Cheesecake Factory Inc (NASDAQ: CAKE) has seen a decline in its stock price by -1.62 in relation to its previous close of 51.79. However, the company has experienced a 2.64% gain in its stock price over the last five trading sessions. zacks.com reported 2025-01-20 that Cheesecake Factory (CAKE) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Is It Worth Investing in Cheesecake Factory Inc (NASDAQ: CAKE) Right Now?
The price-to-earnings ratio for Cheesecake Factory Inc (NASDAQ: CAKE) is 19.37x, which is above its average ratio. Moreover, the 36-month beta value for CAKE is 1.51. Analysts have varying opinions on the stock, with 7 analysts rating it as a “buy,” 2 as “overweight,” 6 as “hold,” and 2 as “sell.”
The public float for CAKE is 47.24M and currently, short sellers hold a 13.03% of that float. On January 23, 2025, CAKE’s average trading volume was 1.20M shares.
CAKE’s Market Performance
CAKE’s stock has seen a 2.64% increase for the week, with a 7.11% rise in the past month and a 18.43% gain in the past quarter. The volatility ratio for the week is 3.87%, and the volatility levels for the past 30 days are at 2.99% for Cheesecake Factory Inc The simple moving average for the last 20 days is 4.06% for CAKE stock, with a simple moving average of 24.08% for the last 200 days.
Analysts’ Opinion of CAKE
Many brokerage firms have already submitted their reports for CAKE stocks, with Oppenheimer repeating the rating for CAKE by listing it as a “Outperform.” The predicted price for CAKE in the upcoming period, according to Oppenheimer is $65 based on the research report published on January 07, 2025 of the current year 2025.
Goldman, on the other hand, stated in their research note that they expect to see CAKE reach a price target of $56. The rating they have provided for CAKE stocks is “Buy” according to the report published on December 05th, 2024.
Stephens gave a rating of “Overweight” to CAKE, setting the target price at $50 in the report published on May 15th of the previous year.
CAKE Trading at 4.32% 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 -2.21% of loss for the given period.
Volatility was left at 2.99%, however, over the last 30 days, the volatility rate increased by 3.87%, as shares surge +4.99% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.14% upper at present.
During the last 5 trading sessions, CAKE rose by +2.64%, which changed the moving average for the period of 200-days by +46.03% in comparison to the 20-day moving average, which settled at $48.96. In addition, Cheesecake Factory Inc saw 7.40% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at CAKE starting from OVERTON DAVID, who sale 269,520 shares at the price of $46.65 back on Nov 08 ’24. After this action, OVERTON DAVID now owns 2,964,594 shares of Cheesecake Factory Inc, valued at $12,573,890 using the latest closing price.
OVERTON DAVID, the Officer of Cheesecake Factory Inc, proposed sale 269,520 shares at $46.55 during a trade that took place back on Nov 08 ’24, which means that OVERTON DAVID is holding shares at $12,546,156 based on the most recent closing price.
Stock Fundamentals for CAKE
Current profitability levels for the company are sitting at:
- 0.06 for the present operating margin
- 0.12 for the gross margin
The net margin for Cheesecake Factory Inc stands at 0.04. The total capital return value is set at 0.09. Equity return is now at value 35.74, with 4.49 for asset returns.
Based on Cheesecake Factory Inc (CAKE), the company’s capital structure generated 0.83 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 4.76. The interest coverage ratio of the stock is 23.89.
Currently, EBITDA for the company is 202.9 million with net debt to EBITDA at 6.1. When we switch over and look at the enterprise to sales, we see a ratio of 1.25. The receivables turnover for the company is 34.24for 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 0.44.
Conclusion
To wrap up, the performance of Cheesecake Factory Inc (CAKE) has been better in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
