Shake Shack (NYSE:SHAK) Trading Down 7.6% – Here’s What Happened

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 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

SHAK has been the topic of a number of research reports. Oppenheimer boosted their target price on shares of Shake Shack from $145.00 to $155.00 and gave the stock an “outperform” rating in a research note on Tuesday, January 7th. UBS Group increased their target price on Shake Shack from $130.00 to $140.00 and gave the company a “neutral” rating in a research report on Tuesday, January 7th. Wedbush upped their price objective on Shake Shack from $115.00 to $125.00 and gave the company a “neutral” rating in a research note on Friday. Barclays upgraded shares of Shake Shack from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $125.00 to $159.00 in a research report on Tuesday, January 7th. Finally, Stifel Nicolaus decreased their price target on shares of Shake Shack from $128.00 to $110.00 and set a “hold” rating for the company in a research report on Friday, January 17th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $125.50.

Shake Shack Price Performance

The company has a debt-to-equity ratio of 0.51, a current ratio of 2.01 and a quick ratio of 1.98. The business’s fifty day moving average price is $122.24 and its 200-day moving average price is $116.17. The stock has a market capitalization of $4.70 billion, a price-to-earnings ratio of 648.35 and a beta of 1.86.

Shake Shack (NYSE:SHAK) last posted its earnings results on Thursday, February 20th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.25 by $0.01. Shake Shack had a net margin of 0.68% and a return on equity of 6.28%. The firm had revenue of $328.68 million during the quarter, compared to analyst estimates of $329.02 million. On average, research analysts forecast that Shake Shack Inc. will post 0.9 EPS for the current year.

Insider Buying and Selling

In other news, CFO Katherine Irene Fogertey sold 642 shares of the company’s stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $137.51, for a total transaction of $88,281.42. Following the transaction, the chief financial officer now owns 30,717 shares of the company’s stock, valued at $4,223,894.67. This represents a 2.05 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 9.73% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Shake Shack

Several large investors have recently modified their holdings of the business. Creative Planning raised its stake in shares of Shake Shack by 64.2% during the 3rd quarter. Creative Planning now owns 9,763 shares of the company’s stock valued at $1,008,000 after purchasing an additional 3,817 shares during the period. Private Advisor Group LLC bought a new position in shares of Shake Shack in the third quarter valued at approximately $279,000. Mowery & Schoenfeld Wealth Management LLC purchased a new position in Shake Shack during the third quarter valued at approximately $41,000. Assenagon Asset Management S.A. increased its holdings in Shake Shack by 268.0% during the 3rd quarter. Assenagon Asset Management S.A. now owns 104,358 shares of the company’s stock worth $10,771,000 after acquiring an additional 75,997 shares during the period. Finally, Louisiana State Employees Retirement System increased its holdings in Shake Shack by 2.1% during the 3rd quarter. Louisiana State Employees Retirement System now owns 19,300 shares of the company’s stock worth $1,992,000 after acquiring an additional 400 shares during the period. Hedge funds and other institutional investors own 86.07% of the company’s stock.

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.