Shake Shack Inc . (NYSE:SHAK) Director Jeffrey Flug has sold a portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. The transaction, which took place on April 4, 2024, involved the sale of 304 shares of Class A Common Stock at a weighted average price of $103.0084, totaling approximately $31,314.
The sale was conducted under a pre-arranged trading plan, known as a Rule 10b5-1 plan, which Mr. Flug had entered into on May 18, 2023. This type of plan allows company insiders to sell shares at predetermined times to avoid accusations of trading on nonpublic information.
Investors might note that the executed trades occurred at varying prices, ranging from $103.00 to $103.02, with the reported average price reflecting the weighted average sales price. Following the sale, Mr. Flug's remaining stake in Shake Shack Inc. consists of 3,754 shares of the Class A Common Stock.
Shake Shack Inc., headquartered in New York, operates as a modern-day "roadside" burger stand known for its delicious burgers, hot dogs, frozen custard, shakes, beer, wine, and more.
The transaction details, including the number of shares sold and the specific prices, are available upon request from the SEC, Shake Shack Inc., or a security holder of the issuer. As per standard procedure, the SEC filing was signed by an attorney-in-fact for Mr. Flug, indicating the legal representation in the filing process.
InvestingPro Insights
In the light of recent insider trading at Shake Shack Inc. (NYSE:SHAK), investors may be curious about the company's current financial standing and market performance. According to InvestingPro data, Shake Shack has a market capitalization of approximately $4.34 billion and is trading at a high earnings multiple, with a P/E ratio of 199.75. This is adjusted to 156.64 when considering the last twelve months as of Q4 2023. The company's Price / Book ratio during the same period stands at 9.78, indicating a premium valuation compared to book value.
Shake Shack's revenue growth has been robust, with a 20.77% increase over the last twelve months as of Q4 2023. Despite the company's impressive top-line growth, the Operating Income Margin remains relatively thin at 1.13%. Investors may also be interested to know that Shake Shack's stock price movements have been quite volatile, but the company has experienced a strong return over the last year, with an 83.57% price total return.
For those looking deeper into the company's financial health, InvestingPro Tips highlight that Shake Shack's liquid assets exceed short-term obligations, and the company operates with a moderate level of debt. These factors may provide some reassurance regarding the company's ability to meet its short-term financial commitments. Additionally, 16 analysts have revised their earnings upwards for the upcoming period, which could signal positive sentiment about the company's future performance.
For more detailed analysis and additional tips, including metrics such as EBITDA growth and analyst predictions on profitability, investors can explore InvestingPro. With 14 more InvestingPro Tips available, subscribers can gain a comprehensive understanding of Shake Shack's financial landscape. To access these insights, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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