Shake Shack (NYSE:SHAK) Shares Up 5.6% Following Insider Buying Activity

Key Points

• Shake Shack shares rose 5.6% after a wave of insider buying, with the stock closing at $63.06 after trading as high as $64.36.
• Director Daniel Harris Meyer, CEO Robert Lynch, and Director Sumaiya Balbale all bought shares on May 15, signaling insider confidence in the company.
• The company’s latest earnings missed expectations, posting $0.00 EPS on revenue of $366.74 million versus analyst estimates of $0.11 EPS and $372.43 million in revenue.

Shares of Shake Shack, Inc. (NYSE:SHAK - Get Free Report) rose 5.6% during trading on Tuesday following insider buying activity. The company traded as high as $64.36 and last traded at $63.06. Approximately 520,988 shares changed hands during trading, a decline of 69% from the average daily volume of 1,673,268 shares. The stock had previously closed at $59.69.

Specifically, Director Daniel Harris Meyer bought 32,258 shares of Shake Shack stock in a transaction dated Friday, May 15th. The stock was purchased at an average price of $61.88 per share, for a total transaction of $1,996,125.04. Following the completion of the purchase, the director directly owned 378,670 shares of the company's stock, valued at approximately $23,432,099.60. This trade represents a 9.31% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Robert Lynch purchased 5,000 shares of the stock in a transaction 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 transaction, the chief executive officer directly owned 77,845 shares of the company's stock, valued at approximately $4,701,059.55. This represents a 6.86% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In other news, Director Sumaiya Balbale bought 4,068 shares of the business's stock in a transaction dated Friday, May 15th. The shares were purchased at an average price of $61.42 per share, for a total transaction of $249,856.56. Following the completion of the acquisition, the director owned 13,407 shares of the company's stock, valued at approximately $823,457.94. This trade represents a 43.56% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the company. BNP Paribas Exane reduced their price objective on Shake Shack from $124.00 to $100.00 and set an "outperform" rating for the company in a research report on Friday, May 8th. The Goldman Sachs Group restated a "buy" rating on shares of Shake Shack in a research report on Friday, May 8th. Oppenheimer set a $100.00 target price on Shake Shack in a research report on Friday, May 8th. Morgan Stanley reaffirmed an "overweight" rating on shares of Shake Shack in a research note on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $117.00 price target on shares of Shake Shack in a research note on Wednesday, April 15th. One research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $107.08.

Shake Shack Price Performance

The stock has a 50 day moving average price of $89.62 and a two-hundred day moving average price of $89.60. The firm has a market cap of $2.72 billion, a PE ratio of 64.87, a price-to-earnings-growth ratio of 2.50 and a beta of 1.78. The company has a quick ratio of 1.66, a current ratio of 1.69 and a debt-to-equity ratio of 0.45.

Shake Shack (NYSE:SHAK - Get Free Report) last issued 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%.Shake Shack's revenue was up 14.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.14 EPS. As a group, equities analysts expect that Shake Shack, Inc. will post 1.24 earnings per share for the current year.

Institutional Trading of Shake Shack

Institutional investors have recently bought and sold shares of the company. Hilton Head Capital Partners LLC acquired a new position in shares of Shake Shack during the 4th quarter valued at $25,000. Geneos Wealth Management Inc. acquired a new stake in shares of Shake Shack in the 1st quarter valued at $26,000. Assetmark Inc. lifted its position in Shake Shack by 457.6% during the 4th quarter. Assetmark Inc. now owns 368 shares of the company's stock worth $30,000 after buying an additional 302 shares in the last quarter. UMB Bank n.a. raised its position in shares of Shake Shack by 42.2% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company's stock valued at $32,000 after acquiring an additional 116 shares during the last quarter. Finally, Murphy & Mullick Capital Management Corp grew its position in shares of Shake Shack by 68.5% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company's stock valued at $38,000 after purchasing an additional 170 shares during the period. 86.07% of the stock is currently owned by hedge funds and other institutional investors.

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.

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