Shake Shack Sees Unusually High Options Volume (NYSE:SHAK)

Shake Shack, Inc. (NYSE:SHAK) was the target of some unusual options trading activity on Monday. Investors acquired 7,362 call options on the company. This represents an increase of 98% compared to the average daily volume of 3,719 call options.

Insider Buying and Selling at Shake Shack

In related news, Director Josh Silverman acquired 8,290 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was purchased at an average price of $60.38 per share, with a total value of $500,550.20. Following the transaction, the director owned 8,290 shares of the company’s stock, valued at approximately $500,550.20. This trade represents a ? increase in their position. The acquisition was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Daniel Harris Meyer bought 32,258 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was bought at an average price of $61.88 per share, with a total value of $1,996,125.04. Following the acquisition, the director directly owned 378,670 shares in the company, valued at $23,432,099.60. The trade was a 9.31% increase in their position. The SEC filing for this purchase provides additional information. Over the last quarter, insiders acquired 50,616 shares of company stock valued at $3,109,782. 8.32% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors and hedge funds have recently modified their holdings of the company. Intech Investment Management LLC boosted its position in shares of 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 grew its stake in Shake Shack by 407.8% during the 3rd quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company’s stock worth $5,334,000 after buying an additional 45,762 shares during the last quarter. Madison Asset Management LLC increased its position in Shake Shack by 37.3% during 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 during the period. Jefferies Financial Group Inc. purchased a new stake in Shake Shack in the fourth quarter valued at approximately $2,898,000. Finally, 12 West Capital Management LP lifted its stake in Shake Shack by 13.6% in 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 last quarter. Institutional investors and hedge funds own 86.07% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have recently commented on SHAK. Piper Sandler lowered their price target on Shake Shack from $79.00 to $66.00 and set a “neutral” rating for the company in a research report on Tuesday. Oppenheimer set a $82.00 price objective on Shake Shack and gave the company an “outperform” rating in a report on Tuesday, June 2nd. Barclays decreased their target price on Shake Shack from $118.00 to $96.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. BNP Paribas Exane lowered their target price on Shake Shack from $100.00 to $77.00 and set an “outperform” rating for the company in a report on Thursday, June 4th. Finally, Gordon Haskett dropped their target price on Shake Shack from $90.00 to $70.00 and set a “buy” rating for the company in a research report on Wednesday, June 3rd. Fifteen research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, Shake Shack has a consensus rating of “Hold” and a consensus price target of $89.39.

Shake Shack News Roundup

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

• Positive Sentiment: Shake Shack is generating attention around its new West Coast-inspired menu, including the West Coast burger, which could help traffic and near-term sales by attracting customers looking for a limited-time offering. Shake Shack Launches West Coast–Inspired Menu
• Positive Sentiment: Investor interest also looks supported by unusual call-option activity, suggesting some traders were positioning for a move higher.
• Neutral Sentiment: Several consumer articles highlighting early reactions to the West Coast burger may help brand visibility, but they are unlikely to materially change the stock’s fundamentals on their own. I tried Shake Shack’s new West Coast burger as a die-hard In-N-Out fan, I was surprised Shake Shack’s West Coast Menu Left Me California Dreamin’
• Neutral Sentiment: A new Cranberry Shake Shack location has set an opening date, which is constructive for expansion but not a major market-moving catalyst by itself. New Cranberry Shake Shack sets opening date
• Negative Sentiment: Piper Sandler lowered its price target on Shake Shack from $79 to $66 and kept a neutral rating, which can pressure sentiment even though the new target still implies upside from current levels. Benzinga / The Fly note on Piper Sandler price target cut
• Negative Sentiment: Recent Seeking Alpha commentary was split, with one piece arguing the stock is attractive on a deeper dip and another saying the premium valuation is not justified if the outlook weakens, adding to uncertainty around SHAK’s valuation. Shake Shack: A Buy On A Deeper Dip Shake Shack: The Premium Is Not Justified, If You Can’t Rely On The Outlook

Shake Shack Stock Down 3.5%

Shares of Shake Shack stock opened at $59.98 on Wednesday. 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 has a 52-week low of $51.60 and a 52-week high of $142.20. The company has a market capitalization of $2.57 billion, a P/E ratio of 61.21, a P/E/G ratio of 3.42 and a beta of 1.63. The company has a 50 day moving average of $59.86 and a 200 day moving average of $81.34.

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.