Chefs’ Warehouse (NASDAQ:CHEF) Downgraded by Zacks Investment Research to Sell

Chefs’ Warehouse (NASDAQ:CHEF) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Thursday, Zacks.com reports.

According to Zacks, “Chefs’ Warehouse Holdings, LLC is a distributor of specialty food products in the United States. The Company is focused on serving the specific needs of chefs who own and/or operate restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools and specialty food stores. Its product portfolio includes artisan charcuterie, specialty cheeses, unique oils and vinegars, hormone-free protein, truffles, caviar, and chocolate. It also offers cooking oils, butter, eggs, milk, and flour. Chefs’ Warehouse Holdings, LLC is based in Ridgefield, Connecticut. “

A number of other analysts have also recently commented on the stock. Wolfe Research began coverage on shares of Chefs’ Warehouse in a research note on Thursday, September 30th. They issued an “outperform” rating and a $38.00 target price for the company. TheStreet upgraded shares of Chefs’ Warehouse from a “d+” rating to a “c-” rating in a research note on Monday, October 18th. Finally, Benchmark began coverage on shares of Chefs’ Warehouse in a research report on Friday, December 17th. They set a “buy” rating and a $41.00 price target for the company. One research analyst has rated the stock with a sell rating and four have given a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Buy” and a consensus target price of $39.40.

NASDAQ:CHEF opened at $32.69 on Thursday. The company’s 50-day simple moving average is $32.61 and its 200-day simple moving average is $31.26. The stock has a market capitalization of $1.24 billion, a P/E ratio of -23.52 and a beta of 2.29. The company has a debt-to-equity ratio of 1.16, a quick ratio of 1.76 and a current ratio of 2.48. Chefs’ Warehouse has a fifty-two week low of $25.60 and a fifty-two week high of $37.85.

Chefs’ Warehouse (NASDAQ:CHEF) last released its earnings results on Tuesday, October 26th. The company reported $0.12 EPS for the quarter, topping analysts’ consensus estimates of $0.08 by $0.04. The company had revenue of $484.30 million during the quarter, compared to analysts’ expectations of $450.08 million. Chefs’ Warehouse had a negative net margin of 3.43% and a negative return on equity of 9.28%. Chefs’ Warehouse’s revenue for the quarter was up 90.7% on a year-over-year basis. During the same period last year, the business earned ($0.38) EPS. On average, research analysts forecast that Chefs’ Warehouse will post -0.16 EPS for the current year.

In other news, CEO Christopher Pappas sold 300,000 shares of Chefs’ Warehouse stock in a transaction that occurred on Tuesday, November 9th. The shares were sold at an average price of $35.32, for a total transaction of $10,596,000.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO James Leddy sold 1,000 shares of Chefs’ Warehouse stock in a transaction that occurred on Wednesday, November 3rd. The shares were sold at an average price of $37.00, for a total transaction of $37,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 302,000 shares of company stock valued at $10,668,000 over the last three months. 14.70% of the stock is currently owned by insiders.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BNP Paribas Arbitrage SA increased its holdings in Chefs’ Warehouse by 133.3% in the 3rd quarter. BNP Paribas Arbitrage SA now owns 33,789 shares of the company’s stock worth $1,101,000 after acquiring an additional 19,307 shares in the last quarter. Millennium Management LLC increased its holdings in Chefs’ Warehouse by 86.5% in the 3rd quarter. Millennium Management LLC now owns 12,820 shares of the company’s stock worth $418,000 after acquiring an additional 5,945 shares in the last quarter. Point72 Asset Management L.P. increased its holdings in Chefs’ Warehouse by 35.8% in the 3rd quarter. Point72 Asset Management L.P. now owns 497,000 shares of the company’s stock worth $16,187,000 after acquiring an additional 131,100 shares in the last quarter. California State Teachers Retirement System increased its holdings in Chefs’ Warehouse by 3.5% in the 3rd quarter. California State Teachers Retirement System now owns 44,773 shares of the company’s stock worth $1,458,000 after acquiring an additional 1,512 shares in the last quarter. Finally, Eaton Vance Management increased its holdings in Chefs’ Warehouse by 22.9% in the 3rd quarter. Eaton Vance Management now owns 618,441 shares of the company’s stock worth $20,074,000 after acquiring an additional 115,301 shares in the last quarter. 85.18% of the stock is owned by institutional investors.

Chefs’ Warehouse Company Profile

The Chefs’ Warehouse, Inc engages in the distribution of specialty food products. It focuses on serving the specific needs of chefs who own and operate some of the menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos and specialty food stores.

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