Shake Shack (NYSE:SHAK) Trading 5.6% Higher After Insider Buying Activity

Shares of Shake Shack, Inc. (NYSE:SHAK) traded up 5.6% during trading on Tuesday after an insider bought additional shares in the company. The company traded as high as $64.36 and last traded at $63.06. 520,988 shares changed hands during mid-day trading, a decline of 69% from the average session volume of 1,673,268 shares. The stock had previously closed at $59.69.

Specifically, Director Daniel Harris Meyer purchased 32,258 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The shares were acquired at an average price of $61.88 per share, for a total transaction of $1,996,125.04. Following the completion of the acquisition, the director directly owned 378,670 shares in the company, valued at approximately $23,432,099.60. The trade was a 9.31% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Robert Lynch acquired 5,000 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was purchased at an average cost of $60.39 per share, for a total transaction of $301,950.00. Following the completion of the acquisition, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at approximately $4,701,059.55. This trade represents a 6.86% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In related news, Director Sumaiya Balbale purchased 4,068 shares of Shake Shack stock in a transaction on Friday, May 15th. The shares were bought at an average price of $61.42 per share, with a total value of $249,856.56. Following the transaction, the director directly owned 13,407 shares of the company’s stock, valued at approximately $823,457.94. This trade represents a 43.56% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. Raymond James Financial set a $140.00 target price on Shake Shack in a research report on Wednesday, January 21st. Stifel Nicolaus raised Shake Shack from a “hold” rating to a “buy” rating and reduced their price objective for the stock from $105.00 to $85.00 in a research note on Friday, May 8th. Piper Sandler set a $79.00 target price on shares of Shake Shack in a research report on Thursday, May 7th. Wall Street Zen downgraded shares of Shake Shack from a “hold” rating to a “strong sell” rating in a research note on Saturday. Finally, Weiss Ratings lowered Shake Shack from a “hold (c)” rating to a “sell (d+)” rating in a research report on Monday, May 11th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $107.08.

Shake Shack Price Performance

The company has a market cap of $2.72 billion, a price-to-earnings ratio of 64.87, a P/E/G ratio of 2.50 and a beta of 1.78. The company has a 50 day moving average price of $89.62 and a 200-day moving average price of $89.60. The company has a quick ratio of 1.66, a current ratio of 1.69 and a debt-to-equity ratio of 0.45.

Shake Shack (NYSE:SHAK) last issued its earnings results on Thursday, May 7th. The company reported $0.00 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.11). The business had revenue of $366.74 million during the quarter, compared to the consensus estimate of $372.43 million. Shake Shack had a return on equity of 9.62% and a net margin of 2.76%.The company’s revenue for the quarter was up 14.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.14 earnings per share. As a group, equities research analysts predict that Shake Shack, Inc. will post 1.24 EPS for the current fiscal year.

Hedge Funds Weigh In On Shake Shack

Several institutional investors have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC bought a new position in shares of Shake Shack during the 4th quarter worth $25,000. Geneos Wealth Management Inc. bought a new stake in shares of Shake Shack during the first quarter valued at about $26,000. Assetmark Inc. lifted its holdings in shares of Shake Shack by 457.6% in the fourth quarter. Assetmark Inc. now owns 368 shares of the company’s stock worth $30,000 after buying an additional 302 shares in the last quarter. UMB Bank n.a. boosted its position in shares of Shake Shack by 42.2% in the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $32,000 after acquiring an additional 116 shares during the period. Finally, Murphy & Mullick Capital Management Corp grew its stake in Shake Shack by 68.5% during the third quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company’s stock valued at $38,000 after acquiring an additional 170 shares in the last quarter. Institutional investors own 86.07% of the company’s stock.

About Shake Shack

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.