Jeffrey Flug Acquires 1,000 Shares of Shake Shack (NYSE:SHAK) Stock

Shake Shack, Inc. (NYSE:SHAK) Director Jeffrey Flug bought 1,000 shares of the stock in a transaction dated Friday, May 15th. The shares were bought at an average cost of $61.30 per share, with a total value of $61,300.00. Following the completion of the purchase, the director directly owned 5,470 shares of the company’s stock, valued at approximately $335,311. This trade represents a 22.37% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link.

Shake Shack Trading Up 7.3%

SHAK stock opened at $64.08 on Wednesday. Shake Shack, Inc. has a 12 month low of $59.49 and a 12 month high of $144.65. The firm’s 50-day moving average is $89.03 and its 200 day moving average is $89.42. The company has a market capitalization of $2.74 billion, a PE ratio of 65.38, a P/E/G ratio of 2.47 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 released 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). The company had revenue of $366.74 million during the quarter, compared to analysts’ expectations of $372.43 million. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. Shake Shack’s quarterly revenue was up 14.3% on a year-over-year basis. During the same period last year, the firm earned $0.14 earnings per share. On average, research analysts anticipate that Shake Shack, Inc. will post 1.24 EPS for the current year.

Hedge Funds Weigh In On Shake Shack

Hedge funds and other institutional investors have recently modified their holdings of the stock. Geneos Wealth Management Inc. acquired a new stake in Shake Shack during the 1st quarter valued at approximately $26,000. Hilton Head Capital Partners LLC purchased a new position in shares of Shake Shack during the fourth quarter worth $25,000. Assetmark Inc. raised 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 worth $30,000 after purchasing an additional 302 shares during the last quarter. UMB Bank n.a. lifted its position in 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 purchasing an additional 116 shares during the period. Finally, Advisory Services Network LLC acquired a new position in Shake Shack during the third quarter valued at $38,000. 86.07% of the stock is owned by hedge funds and other institutional investors.

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

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on SHAK shares. BNP Paribas Exane lowered their target price on Shake Shack from $124.00 to $100.00 and set an “outperform” rating for the company in a report on Friday, May 8th. The Goldman Sachs Group restated a “buy” rating on shares of Shake Shack in a research note on Friday, May 8th. TD Cowen lowered their price objective on shares of Shake Shack from $105.00 to $76.00 and set a “hold” rating for the company in a research note on Thursday, May 7th. Wall Street Zen cut shares of Shake Shack from a “hold” rating to a “strong sell” rating in a report on Saturday. Finally, Zacks Research raised shares of Shake Shack from a “strong sell” rating to a “hold” rating in a research report on Monday, March 9th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target 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.