On October 3, 2024, Katherine Fogertey, the Chief Financial Officer of Shake Shack Inc (SHAK, Financial), sold 642 shares of the company at a price of $104.09 per share. The transaction was documented in a recent SEC Filing. Following this sale, the insider now owns 35,859 shares of Shake Shack Inc.
Shake Shack Inc operates as a modern day “roadside” burger stand known for its delicious burgers, chicken, hot dogs, shakes, frozen custard, beer, wine, and more. With its fresh, simple, high-quality food at a great value, Shake Shack sources premium ingredients from the best ranchers, farmers, bakers, and food purveyors.
Over the past year, Katherine Fogertey has sold a total of 3,216 shares of Shake Shack Inc and has not made any purchases of the stock. This recent sale is part of a broader trend seen within the company, where there have been 20 insider sells and no insider buys over the past year.
Shares of Shake Shack Inc were trading at $104.09 on the day of the sale, giving the company a market cap of approximately $4.399 billion. The price-earnings ratio of the company stands at 177.45, significantly higher than both the industry median of 23.01 and the company's historical median.
According to the GF Value, an intrinsic value estimate used by GuruFocus, Shake Shack Inc is currently significantly overvalued. The GF Value of $84.20 compared to the current price of $104.09 results in a price-to-GF-Value ratio of 1.24.
This valuation assessment suggests caution, as the stock's current price significantly exceeds its estimated intrinsic value based on historical trading multiples, an adjustment factor from GuruFocus, and future business performance estimates from analysts.
Investors and stakeholders in Shake Shack Inc may want to consider these factors and the recent insider selling activity as they manage their investment decisions in the company.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
