NEW YORK—Katherine Fogertey, the Chief Financial Officer of Shake Shack Inc . (NYSE:SHAK), recently sold a significant amount of the company's Class A common stock, according to a recent SEC filing. The transactions, executed on November 5, 2024, involved the sale of shares totaling approximately $485,274. The shares were sold at prices ranging from $124.2599 to $127.0906 per share.
Following these transactions, Fogertey holds 32,001 shares directly. The sales were carried out under a Rule 10b5-1 trading plan, which allows company insiders to sell a predetermined number of shares at a set time to avoid any potential claims of insider trading.
In other recent news, Shake Shack has been the focus of various financial services firms following its strong third-quarter performance. Stifel revised its price target on Shake Shack to $115, maintaining a hold rating. The firm's new target reflects Shake Shack's 4.5% increase in sales and an anticipated rise in its restaurant operating margin to 22.0%. Stifel's 2025 earnings per share estimate for Shake Shack is set at $1.25, higher than the Street's expectation of $1.13.
TD Cowen raised Shake Shack's price target to $140, maintaining a buy rating, based on the positive impact of new CEO Rob Lynch's initiatives. Meanwhile, Baird increased its price target for Shake Shack to $122, citing strengths in profitability and sustained customer traffic, while maintaining a neutral rating. Deutsche Bank (ETR:DBKGn) also maintained a hold rating, but raised the price target to $133, highlighting the company's effective marketing and operational improvements.
Truist Securities revised its price target for Shake Shack upward to $144, maintaining a buy rating based on the company's strong same-store sales and adjusted EBITDA. Shake Shack reported a 14.7% year-over-year increase in total revenue, reaching $316.9 million, and a significant rise of 28% in adjusted EBITDA, reaching $45.8 million. The company also announced plans to open approximately 75 Shacks in 2024, with an acceleration to 80-85 in 2025. For Q4 2024, Shake Shack projects total revenue to be between $322.6 million and $327 million, and full-year 2024 revenue is expected to reach approximately $1.25 billion. Adjusted EBITDA for the full year is projected to grow 27% to 29%, reaching between $168 million and $170 million.
InvestingPro Insights
As Shake Shack's CFO sells a portion of her holdings, investors might be curious about the company's current financial standing and market performance. According to InvestingPro data, Shake Shack's market capitalization stands at $5.59 billion, reflecting its significant presence in the fast-casual restaurant sector.
The company's recent performance has been notably strong, with a 130.3% price total return over the past year. This impressive growth is further emphasized by the stock trading near its 52-week high, with the current price at 97.81% of that peak. These metrics align with an InvestingPro Tip indicating that Shake Shack has seen a "significant return over the last week," suggesting ongoing investor confidence.
However, potential investors should note that Shake Shack is trading at a high earnings multiple, with a P/E ratio of 601.59. This valuation metric, coupled with another InvestingPro Tip stating that the stock is "trading at a high revenue valuation multiple," suggests that the market has priced in substantial growth expectations.
For those seeking a more comprehensive analysis, InvestingPro offers 19 additional tips on Shake Shack, providing deeper insights into the company's financial health and market position. These additional tips can help investors make more informed decisions in light of recent insider selling activity.
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