Shake Shack (NYSE:SHAK) Trading Down 6.2% After Analyst Downgrade

Shake Shack, Inc. (NYSE:SHAK)’s share price was down 6.2% during mid-day trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $100.00 to $85.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Shake Shack traded as low as $65.50 and last traded at $65.7810. Approximately 1,651,333 shares traded hands during trading, an increase of 5% from the average daily volume of 1,578,942 shares. The stock had previously closed at $70.14.

SHAK has been the topic of several other research reports. Barclays reduced their price objective on shares of Shake Shack from $118.00 to $96.00 and set an “overweight” rating on the stock in a research report on Friday. Wells Fargo & Company reduced their price objective on shares of Shake Shack from $100.00 to $80.00 and set an “equal weight” rating on the stock in a research report on Friday. Stifel Nicolaus upgraded shares of Shake Shack from a “hold” rating to a “buy” rating and reduced their price objective for the company from $105.00 to $85.00 in a research report on Friday. Morgan Stanley reiterated an “overweight” rating on shares of Shake Shack in a research report on Friday. Finally, Oppenheimer set a $100.00 price objective on shares of Shake Shack in a research report on Friday. One analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $107.92.

Insiders Place Their Bets

In related news, insider Stephanie Ann Sentell sold 258 shares of the business’s stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total value of $26,370.18. Following the sale, the insider owned 15,084 shares in the company, valued at approximately $1,541,735.64. The trade was a 1.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 8.50% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Large investors have recently bought and sold shares of the business. Geneos Wealth Management Inc. bought a new stake in Shake Shack in the first quarter worth $26,000. Hilton Head Capital Partners LLC bought a new stake in Shake Shack in the fourth quarter worth $25,000. Global Retirement Partners LLC increased its position in Shake Shack by 83.7% in the third quarter. Global Retirement Partners LLC now owns 327 shares of the company’s stock worth $31,000 after purchasing an additional 149 shares during the last quarter. Assetmark Inc. increased its position in Shake Shack by 457.6% during the fourth quarter. Assetmark Inc. now owns 368 shares of the company’s stock valued at $30,000 after acquiring an additional 302 shares during the last quarter. Finally, UMB Bank n.a. increased its position in Shake Shack by 42.2% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $32,000 after acquiring an additional 116 shares during the last quarter. Institutional investors own 86.07% of the company’s stock.

Shake Shack Price Performance

The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. The firm has a market cap of $2.81 billion, a P/E ratio of 67.08, a PEG ratio of 2.93 and a beta of 1.78. The stock’s 50-day simple moving average is $94.14 and its two-hundred day simple moving average is $91.01.

Shake Shack (NYSE:SHAK) last posted its quarterly earnings data on Thursday, May 7th. The company reported $0.00 earnings per share for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.11). Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The firm had revenue of $366.74 million for the quarter, compared to the consensus estimate of $372.43 million. During the same quarter last year, the firm earned $0.14 EPS. The company’s revenue was up 14.3% on a year-over-year basis. Equities research analysts forecast that Shake Shack, Inc. will post 1.3 earnings per share for the current fiscal year.

Shake Shack Company Profile

Shake Shack, Inc (NYSE: SHAK) is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 by Danny Meyer’s Union Square Hospitality Group.