According to Bloomberg, The Cheesecake Factory Incorporated (NASDAQ: CAKE) has received an average rating of “Reduce” from sixteen analysts who currently cover the company. Of these analysts, four have recommended selling the stock, ten have suggested holding it, and two have advised buying it. It is worth noting that these ratings are subject to change based on market conditions and future developments.
The average one-year price target for the stock among brokers who have issued ratings in the past year is $36.25. This target price serves as a guideline for investors regarding what they might expect in terms of potential returns over a twelve-month period.
In terms of institutional investments, there has been recent activity among hedge funds and other investors in relation to Cheesecake Factory’s stock. Tower Research Capital LLC TRC increased its holdings in the company by 338.4% during the first quarter, now owning 982 shares valued at $34,000 after acquiring an additional 758 shares. Pinebridge Investments L.P., on the other hand, purchased a new stake in Cheesecake Factory during the second quarter priced at $38,000.
Other investors such as Clearstead Advisors LLC and State of Wyoming also acquired positions in Cheesecake Factory during earlier quarters, with their stakes amounting to $56,000 and $59,000 respectively. Dark Forest Capital Management LP rounded out this list as they purchased a new position valued at $78,000 during the first quarter. These institutional investors collectively own 88.68% of Cheesecake Factory’s outstanding shares.
Additionally, Cheesecake Factory recently announced its quarterly dividend payment which was made on August 29th to shareholders of record as of August 16th. The dividend amount per share was $0.27 with an ex-dividend date of August 15th. With this payment, the company’s annualized dividend stands at $1.08 per share, resulting in a yield of 3.70%. The dividend payout ratio (DPR) for Cheesecake Factory currently sits at 82.44%.
Investors and market participants should keep in mind that these figures and ratings are based on the information available up until September 22, 2023. As with any investment, it is crucial to conduct thorough research and consider various factors such as financial performance, industry trends, and market conditions before making any decisions.
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Analyzing Research Analyst Reports on Cheesecake Factory: Insights and Outlook for Investors
Analyzing Research Analyst Reports on Cheesecake Factory
Research analyst reports play a crucial role in providing investors with valuable insights into the financial performance and future prospects of companies. The cheesecake chain giant, Cheesecake Factory (NASDAQ:CAKE), has recently been the subject of several research analyst reports, shedding light on its current standing in the market.
In July 2023, Piper Sandler initiated coverage on Cheesecake Factory and assigned a “neutral” rating to the stock. Additionally, they set a price target of $36.00 for the company’s shares. This approach indicates that Piper Sandler believes Cheesecake Factory’s performance aligns with market expectations.
Another reputable firm, Stephens, reiterated an “overweight” rating for Cheesecake Factory in their research report in August 2023. They also set a target price of $40.00 for the company’s shares. Stephens’ positive stance suggests that they have confidence in Cheesecake Factory’s growth potential and believe it will outperform industry peers.
On the other hand, Wells Fargo & Company commenced coverage on Cheesecake Factory in June 2023 with an “equal weight” rating and a $33.00 price target for the stock. This rating implies that Wells Fargo & Company believes Cheesecake Factory will perform neither better nor worse than its competitors in the industry.
Contrarily, Morgan Stanley presented a more pessimistic view through reiterating an “underweight” rating and issuing a $31.00 price objective for shares of Cheesecake Factory in their research report released in August 2023. This means that Morgan Stanley anticipates subpar performance from the company relative to other industry players.
Lastly, Wedbush upgraded their target price on shares of Cheesecake Factory from $36.00 to $38.50 while maintaining a “neutral” rating in August 2023. According to Wedbush, Cheesecake Factory’s valuation remains consistent with the industry average, although slight improvements are expected.
As of September 22, 2023, CAKE stock opened at $29.16. It is worth noting that the stock experienced a 1-year low of $27.91 and a 1-year high of $41.28. Cheesecake Factory’s financial health reveals a debt-to-equity ratio of 1.44, indicating moderate leverage. Moreover, the company has a current ratio of 0.48 and a quick ratio of 0.38, showcasing its ability to meet short-term financial obligations.
Examining its price trends, Cheesecake Factory has maintained a fifty-day moving average price of $33.46 and a two-hundred-day moving average price of $33.66 as of the reference date (September 22, 2023). These averages give investors an idea about recent market sentiment towards the company’s stock.
Cheesecake Factory reported its quarterly earnings results on August 2nd, 2023. The company exceeded analysts’ consensus estimates by reporting earnings per share (EPS) of $0.88 for the quarter compared to the expected $0.81 EPS – an outperformance by $0.07 per share.
The net margin posted by Cheesecake Factory for this quarter stood at 1.91%, while return on equity was reported at an impressive rate of 32.08%. However, it is important to note that revenue for the quarter amounted to $866.20 million, falling slightly short of analysts’ expectations which were set at $880.15 million.
Comparing these figures with the same period in the prior year ($0.52 EPS), one can observe positive growth in terms of both earnings and revenue for Cheesecake Factory during this quarter.
For fiscal year predictions, sell-side analysts collectively forecast that Cheesecake Factory will post an EPS of 2.75. These projections provide investors with an estimation of the company’s future earnings potential.
In conclusion, research analyst reports have delved into various aspects of Cheesecake Factory and its performance in the market. While some analysts display a positive outlook on the company, others adopt a more cautious stance. Investors would benefit from carefully evaluating these reports to make informed decisions regarding their investment strategies.
