Chefs’ Warehouse (NASDAQ:CHEF) Shares Gap Down – Time to Sell?

The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) gapped down before the market opened on Wednesday. The stock had previously closed at $108.99, but opened at $102.34. Chefs’ Warehouse shares last traded at $108.2840, with a volume of 294,133 shares.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on CHEF shares. Morgan Stanley increased their price target on shares of Chefs’ Warehouse from $120.00 to $121.00 and gave the company an “equal weight” rating in a report on Thursday. Benchmark upped their price objective on Chefs’ Warehouse from $106.00 to $125.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Zacks Research downgraded Chefs’ Warehouse from a “strong-buy” rating to a “hold” rating in a report on Tuesday, October 13th. Wall Street Zen raised shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Finally, TD Cowen upped their price target on shares of Chefs’ Warehouse from $123.00 to $131.00 and gave the company a “buy” rating in a research note on Friday, September 11th. Five investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $120.17.

Chefs’ Warehouse Stock Performance

The company’s 50 day moving average is $110.83 and its 200 day moving average is $86.59. The firm has a market cap of $4.25 billion, a P/E ratio of 44.73 and a beta of 1.44. The company has a debt-to-equity ratio of 1.01, a quick ratio of 1.31 and a current ratio of 2.21.

Chefs’ Warehouse (NASDAQ:CHEF) last issued its quarterly earnings data on Wednesday, October 28th. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.07. Chefs’ Warehouse had a net margin of 2.27% and a return on equity of 17.48%. The company had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the previous year, the firm posted $0.50 earnings per share. Chefs’ Warehouse’s revenue for the quarter was up 11.2% on a year-over-year basis. As a group, equities analysts predict that The Chefs’ Warehouse, Inc. will post 2.57 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Chefs’ Warehouse news, CEO Christopher Pappas sold 100,000 shares of the company’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $110.11, for a total value of $11,011,000.00. Following the completion of the sale, the chief executive officer directly owned 2,105,480 shares of the company’s stock, valued at approximately $231,834,402.80. This represents a 4.53% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, insider Christina Polychroni sold 2,752 shares of the stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $112.00, for a total value of $308,224.00. Following the sale, the insider directly owned 22,014 shares of the company’s stock, valued at $2,465,568. The trade was a 11.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 137,752 shares of company stock worth $15,203,174. 11.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its holdings in shares of Chefs’ Warehouse by 67.7% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 21,300 shares of the company’s stock worth $2,389,000 after acquiring an additional 8,600 shares during the last quarter. Park Avenue Securities LLC grew its stake in shares of Chefs’ Warehouse by 9.3% during the third quarter. Park Avenue Securities LLC now owns 11,115 shares of the company’s stock valued at $1,247,000 after buying an additional 946 shares during the last quarter. Signaturefd LLC grew its stake in shares of Chefs’ Warehouse by 48.9% during the third quarter. Signaturefd LLC now owns 913 shares of the company’s stock valued at $102,000 after buying an additional 300 shares during the last quarter. Fifth Third Wealth Advisors LLC purchased a new position in shares of Chefs’ Warehouse in the third quarter worth about $291,000. Finally, Inspire Investing LLC purchased a new position in shares of Chefs’ Warehouse in the third quarter worth about $2,526,000. Institutional investors own 91.55% of the company’s stock.

About Chefs’ Warehouse

Chefs’ Warehouse, Inc is a specialty food distributor serving professional chefs, restaurants, hotels, caterers, culinary institutions and other foodservice customers. The company supplies a broad range of products, including fresh produce, seafood, meat, poultry, dairy, specialty and imported foods, center-of-the-plate items, dry goods, and other ingredients used in commercial kitchens.

Founded in 1985, Chefs’ Warehouse has expanded from a regional distributor into a North American foodservice platform.