The Cheesecake Factory Incorporated (CAKE) Trading Down 6.2% Following Analyst Downgrade

Shares of The Cheesecake Factory Incorporated (NASDAQ:CAKE) dropped 6.2% during mid-day trading on Thursday after Nomura lowered their price target on the stock from $50.00 to $44.00. Nomura currently has a neutral rating on the stock. The Cheesecake Factory traded as low as $44.12 and last traded at $44.19, with a volume of 3,408,954 shares. The stock had previously closed at $47.13.

Other analysts have also recently issued reports about the company. Maxim Group raised The Cheesecake Factory from a “hold” rating to a “buy” rating and set a $65.00 target price for the company in a research note on Wednesday, June 14th. Wedbush reissued a “buy” rating on shares of The Cheesecake Factory in a research note on Thursday, July 13th. Piper Jaffray Companies reissued a “buy” rating and set a $65.00 target price on shares of The Cheesecake Factory in a research note on Wednesday, July 26th. Morgan Stanley reissued an “equal weight” rating and set a $56.00 target price (down from $62.00) on shares of The Cheesecake Factory in a research note on Wednesday, June 14th. Finally, Barclays PLC reduced their price target on The Cheesecake Factory from $56.00 to $53.00 and set an “equal weight” rating for the company in a research report on Wednesday, July 19th. Three equities research analysts have rated the stock with a sell rating, twelve have given a hold rating and five have given a buy rating to the company. The stock has a consensus rating of “Hold” and an average target price of $54.78.

In other news, VP Debby R. Zurzolo sold 6,424 shares of the stock in a transaction that occurred on Thursday, June 1st. The stock was sold at an average price of $59.09, for a total value of $379,594.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 8.50% of the company’s stock.

Large investors have recently made changes to their positions in the stock. BlackRock Inc. increased its stake in shares of The Cheesecake Factory by 21,381.3% in the first quarter. BlackRock Inc. now owns 4,842,308 shares of the restaurant operator’s stock valued at $306,812,000 after buying an additional 4,819,766 shares in the last quarter. Vanguard Group Inc. increased its stake in shares of The Cheesecake Factory by 3.6% in the second quarter. Vanguard Group Inc. now owns 4,171,917 shares of the restaurant operator’s stock valued at $209,847,000 after buying an additional 146,756 shares in the last quarter. Neuberger Berman Group LLC increased its stake in shares of The Cheesecake Factory by 15.7% in the first quarter. Neuberger Berman Group LLC now owns 2,141,608 shares of the restaurant operator’s stock valued at $135,692,000 after buying an additional 291,097 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of The Cheesecake Factory by 3.9% in the first quarter. Wellington Management Group LLP now owns 1,846,350 shares of the restaurant operator’s stock valued at $116,985,000 after buying an additional 69,832 shares in the last quarter. Finally, Bank of New York Mellon Corp increased its stake in shares of The Cheesecake Factory by 2.1% in the first quarter. Bank of New York Mellon Corp now owns 1,693,864 shares of the restaurant operator’s stock valued at $107,324,000 after buying an additional 34,923 shares in the last quarter. 96.40% of the stock is owned by institutional investors and hedge funds.

The stock’s 50 day moving average is $48.62 and its 200 day moving average is $57.57. The firm has a market capitalization of $2.06 billion, a price-to-earnings ratio of 15.67 and a beta of 0.31.

The Cheesecake Factory (NASDAQ:CAKE) last posted its quarterly earnings data on Wednesday, August 2nd. The restaurant operator reported $0.78 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.76 by $0.02. The Cheesecake Factory had a return on equity of 22.92% and a net margin of 6.10%. The business had revenue of $569.87 million for the quarter, compared to analysts’ expectations of $573.12 million. During the same quarter in the previous year, the firm earned $0.78 earnings per share. The business’s revenue was up 2.0% on a year-over-year basis. On average, analysts expect that The Cheesecake Factory Incorporated will post $2.67 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 29th. Shareholders of record on Wednesday, August 16th will be given a $0.29 dividend. The ex-dividend date is Monday, August 14th. This represents a $1.16 annualized dividend and a yield of 2.59%. This is a boost from The Cheesecake Factory’s previous quarterly dividend of $0.24. The Cheesecake Factory’s payout ratio is currently 33.68%.

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About The Cheesecake Factory

The Cheesecake Factory Incorporated is engaged in the restaurant and bakery business. As of March 2, 2017, the Company operated 208 Company-owned restaurants: 194 under The Cheesecake Factory mark, 13 under the Grand Lux Cafe mark and one under the Rock Sugar Pan Asian Kitchen mark. The Company’s segments include The Cheesecake Factory restaurants, and other.

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