The Cheesecake Factory Incorporated (NASDAQ:CAKE) Receives Consensus Recommendation of “Hold” from Brokerages

The Cheesecake Factory Incorporated (NASDAQ:CAKE) has been given an average rating of “Hold” by the eighteen ratings firms that are covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a sell rating, ten have given a hold rating, five have issued a buy rating and one has issued a strong buy rating on the company. The average 12 month price objective among brokers that have issued a report on the stock in the last year is $83.4667.

Several research analysts have recently weighed in on the stock. Morgan Stanley raised shares of Cheesecake Factory from an “underweight” rating to an “equal weight” rating and boosted their price objective for the company from $50.00 to $80.00 in a report on Wednesday, July 29th. UBS Group lifted their target price on shares of Cheesecake Factory from $53.00 to $60.00 and gave the stock a “sell” rating in a research report on Thursday, July 23rd. Mizuho increased their price target on Cheesecake Factory from $85.00 to $93.00 and gave the company a “neutral” rating in a report on Wednesday, July 29th. Jefferies Financial Group downgraded Cheesecake Factory from a “buy” rating to a “hold” rating and raised their price target for the stock from $75.00 to $88.00 in a research note on Wednesday, July 29th. Finally, Weiss Ratings raised Cheesecake Factory from a “buy (b-)” rating to a “buy (b)” rating in a report on Thursday, August 13th.

Cheesecake Factory Trading Down 2.3%

Cheesecake Factory stock opened at $109.49 on Tuesday. The company has a debt-to-equity ratio of 1.08, a current ratio of 0.59 and a quick ratio of 0.52. Cheesecake Factory has a one year low of $43.07 and a one year high of $118.46. The stock has a market capitalization of $5.45 billion, a PE ratio of 29.67, a price-to-earnings-growth ratio of 1.99 and a beta of 1.00. The business’s fifty day moving average is $94.74 and its 200 day moving average is $73.66.

Cheesecake Factory (NASDAQ:CAKE) last issued its earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 earnings per share for the quarter, topping analysts’ consensus estimates of $1.18 by $0.26. The business had revenue of $1.03 billion during the quarter, compared to analyst estimates of $999.54 million. Cheesecake Factory had a return on equity of 43.97% and a net margin of 4.61%.Cheesecake Factory’s revenue was up 7.7% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.16 EPS. On average, sell-side analysts predict that Cheesecake Factory will post 4.52 EPS for the current year.

Cheesecake Factory Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were paid a dividend of $0.30 per share. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Tuesday, August 11th. Cheesecake Factory’s payout ratio is currently 32.52%.

Insider Buying and Selling at Cheesecake Factory

In related news, President David M. Gordon sold 31,950 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $110.03, for a total value of $3,515,458.50. Following the transaction, the president owned 26,875 shares of the company’s stock, valued at approximately $2,957,056.25. This trade represents a 54.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Scarlett May sold 7,978 shares of the business’s stock in a transaction that occurred on Friday, July 31st. The shares were sold at an average price of $102.66, for a total transaction of $819,021.48. Following the sale, the executive vice president owned 18,241 shares of the company’s stock, valued at $1,872,621.06. This trade represents a 30.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 213,749 shares of company stock worth $22,301,899. 8.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System grew its position in shares of Cheesecake Factory by 7,444.0% during the 2nd quarter. California State Teachers Retirement System now owns 4,192,633 shares of the restaurant operator’s stock valued at $333,482,000 after acquiring an additional 4,137,057 shares during the period. Woodline Partners LP raised its holdings in Cheesecake Factory by 1,059.3% in the 3rd quarter. Woodline Partners LP now owns 618,056 shares of the restaurant operator’s stock worth $33,771,000 after purchasing an additional 564,744 shares during the period. Bank of New York Mellon Corp purchased a new position in Cheesecake Factory during the second quarter valued at $38,020,000. Bamco Inc. NY purchased a new position in Cheesecake Factory during the second quarter valued at $35,793,000. Finally, Invesco Ltd. grew its holdings in Cheesecake Factory by 24.7% during the third quarter. Invesco Ltd. now owns 2,057,118 shares of the restaurant operator’s stock valued at $112,401,000 after purchasing an additional 407,223 shares during the period. 94.48% of the stock is currently owned by institutional investors.

About Cheesecake Factory

The Cheesecake Factory Incorporated (NASDAQ:CAKE) is an American restaurant company and distributor renowned for its full-service casual-dining concept and specialty cheesecakes. Headquartered in Calabasas Hills, California, the company operates more than 200 restaurants under The Cheesecake Factory® brand across the United States, Puerto Rico and select international markets. In addition to sit-down dining, Cheesecake Factory franchised locations offer catering and take-out services, while a separate manufacturing arm supplies branded cheesecakes and desserts to supermarkets, hotels and other foodservice operators.

The origins of the brand trace back to a small cheesecake bakery founded in Detroit in the 1940s.