Cheesecake Factory (CAKE) Raised to “Buy” at ValuEngine

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ValuEngine upgraded shares of Cheesecake Factory (NASDAQ:CAKE) from a hold rating to a buy rating in a report released on Wednesday morning.

Other equities analysts have also recently issued reports about the stock. Barclays lifted their price objective on shares of Cheesecake Factory from $52.00 to $56.00 and gave the stock a $58.55 rating in a research note on Wednesday, July 18th. BidaskClub cut shares of Cheesecake Factory from a strong-buy rating to a buy rating in a research note on Thursday, August 2nd. TheStreet cut shares of Cheesecake Factory from a b rating to a c+ rating in a research note on Tuesday, October 30th. Morgan Stanley dropped their price objective on shares of Cheesecake Factory from $51.00 to $50.00 and set an equal weight rating for the company in a research note on Wednesday, August 1st. Finally, Jefferies Financial Group reaffirmed a hold rating and set a $50.00 price target on shares of Cheesecake Factory in a research note on Wednesday, August 1st. Sixteen investment analysts have rated the stock with a hold rating and two have assigned a buy rating to the company. The company has an average rating of Hold and a consensus target price of $52.93.

Shares of NASDAQ:CAKE traded up $0.01 on Wednesday, reaching $52.31. The company’s stock had a trading volume of 516,378 shares, compared to its average volume of 985,019. Cheesecake Factory has a 52-week low of $43.26 and a 52-week high of $60.19. The stock has a market capitalization of $2.40 billion, a P/E ratio of 22.16, a PEG ratio of 1.49 and a beta of 0.33. The company has a quick ratio of 0.38, a current ratio of 0.02 and a debt-to-equity ratio of 0.03.

Cheesecake Factory (NASDAQ:CAKE) last issued its quarterly earnings data on Tuesday, October 30th. The restaurant operator reported $0.62 EPS for the quarter, topping analysts’ consensus estimates of $0.58 by $0.04. Cheesecake Factory had a net margin of 6.02% and a return on equity of 18.02%. The business had revenue of $580.88 million during the quarter, compared to analysts’ expectations of $585.44 million. During the same period last year, the company posted $0.56 EPS. The business’s revenue was up 4.6% on a year-over-year basis. On average, analysts expect that Cheesecake Factory will post 2.44 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, November 27th. Investors of record on Wednesday, November 14th will be paid a dividend of $0.33 per share. The ex-dividend date is Tuesday, November 13th. This represents a $1.32 dividend on an annualized basis and a dividend yield of 2.52%. Cheesecake Factory’s dividend payout ratio is presently 50.77%.

In related news, insider Cheryl Slomann sold 1,005 shares of Cheesecake Factory stock in a transaction dated Monday, August 27th. The shares were sold at an average price of $52.94, for a total transaction of $53,204.70. Following the completion of the transaction, the insider now directly owns 12,106 shares of the company’s stock, valued at approximately $640,891.64. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Edie A. Ames purchased 500 shares of the company’s stock in a transaction that occurred on Wednesday, August 22nd. The shares were purchased at an average cost of $52.83 per share, with a total value of $26,415.00. Following the completion of the purchase, the director now owns 1,430 shares in the company, valued at approximately $75,546.90. The disclosure for this purchase can be found here. 8.80% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vident Investment Advisory LLC lifted its holdings in Cheesecake Factory by 14.4% during the 2nd quarter. Vident Investment Advisory LLC now owns 17,347 shares of the restaurant operator’s stock valued at $955,000 after buying an additional 2,181 shares in the last quarter. First Republic Investment Management Inc. lifted its holdings in Cheesecake Factory by 10.4% during the 2nd quarter. First Republic Investment Management Inc. now owns 25,072 shares of the restaurant operator’s stock valued at $1,380,000 after buying an additional 2,370 shares in the last quarter. Moody Aldrich Partners LLC bought a new stake in Cheesecake Factory during the 2nd quarter valued at about $1,363,000. Phocas Financial Corp. bought a new stake in Cheesecake Factory during the 2nd quarter valued at about $5,634,000. Finally, American Century Companies Inc. lifted its holdings in Cheesecake Factory by 19.0% during the 2nd quarter. American Century Companies Inc. now owns 130,020 shares of the restaurant operator’s stock valued at $7,159,000 after buying an additional 20,790 shares in the last quarter.

About Cheesecake Factory

The Cheesecake Factory Incorporated operates restaurants in the United States. The company produces cheesecakes and other baked products for own restaurants and international licensees, as well as external foodservice operators, retailers, and distributors. As of August 21, 2018, it operated 215 company-owned restaurants, including 199 restaurants under The Cheesecake Factory brand; 14 restaurants under the Grand Lux Cafe brand; and 2 restaurants under the RockSugar Southeast Asian Kitchen brand, as well as 21 The Cheesecake Factory branded restaurants under licensing agreements internationally.

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Analyst Recommendations for Cheesecake Factory (NASDAQ:CAKE)

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