Cheesecake Factory Inc. (CAKE) Shares Rise Despite Market Challenges

Cheesecake Factory Inc. (NASDAQ: CAKE)’s stock price has soared by 0.35 in relation to previous closing price of 36.93. Nevertheless, the company has seen a gain of 7.17% in its stock price over the last five trading days. Seeking Alpha reported 2024-03-31 that March 2024 AAII Journal, screens, and a Barron’s reporters combined to list two sets of stocks herewith called: “AAII/Barron’s All-Stars Q1/24”. The AII article was titled ‘Stock Screen All-Stars’, and the Barron’s piece was ‘5 Small Cap Stocks Poised to Rebound’. Here are 22 stocks of which fourteen pay dividends and one of those was ideal, showing dividends from 1K invested greater than its stock price as of 3/28/24.

Is It Worth Investing in Cheesecake Factory Inc. (NASDAQ: CAKE) Right Now?

Cheesecake Factory Inc. (NASDAQ: CAKE) has a higher price-to-earnings ratio of 17.99x compared to its average ratio. CAKE has 36-month beta value of 1.49. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 2 as “overweight,” 15 as “hold,” and 1 as “sell.”

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The public float for CAKE is 47.12M, and currently, short sellers hold a 14.15% ratio of that float. The average trading volume of CAKE on April 04, 2024 was 812.85K shares.

CAKE’s Market Performance

CAKE’s stock has seen a 7.17% increase for the week, with a 5.28% rise in the past month and a 7.86% gain in the past quarter. The volatility ratio for the week is 2.50%, and the volatility levels for the past 30 days are at 2.50% for Cheesecake Factory Inc. The simple moving average for the past 20 days is 2.87% for CAKE’s stock, with a 11.04% simple moving average for the past 200 days.

Analysts’ Opinion of CAKE

Many brokerage firms have already submitted their reports for CAKE stocks, with JP Morgan repeating the rating for CAKE by listing it as a “Underweight.” The predicted price for CAKE in the upcoming period, according to JP Morgan is $33 based on the research report published on January 23, 2024 of the current year 2024.

Wedbush, on the other hand, stated in their research note that they expect to see CAKE reach a price target of $40, previously predicting the price at $34. The rating they have provided for CAKE stocks is “Outperform” according to the report published on December 21st, 2023.

Deutsche Bank gave a rating of “Hold” to CAKE, setting the target price at $32 in the report published on October 19th of the previous year.

CAKE Trading at 5.13% from the 50-Day Moving Average

After a stumble in the market that brought CAKE to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -2.96% of loss for the given period.

Volatility was left at 2.50%, however, over the last 30 days, the volatility rate increased by 2.50%, as shares surge +3.38% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +8.81% upper at present.

During the last 5 trading sessions, CAKE rose by +7.17%, which changed the moving average for the period of 200-days by +9.00% in comparison to the 20-day moving average, which settled at $36.09. In addition, Cheesecake Factory Inc. saw 5.86% in overturn over a single year, with a tendency to cut further gains.

Stock Fundamentals for CAKE

Current profitability levels for the company are sitting at:

  • 0.04 for the present operating margin
  • 0.33 for the gross margin

The net margin for Cheesecake Factory Inc. stands at 0.03. The total capital return value is set at 0.07. Equity return is now at value 33.23, with 3.61 for asset returns.

Based on Cheesecake Factory Inc. (CAKE), the company’s capital structure generated 0.66 points at debt to capital in total, while cash flow to debt ratio is standing at 0.36. The debt to equity ratio resting at 1.9. The interest coverage ratio of the stock is 17.98.

Currently, EBITDA for the company is 268.23 million with net debt to EBITDA at 7.14. When we switch over and look at the enterprise to sales, we see a ratio of 1.08. The receivables turnover for the company is 24.07for trailing twelve months and the total asset turnover is 1.21. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.46.

Conclusion

To put it simply, Cheesecake Factory Inc. (CAKE) has had a better performance in recent times. Analysts have a bullish opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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