Daniel Harris Meyer, a director and ten percent owner at Shake Shack Inc . (NYSE:SHAK), recently sold a significant portion of his holdings in the company. According to a recent regulatory filing, Meyer disposed of 29,000 shares of Class A common stock on November 1, 2024. The shares were sold at prices ranging from $120.184 to $123.9437, totaling approximately $3.65 million.
The transactions were conducted through the Daniel H. Meyer Investment Trust, under a pre-established Rule 10b5-1 trading plan. Following these sales, Meyer retains indirect ownership of 407,646 shares through the trust. Additionally, the DHM 2012 Gift Trust, where Meyer's spouse is a co-trustee, holds 1,305,306 shares.
The sales were executed in multiple trades, as detailed in the footnotes of the filing, which also clarify that Meyer disclaims beneficial ownership of the shares except to the extent of his pecuniary interest.
In other recent news, Shake Shack's financial performance has been the focus of multiple analyst reports. Stifel has raised its price target for Shake Shack to $115, maintaining a hold rating, following encouraging sales growth and operational efficiency. The firm also adjusted its earnings per share estimate for 2025 to $1.25, higher than the market's expectation of $1.13.
TD (TSX:TD) Cowen, expressing confidence in CEO Rob Lynch's growth initiatives, increased the company's price target to $140 while maintaining a buy rating. Similarly, Truist Securities raised its price target to $144, citing strong same-store sales and adjusted EBITDA.
Baird, while maintaining a neutral rating, also increased its price target for Shake Shack to $122, acknowledging strengths in profitability and consistent customer traffic. Deutsche Bank (ETR:DBKGn) maintained a hold rating but raised the price target to $133, highlighting the company's effective marketing and operational improvements.
Shake Shack recently reported a 14.7% year-over-year increase in total revenue, reaching $316.9 million, and opened 17 new locations, contributing to over 550 Shacks. 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.
InvestingPro Insights
As Daniel Harris Meyer reduces his stake in Shake Shack Inc. (NYSE:SHAK), recent data from InvestingPro sheds light on the company's current financial position and market performance. Shake Shack's market capitalization stands at $5.4 billion, reflecting its significant presence in the fast-casual restaurant sector.
The company has shown robust growth, with revenue increasing by 16.38% over the last twelve months to $1.21 billion. This growth trend is further supported by a strong EBITDA growth of 42.46% during the same period, indicating improved operational efficiency.
Investors should note that Shake Shack's stock has delivered an impressive 121.95% return over the past year, significantly outperforming the broader market. This performance aligns with an InvestingPro Tip highlighting the company's high return over the last year. Additionally, the stock is trading near its 52-week high, with its current price at 97.39% of that peak.
However, potential investors should be aware that Shake Shack is trading at elevated valuation multiples. An InvestingPro Tip indicates that the stock is trading at high earnings, EBIT, EBITDA, and revenue multiples. This suggests that the market has high growth expectations for the company, which may already be priced into the stock.
For those considering an investment in Shake Shack, it's worth noting that InvestingPro offers 16 additional tips for SHAK, providing a more comprehensive analysis of the company's financial health and market position. These insights can be valuable for making informed investment decisions in light of recent insider transactions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.