Cheesecake Factory (NASDAQ:CAKE) Stock Price Down 6.9% – Here’s What Happened

Shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) dropped 6.9% on Tuesday . The company traded as low as $98.93 and last traded at $97.9050. 383,534 shares traded hands during trading, a decline of 73% from the average session volume of 1,412,187 shares. The stock had previously closed at $105.17.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on CAKE. Zacks Research upgraded Cheesecake Factory from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 30th. Northcoast Research lowered Cheesecake Factory from a “buy” rating to a “neutral” rating in a research note on Monday, June 15th. Mizuho raised their target price on Cheesecake Factory from $85.00 to $93.00 and gave the company a “neutral” rating in a research note on Wednesday, July 29th. UBS Group lifted their price target on Cheesecake Factory from $53.00 to $60.00 and gave the company a “sell” rating in a report on Thursday, July 23rd. Finally, Argus upped their price target on shares of Cheesecake Factory from $72.00 to $110.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, Cheesecake Factory currently has an average rating of “Hold” and a consensus price target of $85.47.

Cheesecake Factory Stock Performance

The company has a quick ratio of 0.52, a current ratio of 0.59 and a debt-to-equity ratio of 1.08. The stock has a market cap of $4.83 billion, a P/E ratio of 26.29, a PEG ratio of 1.59 and a beta of 1.01. The stock has a fifty day simple moving average of $100.94 and a 200-day simple moving average of $77.21.

Cheesecake Factory (NASDAQ:CAKE) last announced its quarterly earnings results on Tuesday, July 28th. The restaurant operator reported $1.44 EPS for the quarter, beating analysts’ consensus estimates of $1.18 by $0.26. The company had revenue of $1.03 billion during the quarter, compared to analysts’ expectations 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 period in the prior year, the business posted $1.16 EPS. Equities analysts expect that The Cheesecake Factory Incorporated will post 4.53 earnings per share for the current fiscal year.

Cheesecake Factory Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Tuesday, August 11th were paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend was Tuesday, August 11th. Cheesecake Factory’s dividend payout ratio is presently 32.52%.

Insider Buying and Selling

In related news, Director Edie A. Ames sold 3,000 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $106.95, for a total value of $320,850.00. Following the completion of the sale, the director owned 10,000 shares in the company, valued at $1,069,500. This represents a 23.08% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, President David M. Gordon sold 31,950 shares of the firm’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $110.03, for a total value of $3,515,458.50. Following the sale, the president directly owned 26,875 shares in the company, valued at $2,957,056.25. The trade was a 54.31% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 213,749 shares of company stock valued at $22,301,899. 8.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Allworth Financial LP acquired a new stake in shares of Cheesecake Factory during the second quarter worth about $36,000. NFSG Corp increased its stake in Cheesecake Factory by 115.8% during the 1st quarter. NFSG Corp now owns 682 shares of the restaurant operator’s stock worth $37,000 after purchasing an additional 366 shares in the last quarter. Global Retirement Partners LLC bought a new stake in Cheesecake Factory during the 2nd quarter worth approximately $57,000. Root Financial Partners LLC increased its stake in Cheesecake Factory by 973.2% during the 4th quarter. Root Financial Partners LLC now owns 880 shares of the restaurant operator’s stock worth $44,000 after purchasing an additional 798 shares in the last quarter. Finally, Ascentis Independent Advisors acquired a new stake in Cheesecake Factory during the 1st quarter worth approximately $65,000. 94.48% of the stock is owned by institutional investors and hedge funds.

Cheesecake Factory Company Profile

The Cheesecake Factory Incorporated (NASDAQ: CAKE) operates full-service casual dining restaurants in the United States. Its flagship Cheesecake Factory restaurants offer an extensive menu of made-to-order dishes spanning American and international cuisines, along with a broad selection of cheesecakes and other desserts.

The company also operates North Italia, an Italian restaurant concept, and restaurants developed through Fox Restaurant Concepts. In addition, its bakery division produces cheesecakes and other baked goods for the company’s restaurants, retailers, and other foodservice customers.

Founded in 1978 by David Overton, The Cheesecake Factory began as a bakery business before opening its first restaurant in Beverly Hills, California, in 1978.