NEW YORK—Katherine Irene Fogertey, the Chief Financial Officer of Shake Shack Inc . (NYSE:SHAK), sold shares of the company's Class A common stock totaling $85,541, according to a recent filing with the Securities and Exchange Commission. The transactions, executed on November 6, 2024, were carried out at prices ranging from $131.6881 to $134.332 per share.
The sales were conducted under a prearranged trading plan, as noted in the filing. Following these transactions, Fogertey holds 31,359 shares of Shake Shack stock. The transactions were part of multiple trades, reflecting weighted average sales prices.
Shake Shack, known for its premium burgers and shakes, continues to be a significant player in the retail-eating and drinking places sector. Investors often monitor insider transactions like these for potential insights into the company's future performance.
In other recent news, Shake Shack has been the subject of multiple analyst updates following robust third-quarter results. Stifel has raised its price target for Shake Shack to $115, maintaining a hold rating. The firm's revised projections reflect an improvement in restaurant operating margin and a 4.5% increase in sales. TD Cowen, Truist Securities, Baird, and Deutsche Bank (ETR:DBKGn) also raised their price targets for Shake Shack, based on strong same-store sales, operational improvements, and CEO Rob Lynch's growth initiatives.
Shake Shack reported a 14.7% year-over-year increase in total revenue, reaching $316.9 million. The company's adjusted EBITDA saw a significant rise of 28%, reaching $45.8 million. Shake Shack also demonstrated robust expansion plans, opening 17 new locations and contributing to an overall total of over 550 Shacks.
Looking ahead, the company projects total revenue for Q4 2024 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. These are all recent developments that investors should take note of.
InvestingPro Insights
Shake Shack's recent insider transaction takes place against a backdrop of strong market performance and robust financial metrics. According to InvestingPro data, the company's stock has shown impressive momentum, with a 134.38% price total return over the past year and a 77.9% return year-to-date. This aligns with an InvestingPro Tip indicating that Shake Shack has delivered a high return over the last year.
The company's revenue growth remains solid, with a 16.38% increase in the last twelve months as of Q3 2024, reaching $1.21 billion. This growth trajectory is supported by another InvestingPro Tip, which notes that 12 analysts have revised their earnings upwards for the upcoming period, suggesting positive expectations for Shake Shack's future performance.
However, investors should be aware that Shake Shack is trading at elevated valuation multiples. The company's P/E ratio (adjusted) stands at 129.91, which is considerably high. This is reflected in an InvestingPro Tip cautioning that the stock is trading at a high earnings multiple.
For those interested in a more comprehensive analysis, InvestingPro offers 18 additional tips for Shake Shack, providing a deeper understanding of the company's financial health and market position.
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