President of The Cheesecake Factory Bakery Incorporated Keith Carango Sold A Bunch Of Shares In Cheesecake Factory

We wouldn't blame The Cheesecake Factory Incorporated (NASDAQ:CAKE) shareholders if they were a little worried about the fact that Keith Carango, the President of The Cheesecake Factory Bakery Incorporated recently netted about US$653k selling shares at an average price of US$49.88. That's a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

Check out our latest analysis for Cheesecake Factory

The Last 12 Months Of Insider Transactions At Cheesecake Factory

Notably, that recent sale by Keith Carango is the biggest insider sale of Cheesecake Factory shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$46.94. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Keith Carango ditched 16.88k shares over the year. The average price per share was US$47.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership Of Cheesecake Factory

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cheesecake Factory insiders own about US$179m worth of shares (which is 7.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Cheesecake Factory Tell Us?

An insider hasn't bought Cheesecake Factory stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. But it is good to see that Cheesecake Factory is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cheesecake Factory. Every company has risks, and we've spotted 4 warning signs for Cheesecake Factory you should know about.

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For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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