Cheesecake Factory (NASDAQ:CAKE) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo & Company has raised its target price for Cheesecake Factory (NASDAQ:CAKE) from $60.00 to $65.00, indicating a potential downside from the previous close.
• Cheesecake Factory reported $1.16 earnings per share (EPS) for the last quarter, surpassing analysts' expectations of $1.06.
• A significant portion of the company's stock, approximately 94.48%, is owned by institutional investors and hedge funds.

Cheesecake Factory (NASDAQ:CAKE - Free Report) had its target price increased by Wells Fargo & Company from $60.00 to $65.00 in a report published on Wednesday morning,Benzinga reports. They currently have an equal weight rating on the restaurant operator's stock.

A number of other brokerages have also commented on CAKE. UBS Group upped their price target on shares of Cheesecake Factory from $45.00 to $50.00 and gave the company a "sell" rating in a research note on Friday, July 18th. The Goldman Sachs Group reiterated a "neutral" rating and issued a $67.00 price target (up previously from $66.00) on shares of Cheesecake Factory in a research note on Thursday, July 10th. Morgan Stanley set a $45.00 price target on shares of Cheesecake Factory and gave the company an "underweight" rating in a research note on Monday, July 14th. Citigroup decreased their price target on shares of Cheesecake Factory from $67.00 to $62.00 and set a "buy" rating on the stock in a research note on Tuesday, April 15th. Finally, Robert W. Baird upped their price target on shares of Cheesecake Factory from $46.00 to $49.00 and gave the company a "neutral" rating in a research note on Thursday, May 1st. Four analysts have rated the stock with a sell rating, six have given a hold rating and seven have assigned a buy rating to the stock. According to data from MarketBeat.com, Cheesecake Factory presently has a consensus rating of "Hold" and an average target price of $61.06.

Cheesecake Factory Stock Performance

Shares of CAKE stock traded down $1.58 on Wednesday, reaching $62.33. The stock had a trading volume of 380,994 shares, compared to its average volume of 1,457,434. The company has a quick ratio of 0.43, a current ratio of 0.53 and a debt-to-equity ratio of 1.85. The firm's 50-day moving average is $60.87 and its two-hundred day moving average is $54.20. The firm has a market capitalization of $3.09 billion, a price-to-earnings ratio of 19.27, a P/E/G ratio of 1.72 and a beta of 1.16. Cheesecake Factory has a 12 month low of $33.50 and a 12 month high of $69.70.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last issued 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 analysts' expectations of $945.82 million. Cheesecake Factory had a net margin of 4.33% and a return on equity of 46.15%. Cheesecake Factory's quarterly revenue was up 5.7% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.09 EPS. On average, research analysts expect that Cheesecake Factory will post 3.71 EPS for the current fiscal year.

Cheesecake Factory Dividend Announcement

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

Insider Transactions at Cheesecake Factory

In other news, EVP Scarlett May sold 18,800 shares of the company's stock in a transaction that occurred on Monday, June 9th. The shares were sold at an average price of $58.82, for a total transaction of $1,105,816.00. Following the completion of the sale, the executive vice president owned 22,872 shares of the company's stock, valued at approximately $1,345,331.04. This represents a 45.11% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Matthew Eliot Clark sold 42,900 shares of the stock in a transaction that occurred on Tuesday, May 27th. The shares were 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 directly owned 40,878 shares of the company's stock, valued at approximately $2,289,168. The trade was a 51.21% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 133,000 shares of company stock valued at $7,456,992. Company insiders own 8.40% of the company's stock.

Hedge Funds Weigh In On Cheesecake Factory

Several institutional investors and hedge funds have recently added to or reduced their stakes in CAKE. Wellington Management Group LLP lifted its stake in Cheesecake Factory by 156.7% in the 1st quarter. Wellington Management Group LLP now owns 3,045,705 shares of the restaurant operator's stock valued at $148,204,000 after purchasing an additional 1,859,194 shares during the last quarter. Westwood Holdings Group Inc. bought a new position in shares of Cheesecake Factory during the 1st quarter worth approximately $75,795,000. Invesco Ltd. boosted its holdings in shares of Cheesecake Factory by 83.5% during the 1st quarter. Invesco Ltd. now owns 2,591,205 shares of the restaurant operator's stock worth $126,088,000 after buying an additional 1,178,722 shares in the last quarter. Driehaus Capital Management LLC bought a new position in shares of Cheesecake Factory during the 1st quarter worth approximately $47,720,000. Finally, Victory Capital Management Inc. lifted its holdings in shares of Cheesecake Factory by 64.1% in the 1st quarter. Victory Capital Management Inc. now owns 1,766,131 shares of the restaurant operator's stock worth $85,940,000 after purchasing an additional 689,784 shares in the last quarter. Institutional investors 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.