Robert Lynch Buys 5,000 Shares of Shake Shack (NYSE:SHAK) Stock

Shake Shack, Inc. (NYSE:SHAK) CEO Robert Lynch bought 5,000 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average price of $60.39 per share, for a total transaction of $301,950.00. Following the purchase, the chief executive officer owned 77,845 shares in the company, valued at $4,701,059.55. This represents a 6.86% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Shake Shack Stock Up 7.3%

SHAK opened at $64.08 on Wednesday. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69. Shake Shack, Inc. has a fifty-two week low of $59.49 and a fifty-two week high of $144.65. The firm’s fifty day moving average is $89.03 and its 200 day moving average is $89.42. The stock has a market cap of $2.74 billion, a price-to-earnings ratio of 65.38, a price-to-earnings-growth ratio of 2.47 and a beta of 1.78.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings results on Thursday, May 7th. The company reported $0.00 EPS for the quarter, missing the consensus estimate of $0.11 by ($0.11). The company had revenue of $366.74 million during the quarter, compared to analysts’ expectations of $372.43 million. Shake Shack had a return on equity of 9.62% and a net margin of 2.76%.The firm’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 earned $0.14 EPS. On average, sell-side analysts forecast that Shake Shack, Inc. will post 1.24 earnings per share for the current fiscal year.

Institutional Trading of Shake Shack

A number of large investors have recently made changes to their positions in the business. Glenview Trust co increased its holdings in shares of Shake Shack by 1.5% in the 2nd quarter. Glenview Trust co now owns 6,925 shares of the company’s stock worth $974,000 after buying an additional 100 shares during the last quarter. Smartleaf Asset Management LLC increased its holdings in shares of Shake Shack by 12.5% in the 3rd quarter. Smartleaf Asset Management LLC now owns 964 shares of the company’s stock worth $91,000 after buying an additional 107 shares during the last quarter. UMB Bank n.a. increased its holdings in shares of Shake Shack by 42.2% in the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after buying an additional 116 shares during the last quarter. Maryland State Retirement & Pension System increased its holdings in shares of Shake Shack by 2.1% in the 4th quarter. Maryland State Retirement & Pension System now owns 5,905 shares of the company’s stock worth $479,000 after buying an additional 119 shares during the last quarter. Finally, Nisa Investment Advisors LLC increased its holdings in shares of Shake Shack by 5.8% in the 3rd quarter. Nisa Investment Advisors LLC now owns 2,503 shares of the company’s stock worth $234,000 after buying an additional 138 shares during the last quarter. 86.07% of the stock is currently owned by institutional investors.

Shake Shack News Roundup

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Multiple Shake Shack insiders bought shares, including CEO Robert Lynch, directors Daniel Harris Meyer, Sumaiya Balbale, Jeffrey Flug, and Josh Silverman. Large insider purchases can signal confidence that management believes the stock is undervalued. SEC filing for Robert Lynch purchase
• Positive Sentiment: Director Daniel Harris Meyer made a particularly large purchase of 32,258 shares, reinforcing the view that key insiders see value after the post-earnings selloff. SEC filing for Daniel Harris Meyer purchase
• Neutral Sentiment: Shake Shack’s latest earnings missed expectations, with EPS of $0.00 versus $0.11 expected and revenue of $366.7 million versus $372.4 million estimated. That miss remains a major reason the stock has been under pressure. Shake Shack Stock Gets Shaken After Earnings Miss
• Neutral Sentiment: Analysts still have a mixed-but-notable outlook: consensus remains “Moderate Buy,” but some firms have cut price targets after the earnings report, reflecting uncertainty about near-term growth.
• Negative Sentiment: Shake Shack is facing multiple law-firm investigations over possible securities-law violations and alleged misleading statements, which can weigh on investor confidence and create headline risk. Kessler Topaz Meltzer & Check investigation alert

Wall Street Analyst Weigh In

Several brokerages have commented on SHAK. Mizuho set a $100.00 price target on shares of Shake Shack in a research note on Friday, May 8th. Piper Sandler set a $79.00 price target on shares of Shake Shack in a research note on Thursday, May 7th. Wells Fargo & Company decreased their price target on shares of Shake Shack from $100.00 to $80.00 and set an “equal weight” rating on the stock in a research note on Friday, May 8th. Weiss Ratings downgraded shares of Shake Shack from a “hold (c)” rating to a “sell (d+)” rating in a report on Monday, May 11th. Finally, Zacks Research upgraded shares of Shake Shack from a “strong sell” rating to a “hold” rating in a report on Monday, March 9th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, Shake Shack currently has an average rating of “Moderate Buy” and a consensus price target of $107.08.

Shake Shack Company Profile

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.