Man Group takes new $1.9M stake in Cheesecake Factory as stock nears record high
What's the deal? Man Group plcDealroom has a profile for this one. Try Dealroom → bought a new position in The Cheesecake Factory IncorporatedDealroom has a profile for this one. Try Dealroom → (NASDAQ: CAKE) during the second quarter, acquiring 23,436 shares worth about $1,864,000, according to its latest 13F filing with the Securities and Exchange Commission.
Why now? The purchase lands as CAKE trades near the top of its range. Shares opened at $108.36 on Wednesday, close to a 12-month high of $118.46 and well above the low of $43.07.
What's the context? Man Group is one of several institutions building or expanding stakes. In the second quarter, Deutsche Bank AGDealroom has a profile for this one. Try Dealroom → bought a new position worth about $3,922,000, Oppenheimer Asset ManagementDealroom has a profile for this one. Try Dealroom → about $2,606,000, and Lotus Technology ManagementDealroom has a profile for this one. Try Dealroom → about $1,870,000. Institutional investors now own 94.48% of the stock.
How's the business doing? The restaurant operator posted $1.44 in earnings per share for the quarter ended July 28, beating the $1.18 consensus. Revenue rose 7.7% year-on-year to $1.03 billion, above the $999.54 million analysts expected.
The company carries a market capitalisation of $5.39 billion and a price-to-earnings ratio of 29.37. It paid a quarterly dividend of $0.30 per share on August 25.
What could go wrong? Insiders have been selling. Over the past three months, they offloaded 213,749 shares worth $22,301,899. President David M. Gordon sold 31,950 shares on August 10 at an average of $110.03, cutting his position 54.31%, and EVP Scarlett May sold 7,978 shares on July 31. Insiders hold 8% of the stock.
The signal: Heavy institutional ownership and a stock trading near record levels point to strong outside confidence in Cheesecake Factory. But the pace of insider selling suggests some at the top see less room to run.
Read more: tickerreport.com
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