Insider Buying: Shake Shack (NYSE:SHAK) Director Buys $1,996,125.04 in Stock

Shake Shack, Inc. (NYSE:SHAK) Director Daniel Harris Meyer acquired 32,258 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The shares were 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 $23,432,099.60. The trade was a 9.31% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website.

Shake Shack Stock Performance

Shares of SHAK opened at $63.45 on Thursday. The business’s fifty day moving average price is $88.39 and its 200 day moving average price is $89.23. Shake Shack, Inc. has a 12-month low of $59.49 and a 12-month high of $144.65. The stock has a market capitalization of $2.71 billion, a PE ratio of 64.74, a price-to-earnings-growth ratio of 2.65 and a beta of 1.78. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.00 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.11). Shake Shack had a return on equity of 9.62% and a net margin of 2.76%.The firm had revenue of $366.74 million for the quarter, compared to the consensus estimate of $372.43 million. During the same quarter last year, the business earned $0.14 earnings per share. The business’s revenue for the quarter was up 14.3% compared to the same quarter last year. Equities research analysts forecast that Shake Shack, Inc. will post 1.24 EPS for the current year.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of SHAK. Swedbank AB acquired a new position in shares of Shake Shack during the fourth quarter valued at $84,092,000. Adage Capital Partners GP L.L.C. bought a new position in Shake Shack during the fourth quarter valued at about $40,829,000. Wellington Management Group LLP boosted its stake in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock valued at $242,535,000 after buying an additional 450,406 shares in the last quarter. Marshall Wace LLP boosted its stake in Shake Shack by 285.2% during the third quarter. Marshall Wace LLP now owns 586,999 shares of the company’s stock valued at $54,949,000 after buying an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC bought a new position in Shake Shack during the fourth quarter valued at about $20,455,000. 86.07% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Guggenheim dropped their target price on Shake Shack from $120.00 to $100.00 and set a “buy” rating on the stock in a research report on Monday, May 11th. Mizuho set a $100.00 target price on Shake Shack in a research report on Friday, May 8th. Wolfe Research assumed coverage on Shake Shack in a research report on Monday, March 9th. They issued an “outperform” rating and a $118.00 target price on the stock. BNP Paribas Exane dropped their target price on Shake Shack from $124.00 to $100.00 and set an “outperform” rating on the stock in a research report on Friday, May 8th. Finally, Morgan Stanley reaffirmed an “overweight” rating on shares of Shake Shack in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Shake Shack has an average rating of “Moderate Buy” and an average target price of $107.08.

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.