Shake Shack (NYSE:SHAK) Stock Sees Unusually High Call Option Buying

Key Points

• Shake Shack saw unusually heavy call-option activity: Investors bought 5,453 call options, 47% above the average daily volume of 3,713.
• Institutional investors own 86.07% of the company, with several hedge funds recently increasing their positions.
• Shares rose to $70.12, while analysts maintain a “Moderate Buy” consensus and an average price target of $87.22. The company recently beat quarterly earnings expectations and reported 17.2% year-over-year revenue growth.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report) saw unusually large options trading activity on Tuesday. Stock investors acquired 5,453 call options on the company. This is an increase of 47% compared to the average daily volume of 3,713 call options.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC grew its stake in Shake Shack by 65.0% during the 1st quarter. Hilton Head Capital Partners LLC now owns 513 shares of the company's stock valued at $45,000 after acquiring an additional 202 shares in the last quarter. Murphy & Mullick Capital Management Corp boosted its holdings in shares of Shake Shack by 42.5% during the first quarter. Murphy & Mullick Capital Management Corp now owns 738 shares of the company's stock worth $65,000 after purchasing an additional 220 shares during the period. IFP Advisors Inc boosted its holdings in shares of Shake Shack by 43.0% during the second quarter. IFP Advisors Inc now owns 924 shares of the company's stock worth $52,000 after purchasing an additional 278 shares during the period. Gamco Investors INC. ET AL grew its position in Shake Shack by 6.7% during the first quarter. Gamco Investors INC. ET AL now owns 6,743 shares of the company's stock valued at $597,000 after purchasing an additional 426 shares in the last quarter. Finally, GAMMA Investing LLC grew its position in Shake Shack by 50.5% during the third quarter. GAMMA Investing LLC now owns 1,437 shares of the company's stock valued at $84,000 after purchasing an additional 482 shares in the last quarter. Hedge funds and other institutional investors own 86.07% of the company's stock.

Shake Shack Price Performance

Shares of NYSE SHAK traded up $0.78 during trading on Tuesday, hitting $70.12. The company had a trading volume of 354,351 shares, compared to its average volume of 1,756,319. The company has a market cap 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 has a 52 week low of $51.60 and a 52 week high of $107.46. The business's 50-day moving average is $66.24 and its 200 day moving average is $69.26. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.64 and a current ratio of 1.67.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.12. The business had revenue of $417.62 million during the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%. The company's revenue was up 17.2% compared to the same quarter last year. During the same period last year, the company posted $0.44 EPS. Equities research analysts predict that Shake Shack will post 1.13 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on SHAK. Robert W. Baird raised Shake Shack to a "hold" rating in a research note on Monday, August 24th. Zacks Research raised Shake Shack from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 5th. TD Cowen restated a "hold" rating on shares of Shake Shack in a report on Wednesday, August 5th. Piper Sandler decreased their target price on Shake Shack from $79.00 to $66.00 and set a "neutral" rating for the company in a research note on Tuesday, July 14th. Finally, Weiss Ratings raised Shake Shack from a "sell (d+)" rating to a "hold (c-)" rating in a report on Wednesday, September 9th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat, Shake Shack presently has a consensus rating of "Moderate Buy" and an average 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.

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