Cheesecake Factory (NASDAQ:CAKE) Reaches New 1-Year High – Here’s Why

The Cheesecake Factory Incorporated (NASDAQ:CAKE) reached a new 52-week high during trading on Tuesday . The company traded as high as $59.14 and last traded at $58.84, with a volume of 1334129 shares. The stock had previously closed at $57.81.

Analyst Ratings Changes

A number of research analysts recently commented on CAKE shares. JPMorgan Chase & Co. lowered their price target on Cheesecake Factory from $55.00 to $48.00 and set an “underweight” rating on the stock in a report on Thursday, March 20th. Piper Sandler lifted their price objective on Cheesecake Factory from $47.00 to $51.00 and gave the stock a “neutral” rating in a research note on Thursday, February 20th. Wedbush lifted their price objective on Cheesecake Factory from $59.00 to $61.00 and gave the stock an “outperform” rating in a research note on Thursday, February 20th. UBS Group lifted their price objective on Cheesecake Factory from $41.00 to $45.00 and gave the stock a “sell” rating in a research note on Thursday, February 20th. Finally, Barclays reduced their price objective on Cheesecake Factory from $50.00 to $46.00 and set an “underweight” rating on the stock in a research note on Tuesday, April 22nd. Four investment analysts have rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating to the company. Based on data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $54.00.

Cheesecake Factory Trading Up 0.5%

The stock has a market cap of $2.85 billion, a P/E ratio of 18.00, a P/E/G ratio of 1.31 and a beta of 1.14. The company has a current ratio of 0.44, a quick ratio of 0.33 and a debt-to-equity ratio of 1.19. The company has a 50-day moving average price of $51.51 and a two-hundred day moving average price of $50.84.

Cheesecake Factory (NASDAQ:CAKE) last released its earnings results on Wednesday, April 30th. The restaurant operator reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.81 by $0.12. The firm had revenue of $927.20 million for the quarter, compared to the consensus estimate of $927.17 million. Cheesecake Factory had a return on equity of 45.89% and a net margin of 4.38%. The company’s revenue for the quarter was up 4.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.73 EPS. On average, research analysts expect that The Cheesecake Factory Incorporated will post 3.71 EPS for the current fiscal year.

Cheesecake Factory Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, May 27th. Investors of record on Wednesday, May 14th were issued a dividend of $0.27 per share. This represents a $1.08 dividend on an annualized basis and a yield of 1.87%. The ex-dividend date of this dividend was Wednesday, May 14th. Cheesecake Factory’s payout ratio is currently 33.86%.

Insider Activity at Cheesecake Factory

In related news, insider Keith Carango sold 50,500 shares of the business’s stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $55.12, for a total transaction of $2,783,560.00. Following the completion of the transaction, the insider now owns 20,774 shares in the company, valued at $1,145,062.88. The trade was a 70.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Scarlett May sold 18,800 shares of the business’s stock in a transaction on Monday, June 9th. The shares were sold at an average price of $58.82, for a total value of $1,105,816.00. Following the transaction, the executive vice president now owns 22,872 shares of the company’s stock, valued at approximately $1,345,331.04. The trade was a 45.11% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 133,000 shares of company stock worth $7,456,992 in the last quarter. 8.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Cheesecake Factory

Several hedge funds have recently made changes to their positions in the company. Lido Advisors LLC lifted its holdings in shares of Cheesecake Factory by 2.0% in the 4th quarter. Lido Advisors LLC now owns 10,805 shares of the restaurant operator’s stock worth $513,000 after buying an additional 215 shares during the period. Summit Investment Advisors Inc. lifted its holdings in shares of Cheesecake Factory by 4.7% in the 4th quarter. Summit Investment Advisors Inc. now owns 5,051 shares of the restaurant operator’s stock worth $240,000 after buying an additional 228 shares during the period. Truist Financial Corp lifted its holdings in shares of Cheesecake Factory by 3.3% in the 4th quarter. Truist Financial Corp now owns 8,045 shares of the restaurant operator’s stock worth $382,000 after buying an additional 257 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Cheesecake Factory by 2.0% in the 1st quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 13,121 shares of the restaurant operator’s stock worth $638,000 after buying an additional 260 shares during the period. Finally, Blair William & Co. IL lifted its holdings in shares of Cheesecake Factory by 5.2% in the 4th quarter. Blair William & Co. IL now owns 5,772 shares of the restaurant operator’s stock worth $274,000 after buying an additional 283 shares during the period. 94.48% of the stock is currently owned by hedge funds and other institutional investors.

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.