Shake Shack (NYSE:SHAK) Shares Down 7.3% – Should You Sell?
by Tristan Rich · The Markets DailyShake Shack, Inc. (NYSE:SHAK – Get Free Report)’s share price fell 7.3% during trading on Tuesday . The company traded as low as $59.27 and last traded at $58.9040. Approximately 600,484 shares changed hands during mid-day trading, a decline of 66% from the average session volume of 1,782,226 shares. The stock had previously closed at $63.51.
Analyst Upgrades and Downgrades
SHAK has been the subject of several research analyst reports. UBS Group reduced their price target on shares of Shake Shack from $79.00 to $68.00 and set a “neutral” rating for the company in a report on Monday, August 3rd. Zacks Research upgraded shares of Shake Shack from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 5th. Robert W. Baird raised Shake Shack to a “hold” rating in a report on Monday, August 24th. Raymond James Financial cut Shake Shack from a “strong-buy” rating to an “outperform” rating and reduced their target price for the company from $125.00 to $85.00 in a report on Wednesday, June 3rd. Finally, Morgan Stanley set a $74.00 price objective on Shake Shack in a research note on Thursday, August 6th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $89.71.
Read Our Latest Analysis on Shake Shack
Shake Shack Price Performance
The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64. The firm has a market cap of $2.50 billion, a PE ratio of 62.18, a P/E/G ratio of 7.03 and a beta of 1.66. The business’s fifty day moving average is $65.87 and its 200-day moving average is $73.81.
Shake Shack (NYSE:SHAK – Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.31 by $0.12. The company had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The company’s quarterly revenue was up 17.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.44 earnings per share. On average, research analysts predict that Shake Shack, Inc. will post 1.12 earnings per share for the current fiscal year.
Institutional Trading of Shake Shack
A number of hedge funds have recently bought and sold shares of the company. Hilton Head Capital Partners LLC grew its holdings in Shake Shack by 65.0% in the 1st quarter. Hilton Head Capital Partners LLC now owns 513 shares of the company’s stock worth $45,000 after acquiring an additional 202 shares during the last quarter. IFP Advisors Inc increased its position in shares of Shake Shack by 6,140.0% during the fourth quarter. IFP Advisors Inc now owns 624 shares of the company’s stock valued at $51,000 after acquiring an additional 614 shares in the last quarter. Murphy & Mullick Capital Management Corp grew its stake in shares of Shake Shack by 42.5% in the first quarter. Murphy & Mullick Capital Management Corp now owns 738 shares of the company’s stock worth $65,000 after acquiring an additional 220 shares during the period. Hantz Financial Services Inc. lifted its holdings in Shake Shack by 280.9% in the fourth quarter. Hantz Financial Services Inc. now owns 838 shares of the company’s stock valued at $68,000 after acquiring an additional 618 shares during the period. Finally, Integrated Wealth Concepts LLC bought a new position in Shake Shack in the second quarter worth approximately $47,000. Institutional investors own 86.07% of the company’s stock.
About Shake Shack
Shake Shack Inc (NYSE: SHAK) operates a global chain of fast-casual restaurants known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, shakes, and other beverages. Its menu also includes beer and wine at select locations, with an emphasis on premium ingredients and hospitality-focused service.
The company traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 as part of a park revitalization project. The first permanent Shake Shack restaurant opened in the park in 2004.