Shake Shack (NYSE:SHAK) Trading Up 11.4% on Strong Earnings

Shake Shack, Inc. (NYSE:SHAK)’s stock price traded up 11.4% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $71.33 and last traded at $73.79. Approximately 2,691,839 shares traded hands during trading, an increase of 45% from the average daily volume of 1,852,831 shares. The stock had previously closed at $66.22.

The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. The firm had revenue of $417.62 million for the quarter, compared to the consensus estimate of $417.18 million. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The business’s revenue was up 17.2% compared to the same quarter last year. During the same period last year, the firm posted $0.44 earnings per share.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Stifel Nicolaus raised Shake Shack from a “hold” rating to a “buy” rating and reduced their target price for the company from $105.00 to $85.00 in a research note on Friday, May 8th. Oppenheimer set a $82.00 price target on shares of Shake Shack and gave the company an “outperform” rating in a report on Tuesday, June 2nd. Gordon Haskett decreased their price objective on shares of Shake Shack from $90.00 to $70.00 and set a “buy” rating for the company in a report on Wednesday, June 3rd. DA Davidson reaffirmed a “buy” rating and issued a $70.00 target price on shares of Shake Shack in a research report on Monday, June 29th. Finally, BTIG Research reaffirmed a “neutral” rating on shares of Shake Shack in a research note on Wednesday, May 20th. Fifteen equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $88.04.

Insider Activity at Shake Shack

In related news, Director Josh Silverman bought 8,290 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were bought at an average price of $60.38 per share, for a total transaction of $500,550.20. Following the completion of the acquisition, the director owned 8,290 shares of the company’s stock, valued at $500,550.20. This trade represents a ∞ increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Jeffrey Flug bought 1,000 shares of the firm’s stock in a transaction on Friday, May 15th. The shares were bought at an average price of $61.30 per share, with a total value of $61,300.00. Following the completion of the purchase, the director owned 5,470 shares in the company, valued at approximately $335,311. The trade was a 22.37% increase in their position. The SEC filing for this purchase provides additional information. Insiders have purchased 50,616 shares of company stock valued at $3,109,782 over the last ninety days. Corporate insiders own 8.32% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Hedge funds have recently modified their holdings of the business. Geneos Wealth Management Inc. purchased a new stake in shares of Shake Shack in the 1st quarter worth $26,000. Hilton Head Capital Partners LLC purchased a new position in Shake Shack during the fourth quarter valued at $25,000. Assetmark Inc. grew its holdings in Shake Shack by 457.6% during the fourth quarter. Assetmark Inc. now owns 368 shares of the company’s stock valued at $30,000 after purchasing an additional 302 shares during the period. UMB Bank n.a. raised its stake in shares of Shake Shack by 42.2% in the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after buying an additional 116 shares during the period. Finally, Advisory Services Network LLC bought a new position in shares of Shake Shack in the third quarter worth about $38,000. Institutional investors own 86.07% of the company’s stock.

Shake Shack Trading Up 11.2%

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 has a market capitalization of $3.15 billion, a PE ratio of 75.16, a PEG ratio of 5.15 and a beta of 1.63. The stock has a 50-day moving average price of $58.15 and a two-hundred day moving average price of $78.42.

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.