Second Line Capital LLC Buys New Stake in Shake Shack, Inc. $SHAK

Key Points

• Second Line Capital LLC recently acquired 16,930 shares of Shake Shack, Inc., valued at approximately $1.49 million, as reported in its 13F filing with the SEC.
• In the fourth quarter, institutional investors significantly increased their stakes in Shake Shack, with AXA S.A. growing its position by 596.2% and acquiring 118,223 shares.
• Shake Shack's latest earnings report showed a 12.6% year-over-year revenue increase, achieving $356.47 million for the quarter, surpassing analyst expectations.

Second Line Capital LLC bought a new stake in shares of Shake Shack, Inc. (NYSE:SHAK - Free Report) during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 16,930 shares of the company's stock, valued at approximately $1,493,000.

Other hedge funds have also recently modified their holdings of the company. Farther Finance Advisors LLC grew its stake in shares of Shake Shack by 939.3% during the first quarter. Farther Finance Advisors LLC now owns 291 shares of the company's stock valued at $26,000 after buying an additional 263 shares during the last quarter. Garde Capital Inc. purchased a new stake in shares of Shake Shack in the first quarter valued at approximately $35,000. Princeton Global Asset Management LLC purchased a new stake in shares of Shake Shack in the first quarter valued at approximately $44,000. Cooper Investors PTY Ltd. purchased a new stake in shares of Shake Shack in the first quarter valued at approximately $44,000. Finally, SRH Advisors LLC purchased a new stake in shares of Shake Shack in the first quarter valued at approximately $44,000. Institutional investors own 86.07% of the company's stock.

Shake Shack Stock Down 0.3%

Shares of SHAK traded down $0.29 during midday trading on Wednesday, hitting $105.30. 1,071,374 shares of the company's stock traded hands, compared to its average volume of 1,447,960. Shake Shack, Inc. has a 1 year low of $72.93 and a 1 year high of $144.65. The firm's fifty day moving average is $123.60 and its 200-day moving average is $110.52. The company has a current ratio of 1.92, a quick ratio of 1.89 and a debt-to-equity ratio of 0.48. The stock has a market capitalization of $4.50 billion, a price-to-earnings ratio of 228.92, a price-to-earnings-growth ratio of 2.42 and a beta of 1.68.

Shake Shack (NYSE:SHAK - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.07. Shake Shack had a return on equity of 9.78% and a net margin of 1.50%.The firm had revenue of $356.47 million for the quarter, compared to the consensus estimate of $352.56 million. During the same period in the prior year, the firm earned $0.27 EPS. The firm's revenue was up 12.6% on a year-over-year basis. Shake Shack has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that Shake Shack, Inc. will post 1.26 earnings per share for the current year.

Insider Activity

In related news, CFO Katherine Irene Fogertey sold 670 shares of the firm's stock in a transaction dated Tuesday, July 8th. The shares were sold at an average price of $140.03, for a total value of $93,820.10. Following the transaction, the chief financial officer directly owned 32,495 shares of the company's stock, valued at approximately $4,550,274.85. This trade represents a 2.02% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Daniel Harris Meyer sold 14,200 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The shares were sold at an average price of $140.31, for a total transaction of $1,992,402.00. Following the completion of the transaction, the director directly owned 337,984 shares in the company, valued at $47,422,535.04. This represents a 4.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 67,211 shares of company stock worth $9,247,216 over the last ninety days. 8.50% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on SHAK shares. Oppenheimer reiterated an "outperform" rating and issued a $160.00 price target (up previously from $125.00) on shares of Shake Shack in a report on Thursday, June 26th. Jefferies Financial Group lowered Shake Shack from a "hold" rating to an "underperform" rating and boosted their price target for the company from $100.00 to $120.00 in a report on Thursday, July 17th. TD Securities reiterated a "hold" rating and issued a $105.00 price target on shares of Shake Shack in a report on Thursday, June 26th. Morgan Stanley upped their target price on Shake Shack from $122.00 to $126.00 and gave the stock an "equal weight" rating in a report on Friday, August 1st. Finally, Sanford C. Bernstein set a $166.00 target price on Shake Shack and gave the stock an "overweight" rating in a report on Thursday, June 26th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $133.05.

Shake Shack Company Profile

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.