Cheesecake Factory (NASDAQ:CAKE) Hits New 12-Month High – Still a Buy?

The Cheesecake Factory Incorporated (NASDAQ:CAKE)’s share price hit a new 52-week high during mid-day trading on Thursday . The stock traded as high as $79.62 and last traded at $79.5270, with a volume of 133935 shares traded. The stock had previously closed at $78.17.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on the company. Barclays raised their price objective on Cheesecake Factory from $58.00 to $60.00 and gave the company an “underweight” rating in a research note on Thursday, April 30th. Stephens increased their target price on shares of Cheesecake Factory from $61.00 to $65.00 and gave the company an “equal weight” rating in a report on Thursday, April 30th. Citigroup lowered shares of Cheesecake Factory from a “buy” rating to a “neutral” rating in a research report on Monday, June 15th. Wells Fargo & Company boosted their price target on shares of Cheesecake Factory from $60.00 to $65.00 and gave the stock an “equal weight” rating in a report on Thursday, April 30th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $68.00 price objective on shares of Cheesecake Factory in a research report on Thursday, April 30th. Five equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $64.94.

Cheesecake Factory Stock Up 1.7%

The company has a market capitalization of $3.99 billion, a PE ratio of 23.50, a P/E/G ratio of 1.90 and a beta of 1.04. The stock’s fifty day moving average is $65.92 and its two-hundred day moving average is $60.43. The company has a current ratio of 0.59, a quick ratio of 0.53 and a debt-to-equity ratio of 1.22.

Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $1.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.03 by $0.02. The business had revenue of $978.83 million during the quarter, compared to the consensus estimate of $964.57 million. Cheesecake Factory had a net margin of 4.34% and a return on equity of 43.74%. The firm’s quarterly revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the company posted $0.93 earnings per share. As a group, analysts predict that The Cheesecake Factory Incorporated will post 4.01 EPS for the current year.

Cheesecake Factory Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Wednesday, May 13th were issued a $0.30 dividend. This represents a $1.20 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date of this dividend was Wednesday, May 13th. Cheesecake Factory’s payout ratio is 35.09%.

Insider Activity at Cheesecake Factory

In other Cheesecake Factory news, Chairman David Overton sold 104,000 shares of the stock in a transaction on Friday, May 1st. The stock was sold at an average price of $61.02, for a total transaction of $6,346,080.00. Following the completion of the transaction, the chairman directly owned 3,079,779 shares of the company’s stock, valued at approximately $187,928,114.58. This represents a 3.27% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Alexander L. Cappello sold 2,490 shares of the firm’s stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $64.90, for a total value of $161,601.00. Following the completion of the sale, the director directly owned 6,171 shares of the company’s stock, valued at $400,497.90. This represents a 28.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 8.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Cheesecake Factory

Several institutional investors have recently added to or reduced their stakes in CAKE. California State Teachers Retirement System raised its position in shares of Cheesecake Factory by 24.9% in the first quarter. California State Teachers Retirement System now owns 55,576 shares of the restaurant operator’s stock valued at $3,043,000 after purchasing an additional 11,088 shares during the period. Quantinno Capital Management LP boosted its holdings in Cheesecake Factory by 32.3% in the 1st quarter. Quantinno Capital Management LP now owns 12,940 shares of the restaurant operator’s stock worth $708,000 after buying an additional 3,161 shares during the period. State of Wyoming bought a new position in Cheesecake Factory in the 1st quarter worth approximately $196,000. PNC Financial Services Group Inc. grew its stake in Cheesecake Factory by 5.6% in the 1st quarter. PNC Financial Services Group Inc. now owns 10,558 shares of the restaurant operator’s stock valued at $578,000 after buying an additional 562 shares in the last quarter. Finally, Long Road Investment Counsel LLC grew its stake in Cheesecake Factory by 1.9% in the 1st quarter. Long Road Investment Counsel LLC now owns 43,920 shares of the restaurant operator’s stock valued at $2,405,000 after buying an additional 800 shares in the last quarter. 94.48% of the stock is owned by hedge funds and other 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.