Shake Shack Inc . (NYSE:SHAK) Chief Financial Officer Katherine Irene Fogertey has sold a total of $66,824 worth of company stock, according to a recent SEC filing. The transactions, which took place on October 2nd and 3rd, involved shares of the company's Class A common stock being sold at prices ranging from $101.585 to $104.8433.
The sales were conducted under a Rule 10b5-1 trading plan, which was established by Fogertey on March 13, 2024. This plan allows corporate insiders to set up a predetermined trading arrangement for selling stocks at a time when they are not in possession of material non-public information.
The specific sales were executed in multiple trades, with the prices reported reflecting the weighted average sales price. The SEC filing indicated that Fogertey is willing to provide full details regarding the number of shares sold and the specific prices upon request.
Following these transactions, the SEC filing showed that Fogertey still owns a substantial number of shares in Shake Shack Inc. The filings provide transparency into the trading activities of the company's executives and are a routine part of disclosure requirements for company insiders.
In other recent news, Shake Shack has reported a substantial increase in total revenue by 16.4%, reaching a record high of $316.5 million in the second quarter, including a 4% rise in Same-Shack sales and a significant 27% growth in adjusted EBITDA. The company has also announced the closure of nine underperforming locations in California, Ohio, and Texas to optimize its portfolio and improve profitability. Despite these closures, Shake Shack's third-quarter and full-year 2024 guidance remain unchanged.
Analysts' views on Shake Shack have varied, with TD Cowen and Goldman Sachs maintaining a Buy rating and a steady price target of $125.00, while Piper Sandler downgraded the stock from Overweight to Neutral, setting a price target of $114.
In terms of innovation, Shake Shack has partnered with Serve Robotics for autonomous food delivery via Uber (NYSE:UBER) Eats in Los Angeles, aligning with Serve's strategy to deploy 2,000 delivery robots across the United States by 2025. These are the recent developments that have been taking place at Shake Shack.
InvestingPro Insights
Shake Shack's recent stock performance and financial metrics provide additional context to CFO Katherine Irene Fogertey's recent stock sales. According to InvestingPro data, Shake Shack's stock has shown remarkable strength, with a 80.43% price total return over the past year and a 21.75% return in the last three months. The stock is currently trading near its 52-week high, with the price at 98.86% of its peak.
These strong returns align with the company's solid financial performance. Shake Shack's revenue grew by 17.96% in the last twelve months, reaching $1.17 billion. The company has also demonstrated improved profitability, with EBITDA growth of 60.69% over the same period.
However, investors should note that Shake Shack is trading at high valuation multiples. The company's P/E ratio stands at 163.26, which is considered elevated. This high valuation is reflected in several InvestingPro Tips, including that the stock is "Trading at a high earnings multiple" and "Trading at a high revenue valuation multiple."
Despite the high valuation, an InvestingPro Tip suggests that Shake Shack is "Trading at a low P/E ratio relative to near-term earnings growth," indicating potential for future value creation. The company's PEG ratio of 0.24 supports this view, suggesting that the stock might be undervalued relative to its growth prospects.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Shake Shack, providing a deeper understanding of the company's financial health and market position.
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