Investors Purchase High Volume of Shake Shack Call Options (NYSE:SHAK)

Shake Shack, Inc. (NYSE:SHAK) was the target of some unusual options trading activity on Tuesday. Stock traders acquired 5,453 call options on the company. This represents an increase of approximately 47% compared to the average volume of 3,713 call options.

Hedge Funds Weigh In On Shake Shack

Several large investors have recently made changes to their positions in SHAK. 12 West Capital Management LP increased its position in Shake Shack by 12.0% in the 4th quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company’s stock worth $159,385,000 after buying an additional 210,000 shares during the period. Bank of America Corp DE lifted its holdings in shares of Shake Shack by 9.3% during the first quarter. Bank of America Corp DE now owns 899,013 shares of the company’s stock worth $79,536,000 after buying an additional 76,724 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Shake Shack by 2.5% during the first quarter. Dimensional Fund Advisors LP now owns 670,111 shares of the company’s stock worth $59,276,000 after buying an additional 16,439 shares during the last quarter. Cannell & Spears LLC boosted its position in shares of Shake Shack by 27.4% in the first quarter. Cannell & Spears LLC now owns 452,694 shares of the company’s stock valued at $40,022,000 after acquiring an additional 97,446 shares during the period. Finally, Wasatch Advisors LP boosted its position in shares of Shake Shack by 16.5% in the first quarter. Wasatch Advisors LP now owns 407,283 shares of the company’s stock valued at $36,032,000 after acquiring an additional 57,612 shares during the period. Institutional investors and hedge funds own 86.07% of the company’s stock.

Shake Shack Stock Performance

NYSE:SHAK traded up $0.78 during midday trading on Tuesday, reaching $70.12. The stock had a trading volume of 354,351 shares, compared to its average volume of 1,756,319. Shake Shack has a 1-year low of $51.60 and a 1-year high of $107.46. The firm’s fifty day simple moving average is $66.24 and its 200-day simple moving average is $69.26. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64. The stock has a market capitalization of $3.00 billion, a P/E ratio of 74.60, a PEG ratio of 7.32 and a beta of 1.68.

Shake Shack (NYSE:SHAK) last announced its earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. The firm had revenue of $417.62 million for the quarter, compared to the consensus estimate of $417.18 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business’s quarterly revenue was up 17.2% on a year-over-year basis. During the same quarter last year, the firm posted $0.44 EPS. On average, equities research analysts forecast that Shake Shack will post 1.13 EPS for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on the stock. BNP Paribas Exane lifted their price objective on shares of Shake Shack from $77.00 to $81.00 and gave the company an “outperform” rating in a research note on Thursday, August 6th. Morgan Stanley set a $74.00 target price on shares of Shake Shack in a research report on Thursday, August 6th. Zacks Research upgraded Shake Shack from a “strong sell” rating to a “hold” rating in a report on Wednesday, August 5th. Wall Street Zen raised Shake Shack from a “sell” rating to a “hold” rating in a research report on Saturday, September 12th. Finally, UBS Group decreased their price target on Shake Shack from $79.00 to $68.00 and set a “neutral” rating for the company in a research note on Monday, August 3rd. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $87.22.

About Shake Shack

Shake Shack Inc operates a fast-casual restaurant brand known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes, and beverages including beer and wine at select locations. Its menu emphasizes premium ingredients and includes vegetarian and other non-meat options.

The company began as a seasonal hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004. Shake Shack has since expanded through a combination of company-operated and licensed restaurants, with locations across the United States and in international markets, including parts of Asia, Europe and the Middle East.

Shake Shack also offers digital ordering, delivery, catering and merchandise.