Bank of America Corp DE Increases Stake in Shake Shack, Inc. $SHAK

Key Points

• Bank of America increased its Shake Shack stake by 9.3% in the first quarter, purchasing 76,724 additional shares. It now owns 899,013 shares, representing about 2.1% of the company and a $79.5 million position.
• Institutional investors own 86.07% of Shake Shack, while company insiders own 8.32%; insiders purchased 50,616 shares worth approximately $3.1 million during the latest quarter.
• Shake Shack reported adjusted quarterly EPS of $0.43 versus the $0.31 consensus estimate, while revenue rose 17.2% year over year to $417.6 million. Despite positive analyst sentiment and growth plans, margins remain pressured and the stock trades at a high P/E ratio of 75.63.

Bank of America Corp DE grew its stake in Shake Shack, Inc. (NYSE:SHAK - Free Report) by 9.3% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 899,013 shares of the company's stock after purchasing an additional 76,724 shares during the period. Bank of America Corp DE owned about 2.10% of Shake Shack worth $79,536,000 at the end of the most recent quarter.

Several other institutional investors have also recently made changes to their positions in SHAK. Geneos Wealth Management Inc. acquired a new stake in Shake Shack during the first quarter valued at $26,000. Hilton Head Capital Partners LLC acquired a new stake in shares of Shake Shack during the 4th quarter valued at about $25,000. Assetmark Inc. increased its stake in shares of Shake Shack by 457.6% in the 4th quarter. Assetmark Inc. now owns 368 shares of the company's stock valued at $30,000 after purchasing an additional 302 shares in the last quarter. UMB Bank n.a. raised its holdings in 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 purchasing an additional 116 shares during the period. Finally, Advisory Services Network LLC purchased a new position in Shake Shack during the third quarter worth approximately $38,000. 86.07% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In other Shake Shack news, Director Josh Silverman acquired 8,290 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average cost of $60.38 per share, for a total transaction of $500,550.20. Following the completion of the acquisition, the director owned 8,290 shares of the company's stock, valued at approximately $500,550.20. The trade was a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Robert Lynch acquired 5,000 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average price 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 $4,701,059.55. The trade was a 6.86% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders have bought 50,616 shares of company stock worth $3,109,782. 8.32% of the stock is owned by company insiders.

Trending Headlines about Shake Shack

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

• Positive Sentiment: Starboard stake provides a major catalyst: Activist investor Starboard Value has taken a new position in Shake Shack. The news fueled investor interest because Starboard may push for better margins, improved execution, or changes to the company’s growth strategy. Activist investor Starboard takes new position in Shake Shack
• Positive Sentiment: Quarterly earnings exceeded expectations: Shake Shack reported adjusted earnings of $0.43 per share, above the $0.31 consensus estimate. Revenue rose 17.2% year over year to approximately $417.6 million, narrowly exceeding forecasts. The company also opened 27 new restaurants during the quarter. Shake Shack beats Q2 expectations, opens 27 new restaurants
• Positive Sentiment: Analyst sentiment improved: DA Davidson raised its price target from $70 to $85 and upgraded the stock to Buy, while BNP Paribas Exane increased its target from $77 to $81 and assigned an Outperform rating. These revisions suggest analysts see additional upside following the earnings report and activist investment. Analyst price-target updates
• Neutral Sentiment: Growth plans remain intact: Management is targeting 60 to 65 company-operated restaurant openings in 2026 but is shifting to annual rather than quarterly guidance, reducing the frequency of near-term updates for investors. Shake Shack targets 60 to 65 company-operated Shacks in 2026
• Negative Sentiment: Margins remain under pressure: Beef inflation and other higher costs weighed on profitability despite the revenue and earnings beats. With the stock trading at a high earnings multiple, investors may remain sensitive to any deterioration in margins or slower growth.
• Neutral Sentiment: Zacks upgraded Shake Shack from Strong Sell to Hold, signaling reduced bearishness but not a bullish recommendation. Zacks.com

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on SHAK shares. BNP Paribas Exane lifted their price target on shares of Shake Shack from $77.00 to $81.00 and gave the company an "outperform" rating in a research note on Thursday. Citigroup restated a "buy" rating on shares of Shake Shack in a research report on Wednesday, June 3rd. Piper Sandler cut their price target on Shake Shack from $79.00 to $66.00 and set a "neutral" rating for the company in a report on Tuesday, July 14th. Zacks Research upgraded Shake Shack from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 5th. Finally, Deutsche Bank Aktiengesellschaft reduced their price objective on Shake Shack from $105.00 to $93.00 and set a "buy" rating on the stock in a research report on Thursday, July 9th. Fifteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $89.74.

Shake Shack Price Performance

Shake Shack stock opened at $71.09 on Monday. The company has a current ratio of 1.67, a quick ratio of 1.64 and a debt-to-equity ratio of 0.43. The company has a 50-day moving average price of $58.64 and a 200 day moving average price of $77.83. Shake Shack, Inc. has a 12-month low of $51.60 and a 12-month high of $111.76. The stock has a market cap of $3.04 billion, a P/E ratio of 75.63, a PEG ratio of 7.88 and a beta of 1.63.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The company had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. During the same period in the previous year, the business posted $0.44 EPS. Shake Shack's revenue was up 17.2% on a year-over-year basis. Sell-side analysts anticipate that Shake Shack, Inc. will post 1.12 earnings per share for the current year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source