Insider Trading Report: Cheesecake Factory (CAKE)

Edie Ames, a director at Cheesecake Factory (CAKE) recently added 1,650 shares. The buy increased her stake by 25.6 percent, and came to a total purchase price of just under $75,000.

  • Special: This Company’s Share Price has Increased 1650% Since 2016
  • This is the second buy from the same director this year, following a 500 share buy back in August. Otherwise, insiders have largely been sellers over the past year, with company executives selling off shares.

    Overall, insiders at the company own 6.8 percent of shares.

    Shares of the restaurant chain are up 21 percent over the past year, although the stock price peaked in May. However, shares have flattened out over the past few months.

    The company is recovering decently from last year’s lockdowns, with revenue up 46 percent. The company has been unprofitable in the past year, but turned a small profit in the most recent quarter.

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  • Action to take: Restaurants are likely to continue to fare well, given that they are less susceptible to supply chain issues facing other industries, and a recovering economy should increase consumer spending in the months ahead. Investors could buy shares for a move higher, but the stock currently doesn’t pay a dividend.

    Traders may like the April $50 calls. Last going for about $2.75, a move higher in shares could lead to a high-double to low-triple digit return before expiration.

     

    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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