Cheesecake Factory (NASDAQ:CAKE) Sees Strong Trading Volume – Here’s Why

The Cheesecake Factory Incorporated (NASDAQ:CAKE) shares saw unusually-strong trading volume on Wednesday . Approximately 2,614,730 shares traded hands during mid-day trading, an increase of 76% from the previous session’s volume of 1,481,856 shares.The stock last traded at $54.41 and had previously closed at $54.41.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on CAKE. Raymond James boosted their target price on Cheesecake Factory from $51.00 to $56.00 and gave the company an “outperform” rating in a research note on Monday, December 16th. William Blair reaffirmed an “outperform” rating on shares of Cheesecake Factory in a research report on Thursday, February 20th. Oppenheimer upgraded shares of Cheesecake Factory from a “market perform” rating to an “outperform” rating and set a $65.00 price objective on the stock in a research note on Tuesday, January 7th. Bank of America lifted 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 increased their target price on shares of Cheesecake Factory from $59.00 to $61.00 and gave the stock an “outperform” rating in a research note on Thursday, February 20th. Four analysts have rated the stock with a sell rating, six have issued a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat.com, Cheesecake Factory has an average rating of “Hold” and an average target price of $52.19.

Cheesecake Factory Price Performance

The company’s 50 day moving average price is $51.31 and its 200-day moving average price is $45.87. The company has a current ratio of 0.44, a quick ratio of 0.33 and a debt-to-equity ratio of 1.19. The company has a market capitalization of $2.73 billion, a PE ratio of 16.67, a PEG ratio of 1.31 and a beta of 1.51.

Cheesecake Factory (NASDAQ:CAKE) last released its earnings results on Wednesday, February 19th. The restaurant operator reported $1.04 EPS for the quarter, beating the consensus estimate of $0.91 by $0.13. The firm had revenue of $920.96 million for the quarter, compared to analysts’ expectations of $912.67 million. Cheesecake Factory had a net margin of 4.38% and a return on equity of 45.89%. On average, sell-side analysts forecast that The Cheesecake Factory Incorporated will post 3.71 earnings per share for the current fiscal year.

Cheesecake Factory Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 18th. Stockholders of record on Wednesday, March 5th will be issued a dividend of $0.27 per share. The ex-dividend date of this dividend is Wednesday, March 5th. This represents a $1.08 dividend on an annualized basis and a dividend yield of 2.02%. Cheesecake Factory’s dividend payout ratio (DPR) is currently 33.75%.

Institutional Investors Weigh In On Cheesecake Factory

Several institutional investors have recently added to or reduced their stakes in CAKE. Golden State Wealth Management LLC purchased a new stake in Cheesecake Factory during the 4th quarter valued at about $25,000. Versant Capital Management Inc grew its holdings in Cheesecake Factory by 108.1% in the fourth quarter. Versant Capital Management Inc now owns 616 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 320 shares during the last quarter. SBI Securities Co. Ltd. purchased a new position in Cheesecake Factory in the fourth quarter valued at $43,000. Venturi Wealth Management LLC lifted its stake in Cheesecake Factory by 1,149.5% in the 4th quarter. Venturi Wealth Management LLC now owns 1,312 shares of the restaurant operator’s stock worth $62,000 after purchasing an additional 1,207 shares in the last quarter. Finally, KBC Group NV raised its stake in Cheesecake Factory by 46.9% during the fourth quarter. KBC Group NV now owns 2,321 shares of the restaurant operator’s stock worth $110,000 after purchasing an additional 741 shares during the period. 94.48% of the stock is owned by hedge funds and other institutional investors.

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.