Sumaiya Balbale Acquires 4,068 Shares of Shake Shack (NYSE:SHAK) Stock

Shake Shack, Inc. (NYSE:SHAK) Director Sumaiya Balbale acquired 4,068 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average cost of $61.42 per share, with a total value of $249,856.56. Following the purchase, the director directly owned 13,407 shares of the company’s stock, valued at $823,457.94. This represents a 43.56% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this hyperlink.

Shake Shack Stock Performance

Shares of NYSE:SHAK opened at $64.08 on Wednesday. The firm has a 50 day moving average of $89.03 and a 200 day moving average of $89.42. 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, Inc. has a 52 week low of $59.49 and a 52 week high of $144.65. The company has a market capitalization of $2.74 billion, a price-to-earnings ratio of 65.38, a price-to-earnings-growth ratio of 2.47 and a beta of 1.78.

Shake Shack (NYSE:SHAK) last released its quarterly earnings results 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 during the quarter, compared to analysts’ expectations of $372.43 million. During the same period in the prior year, the firm posted $0.14 earnings per share. Shake Shack’s revenue for the quarter was up 14.3% compared to the same quarter last year. On average, sell-side analysts predict that Shake Shack, Inc. will post 1.24 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on SHAK. Raymond James Financial set a $140.00 price target on shares of Shake Shack in a report on Wednesday, January 21st. Mizuho set a $100.00 price target on shares of Shake Shack in a report on Friday, May 8th. Wolfe Research began coverage on shares of Shake Shack in a report on Monday, March 9th. They issued an “outperform” rating and a $118.00 price target on the stock. TD Cowen cut their price target on shares of Shake Shack from $105.00 to $76.00 and set a “hold” rating on the stock in a report on Thursday, May 7th. Finally, Guggenheim cut their price target on shares of Shake Shack from $120.00 to $100.00 and set a “buy” rating on the stock in a report on Monday, May 11th. 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 issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $107.08.

Key Stories Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Multiple Shake Shack insiders bought shares, including CEO Robert Lynch, directors Daniel Harris Meyer, Sumaiya Balbale, Jeffrey Flug, and Josh Silverman. Large insider purchases can signal confidence that management believes the stock is undervalued. SEC filing for Robert Lynch purchase
• Positive Sentiment: Director Daniel Harris Meyer made a particularly large purchase of 32,258 shares, reinforcing the view that key insiders see value after the post-earnings selloff. SEC filing for Daniel Harris Meyer purchase
• Neutral Sentiment: Shake Shack’s latest earnings missed expectations, with EPS of $0.00 versus $0.11 expected and revenue of $366.7 million versus $372.4 million estimated. That miss remains a major reason the stock has been under pressure. Shake Shack Stock Gets Shaken After Earnings Miss
• Neutral Sentiment: Analysts still have a mixed-but-notable outlook: consensus remains “Moderate Buy,” but some firms have cut price targets after the earnings report, reflecting uncertainty about near-term growth.
• Negative Sentiment: Shake Shack is facing multiple law-firm investigations over possible securities-law violations and alleged misleading statements, which can weigh on investor confidence and create headline risk. Kessler Topaz Meltzer & Check investigation alert

Institutional Investors Weigh In On Shake Shack

Large investors have recently made changes to their positions in the stock. Geneos Wealth Management Inc. purchased a new stake in shares of Shake Shack during the first quarter valued at $26,000. Hilton Head Capital Partners LLC purchased a new stake in shares of Shake Shack during the fourth quarter valued at $25,000. Assetmark Inc. grew its holdings in shares of 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 buying an additional 302 shares during the last quarter. UMB Bank n.a. grew its holdings in shares of Shake Shack by 42.2% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $32,000 after buying an additional 116 shares during the last quarter. Finally, Advisory Services Network LLC purchased a new stake in shares of Shake Shack during the third quarter valued at $38,000. 86.07% of the stock is 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.