Shake Shack (NYSE:SHAK) Shares Gap Up Following Strong Earnings

Shake Shack Inc. (NYSE:SHAK)’s share price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $113.62, but opened at $123.00. Shake Shack shares last traded at $124.61, with a volume of 692,541 shares changing hands.

The company reported $0.25 EPS for the quarter, beating the consensus estimate of $0.20 by $0.05. The firm had revenue of $316.92 million for the quarter, compared to analyst estimates of $316.03 million. Shake Shack had a net margin of 0.68% and a return on equity of 6.28%. The business’s revenue for the quarter was up 14.7% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.17 EPS.

Wall Street Analysts Forecast Growth

SHAK has been the topic of a number of research analyst reports. JPMorgan Chase & Co. reissued an “underweight” rating and issued a $102.00 target price (down previously from $105.00) on shares of Shake Shack in a research report on Tuesday, September 24th. Bank of America boosted their target price on Shake Shack from $104.00 to $116.00 and gave the company a “neutral” rating in a research report on Monday, August 19th. Oppenheimer boosted their target price on Shake Shack from $122.00 to $135.00 and gave the company an “outperform” rating in a research report on Monday. TD Cowen reissued a “buy” rating and issued a $125.00 target price on shares of Shake Shack in a research report on Wednesday, September 18th. Finally, Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $115.00 target price on shares of Shake Shack in a research report on Wednesday, August 28th. Two investment analysts have rated the stock with a sell rating, ten have assigned a hold rating, six have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of “Hold” and an average price target of $109.06.

Insider Buying and Selling

In related news, Director Jeffrey Flug sold 304 shares of the business’s stock in a transaction on Monday, August 5th. The shares were sold at an average price of $90.39, for a total transaction of $27,478.56. Following the completion of the transaction, the director now owns 3,347 shares in the company, valued at approximately $302,535.33. The trade was a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. In other Shake Shack news, Director Daniel Harris Meyer sold 10,000 shares of the company’s stock in a transaction on Friday, October 4th. The shares were sold at an average price of $110.08, for a total value of $1,100,800.00. Following the completion of the transaction, the director now owns 460,337 shares in the company, valued at $50,673,896.96. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Jeffrey Flug sold 304 shares of the company’s stock in a transaction on Monday, August 5th. The shares were sold at an average price of $90.39, for a total transaction of $27,478.56. Following the completion of the transaction, the director now owns 3,347 shares of the company’s stock, valued at $302,535.33. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 21,367 shares of company stock worth $2,337,213. Corporate insiders own 9.73% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Institutional investors and hedge funds have recently made changes to their positions in the business. Hsbc Holdings PLC raised its holdings in shares of Shake Shack by 303.3% in the second quarter. Hsbc Holdings PLC now owns 16,604 shares of the company’s stock valued at $1,460,000 after buying an additional 12,487 shares during the last quarter. Virtu Financial LLC purchased a new stake in shares of Shake Shack in the first quarter valued at about $653,000. Janney Montgomery Scott LLC purchased a new stake in shares of Shake Shack in the first quarter valued at about $853,000. Jennison Associates LLC purchased a new stake in shares of Shake Shack in the first quarter valued at about $16,365,000. Finally, CANADA LIFE ASSURANCE Co raised its holdings in shares of Shake Shack by 20.6% in the first quarter. CANADA LIFE ASSURANCE Co now owns 37,535 shares of the company’s stock valued at $3,903,000 after buying an additional 6,411 shares during the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Shake Shack Stock Down 0.7 %

The business’s fifty day moving average price is $105.57 and its 200 day moving average price is $98.49. The company has a quick ratio of 2.03, a current ratio of 2.01 and a debt-to-equity ratio of 0.51. The firm has a market capitalization of $5.17 billion, a PE ratio of 715.71, a PEG ratio of 3.58 and a beta of 1.83.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.