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

Shake Shack Inc. (NYSE:SHAK)’s stock price gapped up prior to trading 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 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.20 by $0.05. Shake Shack had a net margin of 0.68% and a return on equity of 6.28%. The company had revenue of $316.92 million during the quarter, compared to analysts’ expectations of $316.03 million. During the same period last year, the company posted $0.17 earnings per share. The firm’s quarterly revenue was up 14.7% compared to the same quarter last year.

Analyst Ratings Changes

SHAK has been the subject of a number of research analyst reports. Truist Financial reaffirmed a “buy” rating and issued a $127.00 target price on shares of Shake Shack in a report on Wednesday, August 28th. Piper Sandler lowered shares of Shake Shack from an “overweight” rating to a “neutral” rating and lowered their price target for the company from $121.00 to $114.00 in a research report on Monday, August 19th. Morgan Stanley lowered their price target on shares of Shake Shack from $108.00 to $100.00 and set an “equal weight” rating on the stock in a research report on Tuesday, July 16th. The Goldman Sachs Group increased their price target on shares of Shake Shack from $110.00 to $125.00 and gave the company a “buy” rating in a research report on Friday, August 2nd. Finally, Oppenheimer increased their price target on shares of Shake Shack from $122.00 to $135.00 and gave the company an “outperform” rating in a research report on Monday. Two analysts have rated the stock with a sell rating, ten have given a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Shake Shack currently has a consensus rating of “Hold” and a consensus target price of $109.06.

Insider Activity

In other news, Director Jeffrey Flug sold 304 shares of the firm’s stock in a transaction on Monday, August 5th. The shares were sold at an average price of $90.39, for a total value of $27,478.56. Following the transaction, the director now owns 3,347 shares of the company’s stock, valued at approximately $302,535.33. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other news, Director Daniel Harris Meyer sold 10,000 shares of the firm’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 transaction, the director now owns 460,337 shares of the company’s stock, valued at approximately $50,673,896.96. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Jeffrey Flug sold 304 shares of Shake Shack stock in a transaction on Monday, August 5th. The stock was sold at an average price of $90.39, for a total transaction of $27,478.56. Following the sale, the director now directly owns 3,347 shares in the company, valued at $302,535.33. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 21,367 shares of company stock valued at $2,337,213. Company insiders own 9.73% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Principal Financial Group Inc. increased its stake in Shake Shack by 1.1% during the 3rd quarter. Principal Financial Group Inc. now owns 189,229 shares of the company’s stock worth $19,530,000 after buying an additional 2,043 shares during the period. Radnor Capital Management LLC purchased a new stake in Shake Shack during the 3rd quarter worth $320,000. Amalgamated Bank increased its stake in Shake Shack by 1.8% during the 3rd quarter. Amalgamated Bank now owns 11,721 shares of the company’s stock worth $1,210,000 after buying an additional 211 shares during the period. QRG Capital Management Inc. increased its stake in Shake Shack by 14.9% during the 3rd quarter. QRG Capital Management Inc. now owns 3,997 shares of the company’s stock worth $413,000 after buying an additional 519 shares during the period. Finally, New York State Teachers Retirement System increased its position in shares of Shake Shack by 1.7% in the 3rd quarter. New York State Teachers Retirement System now owns 39,025 shares of the company’s stock worth $4,028,000 after purchasing an additional 650 shares during the last quarter. Hedge funds and other institutional investors own 86.07% of the company’s stock.

Shake Shack Price Performance

The company’s 50-day moving average price is $105.57 and its two-hundred day moving average price is $98.49. The company has a market cap of $5.17 billion, a P/E ratio of 715.71, a P/E/G ratio of 3.58 and a beta of 1.83. The company has a current ratio of 2.01, a quick ratio of 2.03 and a debt-to-equity ratio of 0.51.

Shake Shack Company Profile

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.