The stock of The Cheesecake Factory Incorporated (NASDAQ:CAKE) is now priced at $29.53 and the shares are -1.26 points down or -4.09% lower compared to its previous closing price of $30.79. The stock had 1.843 million contracts set over the past session. CAKE shares’ daily volume is compared to its average trading volume at 3.027 million shares. However, it has a float of 42.23 million and although its performance was 8.33% over the week, it’s one to watch. Analysts have given the CAKE stock a yearly average price target of $25.33 per share. It means the stock’s downside potential is -14.22% with the CAKE share price recently placing at $29.42 to $30.69. However, some brokerage firms have priced the stock below the average, including one that has called $18.
The shorts are climbing into the The Cheesecake Factory Incorporated stock, with the latest data on short interest released on August 14, 2020, showing that short interest numbers in the CAKE shares have risen. Short interest in the stock represents just 33.82% of its float, but the volume has raised by 375189. The volume of shorted shares rised to 14.283 million from 13.908 million shares over the last two weeks. The average intraday trading volume has been 1.411 million shares, which means that days to cover moved to roughly 10.121368.
In the last trading session, The Cheesecake Factory Incorporated (NASDAQ:CAKE) raised by $2.27 over the week and gained $6.28 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $45.24. The stock recorded its established 52-week high on 11/06/19.
Since 03/17/20, the stock has traded to a low of $14.52 at 103.37%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.49. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, The Cheesecake Factory Incorporated’s two-week RSI is 66.6. This suggests that the stock is neutral at the moment and that CAKE shares’ price movement remains stable. The stochastic readings are equally revealing at 84.47% meaning the CAKE share price is currently in oversold territory.
The technical chart shows that the CAKE stock will likely settle at between $30.34 and $31.15 per share. However, if the stock dips below $29.07, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $28.61.
Currently, the stock is trading in the green of MACD, with a reading of 2.05. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at BofA Securities cut their recommendation for CAKE from Neutral to Underperform in August 03 review. Credit Suisse analysts see the stock as a Neutral with a target price of $24 in a flash note released to investors on July 09 initiating covering the stock. Gordon Haskett seeing the stock struggling downgraded it from Buy to Hold on July 01 placing it at $32 to $27.
The average rating for the CAKE equity is 2.91 and is currently gathering a bullish momentum. Of 23 analysts tracking The Cheesecake Factory Incorporated polled by Reuters, 14 rated CAKE as a hold. The remaining 9 analysts were split evenly. However, the split wasn’t equal as a majority (4) rated it as a buy or strong buy. 5 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the CAKE stock price is 24.15X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 48.4.
Zacks Consensus Estimate forecasts that the current-quarter revenues for The Cheesecake Factory Incorporated (NASDAQ:CAKE) will decrease by about -99.84%, which will see them reach $486 million. The company’s full-year revenues are, however, expected to diminish by about -19.76%, down from $2480 million to $1990 million. CAKE’s expected adjusted earnings should drop almost -172.88% to end up at -$0.43 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -144.83% to record -$1.17/share.