From what we can see, insiders were net sellers in The Cheesecake Factory Incorporated's (NASDAQ:CAKE ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Cheesecake Factory Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the President of The Cheesecake Factory Bakery Incorporated, Keith Carango, sold US$653k worth of shares at a price of US$49.89 per share. That means that an insider was selling shares at around the current price of US$49.87. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Keith Carango.

Keith Carango divested 16.88k shares over the last 12 months at an average price of US$47.69. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Cheesecake Factory Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Cheesecake Factory shares. In total, President of The Cheesecake Factory Bakery Incorporated Keith Carango sold US$653k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Cheesecake Factory

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cheesecake Factory insiders own 7.5% of the company, currently worth about US$190m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Cheesecake Factory Insider Transactions Indicate?

An insider sold Cheesecake Factory shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Cheesecake Factory is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Cheesecake Factory.

But note: Cheesecake Factory may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.