QEP Resources Inc. (QEP) Vs. The Cheesecake Factory Incorporated (CAKE): Those Ticking Clocks

QEP Resources Inc. (NYSE: QEP) shares are -70.00% down in the year-to-date (YTD) period and have moved 4.65% or $0.06 higher in the latest trading session. However, stock’s trailing 12-month performance remains nearly +414.29% lower. Comparatively, the stock is -71.88% down YTD and 50.48% over the trailing 3-month period. If we look at the shorter duration, its week performance is 11.57% and -13.46% over the month.

Analyst Recommendations

On June 18, 2020, MKM Partners recommended the QEP stock is a Buy, while earlier, JP Morgan had Upgrade the stock as a Neutral on July 20, 2020.

The stock currently trades at $1.35. The forecasts give the QEP Resources Inc. stock a price target range of $3.80 on the higher side while at least one analyst think the stock could plunge to a low of $1.00. The two limits represent an upside potential of 64.47% or -35.0%.

Earnings Forecast

Analysts estimate the earnings to decrease -100.00% in the current quarter to $0.01, down from the $0.05 reported in the same quarter a year ago. For the current year, earnings should grow to an average of $0.17, down -36.60% from $0 reported last year. Analysts also offered guidance for the next financial quarter, with their average projected EPS at between -$0.06 and $0.05. Wall Street estimates earnings per share to be at an average of -$0.47 for the next year.

Insider Transactions Summary

According to SEC data, total insider shares purchases at the company stands at 17 over the last 12 months, while SEC filings reveal that there have been 12 insider sales over the same period. Insiders have purchases 2,219,189 shares while those sold by company executives and officers stand at 492,510. The last 3 months have seen insiders trade a total of 0 and 49,918 in purchases and sales respectively.

TRICE DAVID A, a Director at the company, bought 15,000 shares worth $25485.0 at $1.70 per share on Mar 06. The Director had earlier bought another 30,000 QEP shares valued at $18000.0 on Mar 09. The shares were bought at $0.60 per share. TRICE DAVID A (Director) bought 20,000 shares at $2.07 per share on Mar 04 for a total of $41400.0 while TRICE DAVID A, (Director) bought 10,000 shares on Mar 03 for $20300.0 with each share fetching $2.03.

The Cheesecake Factory Incorporated (NASDAQ:CAKE), on the other hand, is trading around $30.79 with a market cap of $1.29B and analyst research firms have a positive stance on its shares. Analysts predict that the stock will reach $25.33 and spell out a less modest performance – a -21.56% return. Some analysts are even forecasting -$1.17 per share in earnings this year on a short term (1 year) basis.

Let us briefly look at the The Cheesecake Factory Incorporated (CAKE) financials, with a focus on its operating details as indicated in its earnings report for the last quarter.

Company balance sheet and cash flow

CAKE’s operating margin was negative on the trailing 12 months basis, remaining steady at -11.00%, while the operating expenses over the recent quarter were at $63.56 million. This represented a 78.52% of the company’s total revenues which amounted $295.85 million. With this in place, we can see that the company’s diluted EPS declined -$1.61 on the year-over-year period, growing to $0.79 as given in the last earnings report.

In terms of the balance sheet & cash flow as of (Sep 2020), the total assets figure advanced to $2.87 billion from $2.68 billion over the previous quarter. The cash flow from operating activities totaled -$35.68 million, significantly lower than the $83.77 million reported in the year-ago quarter. The company’s free cash flow for the quarter was -$65.11 million.

Insider activity

Insiders have transacted a total of 16 times at The Cheesecake Factory Incorporated over the last 6 months, with insider purchases undertaken 3 times and accounting for 7,383 shares. Insider sales totaled 12,982 shares over the same period, with these deals completed in 13 transactions. Looking at these numbers, we realize that net purchases over that period are -10.0 shares. Insiders now hold a total of 3.21M shares after the latest sales, with 0.20% net shares purchased.

Major holders

Insiders own 0.30% of the company shares with a share float percentage of 42.23M. Investors are also buoyed by the number of investors in a company, with The Cheesecake Factory Incorporated having a total of 344 institutions that hold shares in the company. The top two institutional holders are Blackrock Inc. with over 7.17 million shares worth more than $164.36 million. As of Jun 29, 2020, Blackrock Inc. held 15.77% of shares outstanding.

The other major institutional holder is Vanguard Group, Inc. (The), with the investment firm holding over 4.29 million shares as of Jun 29, 2020. The firm’s total holdings are worth over $98.23 million and represent 9.43% of shares outstanding.