Cheesecake Factory Hits New Low After Earnings

Cheesecake Factory's quarterly report is disappointing investors

Aug 3, 2017 at 10:11 AM
facebook twitter linkedin

Analysts are weighing in on restaurant operator Cheesecake Factory Inc (NASDAQ:CAKE), wearable tech issue Fitbit Inc (NYSE:FIT), and cybersecurity stock Symantec Corporation (NASDAQ:SYMC). Here's a quick roundup of today's bearish brokerage notes on shares of CAKE, FIT, and SYMC.

Cheesecake Factory Stock Chewed Up After Earnings 

Cheesecake Factory stock is down 5.3% to trade at $44.59, and just hit an annual low of $44.24, after the firm reported second-quarter revenue just shy of expectations, and lowered its full-year guidance. No fewer than six analysts cut their price targets on CAKE stock, with Jefferies slicing its target to $46 from $52, and Canaccord Genuity dropped its target by $10 to $50, reducing its earnings estimates for 2017 and 2018 in the process.

Shares of Cheesecake Factory have now given back 33% since their May peak, and bears are loving it. Specifically, short interest accounts for almost 19% of CAKE's float, which equates to 10 times the stock's average trading pace. 

FIT Gets a Lift From Earnings, Smartwatch Buzz

Fitbit stock is up 14% to trade at $5.78, after the company reported stronger-than-expected quarterly sales and said it was pacing to launch a smartwatch before the holiday season. Nevertheless, Cowen and Company trimmed its price target on FIT stock by $1 to $6. This fits the general opinion seen on the Street from analysts, with 12 of 14 rating the shares a "hold" or "sell." This isn't too surprising, since Fitbit has given back two-thirds of its value over the past 12 months. 

SYMC Bounces After Promising Results

Symantec stock is down 0.5% to trade at $30.75, despite a strong quarterly earnings report and an upwardly revised full-year outlook from the cybersecurity company. The equity is up 31% year-to-date, and recently found strong support from its 200-day moving average. However, most analysts are taking a bearish stance following Symantec's results, with Barclays, Cowen, and RBC lowering their respective price targets to $36, $31, and $30. Baird, on the other hand, moved its price target up to $32 from $31. 

Data from the options pits paints a bearish picture, as well. SYMC has a 10-day put/call volume ratio of 2.87 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 98th annual percentile. So not only have almost three long puts been purchased for every call, but this level of interest in put buying relative to call buying is highly unusual. 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 



Special Offers from Schaeffer's Trading Partners