Cheesecake Factory (NASDAQ:CAKE) Rating Increased to Buy at StockNews.com

StockNews.com upgraded shares of Cheesecake Factory (NASDAQ:CAKE - Free Report) from a hold rating to a buy rating in a report published on Wednesday morning.

Other analysts also recently issued reports about the stock. Citigroup lifted their price target on shares of Cheesecake Factory from $46.00 to $51.00 and gave the company a "buy" rating in a report on Friday, October 4th. Stephens upped their target price on Cheesecake Factory from $50.00 to $51.00 and gave the stock an "overweight" rating in a research note on Wednesday, October 30th. UBS Group raised their price objective on Cheesecake Factory from $32.00 to $36.00 and gave the company a "sell" rating in a report on Friday, October 25th. Bank of America upped their price target on Cheesecake Factory from $47.00 to $49.00 and gave the company a "neutral" rating in a research note on Wednesday, October 30th. Finally, Wedbush upped their target price on shares of Cheesecake Factory from $52.00 to $59.00 and gave the stock an "outperform" rating in a research note on Thursday, November 14th. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $44.75.

Cheesecake Factory Price Performance

Shares of NASDAQ CAKE traded up $0.06 during midday trading on Wednesday, reaching $46.63. 705,220 shares of the company were exchanged, compared to its average volume of 970,577. The stock has a market cap of $2.38 billion, a P/E ratio of 17.71, a PEG ratio of 1.32 and a beta of 1.47. The company has a quick ratio of 0.33, a current ratio of 0.44 and a debt-to-equity ratio of 1.19. Cheesecake Factory has a one year low of $30.96 and a one year high of $50.75. The stock's 50-day moving average price is $42.33 and its 200-day moving average price is $39.66.

Cheesecake Factory (NASDAQ:CAKE - Get Free Report) last announced its quarterly earnings results on Tuesday, October 29th. The restaurant operator reported $0.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.47 by $0.11. Cheesecake Factory had a net margin of 3.63% and a return on equity of 43.90%. The firm had revenue of $865.50 million for the quarter, compared to the consensus estimate of $866.13 million. During the same period in the prior year, the firm posted $0.39 earnings per share. The company's revenue for the quarter was up 4.3% on a year-over-year basis. On average, sell-side analysts anticipate that Cheesecake Factory will post 3.3 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, November 26th. Stockholders of record on Wednesday, November 13th will be issued a dividend of $0.27 per share. The ex-dividend date is Wednesday, November 13th. This represents a $1.08 annualized dividend and a dividend yield of 2.32%. Cheesecake Factory's payout ratio is presently 41.06%.

Insider Activity at Cheesecake Factory

In related news, insider Keith Carango sold 13,095 shares of the stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $49.88, for a total value of $653,178.60. Following the completion of the transaction, the insider now directly owns 14,977 shares of the company's stock, valued at $747,052.76. This trade represents a 46.65 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 8.10% of the stock is owned by company insiders.

Institutional Trading of Cheesecake Factory

Several hedge funds have recently modified their holdings of CAKE. American Century Companies Inc. increased its stake in Cheesecake Factory by 31.1% in the second quarter. American Century Companies Inc. now owns 942,694 shares of the restaurant operator's stock valued at $37,038,000 after purchasing an additional 223,497 shares during the last quarter. JCP Investment Management LLC acquired a new stake in shares of Cheesecake Factory during the 2nd quarter valued at $5,149,000. Victory Capital Management Inc. lifted its position in Cheesecake Factory by 32.7% during the 3rd quarter. Victory Capital Management Inc. now owns 403,271 shares of the restaurant operator's stock worth $16,353,000 after acquiring an additional 99,341 shares during the last quarter. Earnest Partners LLC raised its position in Cheesecake Factory by 2.8% in the second quarter. Earnest Partners LLC now owns 2,831,381 shares of the restaurant operator's stock worth $111,245,000 after purchasing an additional 76,578 shares in the last quarter. Finally, State Street Corp increased its stake in shares of Cheesecake Factory by 3.7% in the third quarter. State Street Corp now owns 1,876,295 shares of the restaurant operator's stock valued at $76,084,000 after buying an additional 67,550 shares in the last quarter. 94.48% of the stock is currently owned by institutional investors and hedge funds.

Cheesecake Factory Company Profile

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.