33.23%, to be paid on August 26th.

The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) President David M. Gordon sold 43,335 shares of the company's stock in a transaction on Thursday, August 14th. The shares were sold at an average price of $63.06, for a total transaction of $2,732,705.10. Following the transaction, the president owned 24,532 shares of the company's stock, valued at approximately $1,546,987.92. The trade was a 63.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link.

Cheesecake Factory Price Performance

NASDAQ CAKE traded up $1.05 on Tuesday, hitting $62.99. 104,878 shares of the company were exchanged, compared to its average volume of 1,464,179. 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 Cheesecake Factory Incorporated has a 1-year low of $35.40 and a 1-year high of $69.70. The company has a market cap of $3.14 billion, a P/E ratio of 19.39, a P/E/G ratio of 1.50 and a beta of 1.17. The firm has a 50 day moving average of $62.47 and a two-hundred day moving average of $55.15.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last released its 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 for the quarter, compared to the consensus estimate of $945.82 million. During the same period in the prior year, the company posted $1.09 EPS. The company's revenue was up 5.7% compared to the same quarter last year. On average, equities analysts predict that The Cheesecake Factory Incorporated will post 3.71 EPS for the current year.

Cheesecake Factory Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 26th. Shareholders of record on Tuesday, August 12th will be given a dividend of $0.27 per share. The ex-dividend date is Tuesday, August 12th. This represents a $1.08 dividend on an annualized basis and a yield of 1.7%. Cheesecake Factory's dividend payout ratio is presently 33.23%.

Analyst Ratings Changes

Several brokerages have issued reports on CAKE. The Goldman Sachs Group reissued a "neutral" rating and issued a $67.00 price target (up previously from $66.00) on shares of Cheesecake Factory in a report on Thursday, July 10th. Raymond James Financial boosted their price target on shares of Cheesecake Factory from $70.00 to $73.00 and gave the company an "outperform" rating in a report on Friday. Morgan Stanley boosted their price target on shares of Cheesecake Factory from $45.00 to $47.00 and gave the company an "underweight" rating in a report on Thursday, July 31st. Barclays upped their target price on shares of Cheesecake Factory from $57.00 to $62.00 and gave the stock an "underweight" rating in a report on Wednesday, July 30th. Finally, Robert W. Baird set a $64.00 target price on shares of Cheesecake Factory and gave the stock a "neutral" rating in a report on Wednesday, July 30th. Four research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have assigned a buy rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $61.94.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Ameritas Advisory Services LLC acquired a new position in Cheesecake Factory during the 2nd quarter valued at about $28,000. Parkside Financial Bank & Trust raised its position in shares of Cheesecake Factory by 39.2% in the 2nd quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator's stock valued at $40,000 after acquiring an additional 178 shares during the period. USA Financial Formulas acquired a new stake in shares of Cheesecake Factory in the 1st quarter valued at approximately $49,000. Golden State Wealth Management LLC raised its position in shares of Cheesecake Factory by 100.0% in the 1st quarter. Golden State Wealth Management LLC now owns 1,060 shares of the restaurant operator's stock valued at $52,000 after acquiring an additional 530 shares during the period. Finally, SBI Securities Co. Ltd. raised its position in shares of Cheesecake Factory by 38.5% in the 1st quarter. SBI Securities Co. Ltd. now owns 1,244 shares of the restaurant operator's stock valued at $61,000 after acquiring an additional 346 shares during the period. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Cheesecake Factory Company Profile

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.