Shake Shack (NYSE:SHAK) Shares Down 7.6% – Here’s Why

Shake Shack Inc. (NYSE:SHAK)’s share price was down 7.6% during mid-day trading on Friday . The stock traded as low as $114.68 and last traded at $114.23. Approximately 1,015,010 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 1,394,495 shares. The stock had previously closed at $123.61.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on SHAK shares. UBS Group increased their price target on Shake Shack from $130.00 to $140.00 and gave the stock a “neutral” rating in a report on Tuesday, January 7th. Gordon Haskett upgraded Shake Shack from a “hold” rating to a “buy” rating and set a $154.00 price target for the company in a report on Wednesday, January 8th. Oppenheimer increased their price target on Shake Shack from $145.00 to $155.00 and gave the stock an “outperform” rating in a report on Tuesday, January 7th. Wedbush increased their price target on Shake Shack from $115.00 to $125.00 and gave the stock a “neutral” rating in a report on Friday. Finally, TD Securities restated a “buy” rating and issued a $140.00 price target on shares of Shake Shack in a report on Friday. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have issued a buy rating to the stock. According to MarketBeat.com, Shake Shack presently has a consensus rating of “Hold” and an average target price of $125.50.

Shake Shack Stock Down 11.9 %

The firm has a 50-day moving average of $121.79 and a 200 day moving average of $116.39. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.97 and a quick ratio of 1.98. The stock has a market capitalization of $4.63 billion, a price-to-earnings ratio of 473.73 and a beta of 1.86.

Shake Shack (NYSE:SHAK) last issued its quarterly earnings results on Thursday, February 20th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.25 by $0.01. Shake Shack had a return on equity of 8.40% and a net margin of 0.81%. The firm had revenue of $328.68 million during the quarter, compared to analysts’ expectations of $329.02 million. As a group, sell-side analysts forecast that Shake Shack Inc. will post 1.26 earnings per share for the current fiscal year.

Insider Activity at Shake Shack

In other news, CFO Katherine Irene Fogertey sold 642 shares of the firm’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $137.51, for a total value of $88,281.42. Following the completion of the sale, the chief financial officer now directly owns 30,717 shares of the company’s stock, valued at $4,223,894.67. This trade represents a 2.05 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Insiders own 9.73% of the company’s stock.

Institutional Trading of Shake Shack

A number of hedge funds have recently made changes to their positions in the business. Louisiana State Employees Retirement System lifted its position in shares of Shake Shack by 0.5% in the fourth quarter. Louisiana State Employees Retirement System now owns 19,400 shares of the company’s stock valued at $2,518,000 after buying an additional 100 shares during the last quarter. Quadrant Capital Group LLC lifted its position in shares of Shake Shack by 5.6% in the fourth quarter. Quadrant Capital Group LLC now owns 1,870 shares of the company’s stock valued at $243,000 after buying an additional 100 shares during the last quarter. Thrivent Financial for Lutherans lifted its position in shares of Shake Shack by 0.4% in the third quarter. Thrivent Financial for Lutherans now owns 31,398 shares of the company’s stock valued at $3,241,000 after buying an additional 139 shares during the last quarter. Summit Financial LLC lifted its position in shares of Shake Shack by 1.1% in the fourth quarter. Summit Financial LLC now owns 13,083 shares of the company’s stock valued at $1,698,000 after buying an additional 139 shares during the last quarter. Finally, Arizona State Retirement System increased its stake in shares of Shake Shack by 1.7% during the fourth quarter. Arizona State Retirement System now owns 11,024 shares of the company’s stock worth $1,431,000 after purchasing an additional 182 shares during the period. 86.07% of the stock is owned by institutional investors and hedge funds.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.