Shake Shack Target of Unusually High Options Trading (NYSE:SHAK)

Key Points

• Shake Shack saw unusually heavy options activity on Monday, with traders buying 7,362 call options, nearly double the average volume of 3,719 calls.
• Insiders were active buyers: Director Jeffrey Flug and Director Daniel Harris Meyer purchased shares, and insiders have bought 50,616 shares worth about $3.11 million over the past three months.
• Analysts are still mixed on the stock, with recent price-target cuts from several firms and an overall consensus rating of "Hold" with an average target price of $89.96.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report) saw unusually large options trading on Monday. Stock traders bought 7,362 call options on the company. This is an increase of approximately 98% compared to the average volume of 3,719 call options.

Insider Buying and Selling at Shake Shack

In related news, Director Jeffrey Flug acquired 1,000 shares of the company's stock in a transaction that occurred on Friday, May 15th. The shares were acquired at an average cost of $61.30 per share, for a total transaction of $61,300.00. Following the completion of the acquisition, the director directly owned 5,470 shares in the company, valued at approximately $335,311. The trade was a 22.37% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Daniel Harris Meyer bought 32,258 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The stock was bought at an average cost of $61.88 per share, with a total value of $1,996,125.04. Following the completion of the purchase, the director owned 378,670 shares in the company, valued at approximately $23,432,099.60. This trade represents a 9.31% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders have purchased a total of 50,616 shares of company stock worth $3,109,782 over the last three months. Company insiders own 8.32% of the company's stock.

Institutional Investors Weigh In On Shake Shack

A number of institutional investors have recently modified their holdings of the business. Swedbank AB acquired a new position in Shake Shack during the 4th quarter worth approximately $84,092,000. Adage Capital Partners GP L.L.C. bought a new stake in shares of Shake Shack in the 4th quarter valued at $40,829,000. Wellington Management Group LLP grew its holdings in Shake Shack by 21.0% during the 3rd quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock worth $242,535,000 after acquiring an additional 450,406 shares during the period. Marshall Wace LLP raised its position in shares of Shake Shack by 285.2% in the 3rd quarter. Marshall Wace LLP now owns 586,999 shares of the company's stock worth $54,949,000 after acquiring an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC bought a new stake in Shake Shack in the fourth quarter worth approximately $20,455,000. Institutional investors own 86.07% of the company's stock.

Analysts Set New Price Targets

A number of research analysts recently issued reports on the company. Guggenheim decreased their price objective on Shake Shack from $120.00 to $100.00 and set a "buy" rating for the company in a report on Monday, May 11th. Robert W. Baird reduced their price target on Shake Shack from $76.00 to $60.00 and set a "neutral" rating for the company in a research report on Thursday, June 4th. Jefferies Financial Group reaffirmed a "hold" rating and set a $66.00 price target on shares of Shake Shack in a research note on Tuesday, June 2nd. TD Cowen reiterated a "hold" rating and issued a $70.00 price objective on shares of Shake Shack in a report on Wednesday, June 3rd. Finally, Barclays reduced their target price on shares of Shake Shack from $118.00 to $96.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Fifteen investment analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Shake Shack presently has an average rating of "Hold" and an average target price of $89.96.

Shake Shack Stock Up 4.1%

SHAK traded up $2.38 during trading on Monday, reaching $60.98. 1,138,535 shares of the stock were exchanged, compared to its average volume of 1,853,241. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69. The stock's 50 day moving average price is $61.40 and its two-hundred day moving average price is $81.67. Shake Shack has a twelve month low of $51.60 and a twelve month high of $142.20. The stock has a market cap of $2.61 billion, a P/E ratio of 62.32, a price-to-earnings-growth ratio of 2.63 and a beta of 1.63.

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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