The Cheesecake Factory Incorporated (NASDAQ:CAKE) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• The Cheesecake Factory has received a consensus recommendation of "Hold" from 16 analysts, with 4 sell ratings, 5 hold ratings, and 7 buy ratings.
• Analysts have set an average target price of $61.94 for the stock, with recent reports indicating target price boosts from firms like Raymond James and Wells Fargo.
• The company declared a quarterly dividend of $0.27, with a dividend yield of 1.7% and a payout ratio of 33.23%.

Shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE - Get Free Report) have received an average recommendation of "Hold" from the sixteen analysts that are covering the company, MarketBeat.com reports. Four investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and seven have assigned a buy recommendation to the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $61.9375.

A number of analysts have issued reports on CAKE shares. Raymond James Financial boosted their target price on Cheesecake Factory from $70.00 to $73.00 and gave the company an "outperform" rating in a research report on Friday, August 15th. Wells Fargo & Company boosted their target price on Cheesecake Factory from $60.00 to $65.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 30th. Robert W. Baird set a $64.00 price target on shares of Cheesecake Factory and gave the stock a "neutral" rating in a research note on Wednesday, July 30th. Piper Sandler boosted their price target 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. Finally, Barclays boosted their price target 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.

Cheesecake Factory Stock Up 0.3%

Shares of NASDAQ CAKE opened at $62.13 on Friday. The firm has a market cap of $3.09 billion, a price-to-earnings ratio of 19.12, a PEG ratio of 1.48 and a beta of 1.17. The company has a quick ratio of 0.42, a current ratio of 0.51 and a debt-to-equity ratio of 1.40. Cheesecake Factory has a 52-week low of $35.40 and a 52-week high of $69.70. The business's 50 day moving average is $62.71 and its two-hundred day moving average is $55.28.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced 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. The company had revenue of $955.83 million for the quarter, compared to analyst estimates of $945.82 million. Cheesecake Factory had a return on equity of 45.92% and a net margin of 4.33%.The firm's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.09 earnings per share. Research analysts predict that Cheesecake Factory will post 3.71 EPS for the current year.

Cheesecake Factory Announces Dividend

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

Insiders Place Their Bets

In other Cheesecake Factory news, Director Alexander L. Cappello sold 12,388 shares of the business's stock in a transaction on Thursday, July 31st. The shares were sold at an average price of $65.88, for a total value of $816,121.44. Following the completion of the transaction, the director owned 6,806 shares in the company, valued at $448,379.28. The trade was a 64.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, CFO Matthew Eliot Clark sold 42,900 shares of the business's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $56.00, for a total transaction of $2,402,400.00. Following the completion of the transaction, the chief financial officer owned 40,878 shares of the company's stock, valued at approximately $2,289,168. This trade represents a 51.21% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 188,723 shares of company stock valued at $11,005,819. Corporate insiders own 8.40% of the company's stock.

Hedge Funds Weigh In On Cheesecake Factory

Institutional investors and hedge funds have recently modified their holdings of the company. Ameritas Advisory Services LLC acquired a new position in shares of Cheesecake Factory during the second quarter worth $28,000. Parkside Financial Bank & Trust grew its stake in shares of Cheesecake Factory by 39.2% during the second quarter. Parkside Financial Bank & Trust now owns 632 shares of the restaurant operator's stock worth $40,000 after purchasing an additional 178 shares in the last quarter. USA Financial Formulas acquired a new position in shares of Cheesecake Factory during the first quarter worth $49,000. Golden State Wealth Management LLC grew its stake in shares of Cheesecake Factory by 100.0% during the first quarter. Golden State Wealth Management LLC now owns 1,060 shares of the restaurant operator's stock worth $52,000 after purchasing an additional 530 shares in the last quarter. Finally, SBI Securities Co. Ltd. grew its stake in shares of Cheesecake Factory by 38.5% during the first quarter. SBI Securities Co. Ltd. now owns 1,244 shares of the restaurant operator's stock worth $61,000 after purchasing an additional 346 shares in the last quarter. Institutional investors and hedge funds own 94.48% of the company's stock.

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.

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