Traders Purchase High Volume of Call Options on Shake Shack (NYSE:SHAK)

Shake Shack, Inc. (NYSE:SHAK) saw unusually large options trading activity on Monday. Stock traders purchased 7,362 call options on the company. This is an increase of approximately 98% compared to the average volume of 3,719 call options.

Insider Buying and Selling

In other news, CEO Robert Lynch bought 5,000 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average cost of $60.39 per share, with a total value of $301,950.00. Following the transaction, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at approximately $4,701,059.55. This represents a 6.86% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Sumaiya Balbale acquired 4,068 shares of Shake Shack stock in a transaction on Friday, May 15th. The stock was purchased 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 approximately $823,457.94. This trade represents a 43.56% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired a total of 50,616 shares of company stock worth $3,109,782 over the last 90 days. 8.32% of the stock is owned by company insiders.

Hedge Funds Weigh In On Shake Shack

Several institutional investors and hedge funds have recently bought and sold shares of the company. Intech Investment Management LLC boosted its holdings in Shake Shack by 40.1% in the 4th quarter. Intech Investment Management LLC now owns 77,916 shares of the company’s stock valued at $6,324,000 after purchasing an additional 22,287 shares during the period. Divisadero Street Capital Management LP increased its holdings in shares of Shake Shack by 407.8% in the third quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company’s stock worth $5,334,000 after purchasing an additional 45,762 shares during the period. Jefferies Financial Group Inc. purchased a new stake in shares of Shake Shack in the fourth quarter worth $2,898,000. Madison Asset Management LLC raised its position in shares of Shake Shack by 37.3% in the fourth quarter. Madison Asset Management LLC now owns 58,404 shares of the company’s stock worth $4,741,000 after buying an additional 15,852 shares in the last quarter. Finally, 12 West Capital Management LP boosted its stake in Shake Shack by 13.6% during the third quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company’s stock valued at $164,154,000 after buying an additional 210,000 shares during the period. 86.07% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts recently weighed in on SHAK shares. Wells Fargo & Company lowered their target price on shares of Shake Shack from $80.00 to $65.00 and set an “equal weight” rating on the stock in a report on Wednesday, June 3rd. The Goldman Sachs Group reissued a “buy” rating on shares of Shake Shack in a research note on Friday, May 8th. Wall Street Zen downgraded Shake Shack from a “hold” rating to a “strong sell” rating in a report on Saturday, May 16th. Robert W. Baird dropped their price objective on Shake Shack from $76.00 to $60.00 and set a “neutral” rating on the stock in a research note on Thursday, June 4th. Finally, Raymond James Financial lowered shares of Shake Shack from a “strong-buy” rating to an “outperform” rating and reduced their target price for the stock from $125.00 to $85.00 in a research note on Wednesday, June 3rd. Fifteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $89.96.

Shake Shack Stock Performance

Shares of Shake Shack stock traded up $2.38 during trading hours on Monday, hitting $60.98. 1,138,535 shares of the company’s stock traded hands, compared to its average volume of 1,853,241. The stock has a market capitalization of $2.61 billion, a price-to-earnings ratio of 62.32, a PEG ratio of 2.63 and a beta of 1.63. 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 has a 12-month low of $51.60 and a 12-month high of $142.20. The company has a fifty day simple moving average of $61.40 and a 200-day simple moving average of $81.67.

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.