Chefs’ Warehouse (NASDAQ:CHEF) Sees Large Volume Increase – Should You Buy?

The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) shares saw unusually-strong trading volume on Thursday . 1,532,790 shares were traded during mid-day trading, an increase of 222% from the previous session’s volume of 475,429 shares.The stock last traded at $99.22 and had previously closed at $97.71.

Analyst Ratings Changes

Several research analysts recently issued reports on CHEF shares. Wall Street Zen upgraded shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a research report on Saturday. Zacks Research cut shares of Chefs’ Warehouse from a “strong-buy” rating to a “hold” rating in a research report on Monday, June 29th. Benchmark boosted their target price on shares of Chefs’ Warehouse from $90.00 to $106.00 and gave the stock a “buy” rating in a research note on Tuesday. BTIG Research upped their target price on shares of Chefs’ Warehouse from $82.00 to $100.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. Finally, Weiss Ratings cut shares of Chefs’ Warehouse from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, May 1st. Four investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $91.86.

Chefs’ Warehouse Stock Performance

The firm has a fifty day moving average of $87.88 and a 200-day moving average of $72.87. The firm has a market cap of $3.96 billion, a P/E ratio of 53.93 and a beta of 1.39. The company has a quick ratio of 1.33, a current ratio of 2.18 and a debt-to-equity ratio of 1.18.

Chefs’ Warehouse (NASDAQ:CHEF) last announced its quarterly earnings data on Wednesday, April 29th. The company reported $0.40 EPS for the quarter, topping analysts’ consensus estimates of $0.23 by $0.17. Chefs’ Warehouse had a return on equity of 15.54% and a net margin of 1.87%.The firm had revenue of $1.06 billion during the quarter, compared to analyst estimates of $1.01 billion. During the same period last year, the company earned $0.25 earnings per share. The company’s revenue was up 11.4% on a year-over-year basis. Research analysts predict that The Chefs’ Warehouse, Inc. will post 2.31 earnings per share for the current fiscal year.

Insider Activity at Chefs’ Warehouse

In related news, insider Christina Polychroni sold 4,500 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $79.21, for a total transaction of $356,445.00. Following the completion of the sale, the insider directly owned 24,642 shares of the company’s stock, valued at $1,951,892.82. The trade was a 15.44% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CEO Christopher Pappas sold 125,000 shares of the firm’s stock in a transaction that occurred on Tuesday, May 5th. The shares were sold at an average price of $78.00, for a total transaction of $9,750,000.00. Following the completion of the transaction, the chief executive officer directly owned 2,189,453 shares in the company, valued at approximately $170,777,334. The trade was a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 11.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Chefs’ Warehouse

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hantz Financial Services Inc. boosted its stake in Chefs’ Warehouse by 229.5% during the 4th quarter. Hantz Financial Services Inc. now owns 458 shares of the company’s stock worth $29,000 after acquiring an additional 319 shares during the last quarter. Caitong International Asset Management Co. Ltd increased its stake in Chefs’ Warehouse by 515.3% in the third quarter. Caitong International Asset Management Co. Ltd now owns 523 shares of the company’s stock valued at $31,000 after purchasing an additional 438 shares in the last quarter. Global Retirement Partners LLC acquired a new stake in Chefs’ Warehouse in the fourth quarter worth $31,000. Osaic Holdings Inc. raised its holdings in Chefs’ Warehouse by 30.7% in the second quarter. Osaic Holdings Inc. now owns 800 shares of the company’s stock worth $51,000 after purchasing an additional 188 shares during the period. Finally, Parallel Advisors LLC boosted its position in shares of Chefs’ Warehouse by 98.7% during the first quarter. Parallel Advisors LLC now owns 926 shares of the company’s stock worth $55,000 after purchasing an additional 460 shares in the last quarter. Institutional investors own 91.55% of the company’s stock.

Chefs’ Warehouse Company Profile

Chefs’ Warehouse, Inc is a specialty food distributor that supplies a broad range of high‐end ingredients and culinary products to professional chefs, restaurants, hotels, and other foodservice operators. Headquartered in Maspeth, New York, the company sources its portfolio from local artisans, boutique producers and leading global suppliers. Its core offerings include fresh and frozen proteins, specialty cuts of meat and seafood, handcrafted cheeses and charcuterie, seasonal produce, value‐added preparations, pantry staples and premium desserts and beverages.

The company operates a network of distribution centers strategically located in major metropolitan markets across North America.