Zacks Research Downgrades Chefs' Warehouse (NASDAQ:CHEF) to Hold

Key Points

• Zacks Research has downgraded Chefs' Warehouse from a "strong-buy" rating to a "hold" rating, indicating a shift in analyst sentiment towards the stock.
• Despite the downgrade, other analysts have maintained a positive outlook, with a consensus rating of "Moderate Buy" and a target price of $69.67.
• Chefs' Warehouse recently reported a year-over-year revenue increase of 8.4%, alongside earnings per share that exceeded analysts' estimates by $0.07.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued on Monday,Zacks.com reports.

Other analysts have also issued reports about the stock. Wall Street Zen upgraded shares of Chefs' Warehouse from a "hold" rating to a "buy" rating in a research report on Saturday, September 20th. Piper Sandler started coverage on shares of Chefs' Warehouse in a research report on Wednesday, August 27th. They set a "neutral" rating and a $66.00 price target for the company. UBS Group upped their price target on shares of Chefs' Warehouse from $68.00 to $72.00 and gave the company a "buy" rating in a research report on Monday, July 28th. Finally, Benchmark increased their target price on shares of Chefs' Warehouse from $68.00 to $79.00 and gave the stock a "buy" rating in a report on Thursday, July 31st. Six equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Chefs' Warehouse currently has a consensus rating of "Moderate Buy" and a consensus target price of $69.67.

Chefs' Warehouse Stock Down 0.3%

CHEF opened at $58.33 on Monday. The business's fifty day simple moving average is $63.48 and its 200 day simple moving average is $60.77. The company has a quick ratio of 1.17, a current ratio of 2.01 and a debt-to-equity ratio of 1.24. Chefs' Warehouse has a 52 week low of $38.36 and a 52 week high of $68.94. The stock has a market cap of $2.38 billion, a PE ratio of 36.46 and a beta of 1.76.

Chefs' Warehouse (NASDAQ:CHEF - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.07. Chefs' Warehouse had a net margin of 1.76% and a return on equity of 13.60%. The business had revenue of $1.03 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period in the prior year, the business posted $0.40 earnings per share. The company's revenue was up 8.4% on a year-over-year basis. Chefs' Warehouse has set its FY 2025 guidance at EPS. As a group, research analysts expect that Chefs' Warehouse will post 1.73 earnings per share for the current fiscal year.

Insider Transactions at Chefs' Warehouse

In related news, CAO Tim Mccauley sold 17,500 shares of the stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $65.07, for a total value of $1,138,725.00. Following the completion of the transaction, the chief accounting officer directly owned 52,050 shares of the company's stock, valued at $3,386,893.50. This represents a 25.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 11.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Chefs' Warehouse

Institutional investors have recently bought and sold shares of the stock. CWM LLC raised its stake in Chefs' Warehouse by 50.6% in the first quarter. CWM LLC now owns 542 shares of the company's stock worth $30,000 after buying an additional 182 shares in the last quarter. Center for Financial Planning Inc. bought a new position in Chefs' Warehouse in the second quarter worth about $35,000. Caitong International Asset Management Co. Ltd bought a new position in Chefs' Warehouse in the first quarter worth about $37,000. Osaic Holdings Inc. raised its stake in Chefs' Warehouse by 30.7% in the second quarter. Osaic Holdings Inc. now owns 800 shares of the company's stock worth $51,000 after buying an additional 188 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S bought a new position in Chefs' Warehouse in the first quarter worth about $46,000. 91.55% of the stock is owned by institutional investors.

Chefs' Warehouse Company Profile

The Chefs' Warehouse, Inc, together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company's product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour.

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