Unusual Institutional Investor Activity At Shake Shack – Who's Buying?

Shares of Shake Shack Inc (NYSE: SHAK) fell 4.36 percent on Wednesday, after the company announced the pricing of a secondary offering of 4 million shares of its Class A Common Stock at $60.00 per share.

However, what was interesting on Wednesday was the institutional investors activity it witnessed. Nine investment firms, managers or proxies filed Form 13Ds with the SEC, disclosing increased stakes in the company.

• Daniel H. Meyer and his affiliated firms (the Daniel H. Meyer Investment Trust, Gramercy Tavern Corp., Union Square Cafe Corp and Union Square Hospitality Group LLC) disclosed ownership of 6,404,462 shares of Class A Common Stock, representing 42.1 percent of its class, but only 17.7 percent of the outstanding voting stock.
• Granite Point Capital declared beneficial ownership of 315,867 Class A shares, representing 7.4 percent of the voting stock.
• Jeffrey S. Flug, former President of Union Square Hospitality Group, said he now owns 1,617,396 shares, which represent 4.5 percent beneficial ownership of the voting stock.
• Alliance Consumer Growth’s ACG Shack LLC acknowledged holding 1,868,590 Class A shares, or 5.2 percent of the outstanding voting power.
• Amy Weiss-Meyer Qualified Minor's Trust, representing William Harris Investors, disclosed beneficial ownership of 14,988 shares with no voting power – accounting for 0.1 percent of the total Class A outstanding stock.
• Charles Meyer Qualified Minor's Trust, representing William Harris Investors, owns another 29,676 shares, or 0.1 percent of the voting power.
• Fiona Angelini, c/o Shake Shack, declared holding 73,092 shares, representing 0.2 percent of the voting stock.
• Ashley E. Campbell, also representing Shake Shack, beneficially owns another 31,935 shares, or 0.1 percent of the voting power.
• Richard D. Coraine, c/o Shake Shack as well, beneficially owns another 592,147 shares, or 1.6 percent of the voting power.

It should be noted that all of these filings were Schedule 13D forms, meaning all positions have an activist nature.