Hsbc Holdings PLC Lowers Stock Holdings in Shake Shack, Inc. $SHAK

Key Points

• Hsbc Holdings PLC reduced its stake in Shake Shack by 47.1%, selling 3,921 shares and owning 4,411 shares worth approximately $385,000 at the end of the last quarter.
• Shake Shack reported a 12.6% increase in revenue year-over-year, totaling $356.47 million, with earnings per share surpassing analyst expectations.
• Analysts' ratings for Shake Shack vary, with one strong buy, six buy, and twelve hold ratings, leading to a consensus rating of "Hold" and an average price target of $133.05.

Hsbc Holdings PLC lowered its holdings in shares of Shake Shack, Inc. (NYSE:SHAK - Free Report) by 47.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,411 shares of the company's stock after selling 3,921 shares during the quarter. Hsbc Holdings PLC's holdings in Shake Shack were worth $385,000 at the end of the most recent reporting period.

Several other institutional investors have also recently made changes to their positions in SHAK. Cambridge Investment Research Advisors Inc. boosted its holdings in shares of Shake Shack by 157.3% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 5,957 shares of the company's stock worth $525,000 after purchasing an additional 3,642 shares during the period. Janus Henderson Group PLC boosted its holdings in Shake Shack by 6.2% during the 4th quarter. Janus Henderson Group PLC now owns 17,064 shares of the company's stock valued at $2,216,000 after acquiring an additional 1,000 shares during the period. Bessemer Group Inc. lifted its holdings in shares of Shake Shack by 60.7% in the 1st quarter. Bessemer Group Inc. now owns 5,874 shares of the company's stock worth $518,000 after buying an additional 2,218 shares during the period. Wealth Enhancement Advisory Services LLC lifted its holdings in shares of Shake Shack by 53.2% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 6,421 shares of the company's stock worth $566,000 after buying an additional 2,229 shares during the period. Finally, GAMMA Investing LLC lifted its holdings in shares of Shake Shack by 13,353.1% in the 1st quarter. GAMMA Investing LLC now owns 99,015 shares of the company's stock worth $8,730,000 after buying an additional 98,279 shares during the period. Hedge funds and other institutional investors own 86.07% of the company's stock.

Insider Buying and Selling at Shake Shack

In other Shake Shack news, Director Daniel Harris Meyer sold 14,200 shares of the firm's stock in a transaction on Wednesday, July 2nd. The stock was sold at an average price of $140.31, for a total transaction of $1,992,402.00. Following the completion of the sale, the director owned 337,984 shares of the company's stock, valued at $47,422,535.04. This trade represents a 4.03% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Katherine Irene Fogertey sold 670 shares of the firm's stock in a transaction on Tuesday, July 8th. The stock was sold at an average price of $140.03, for a total value of $93,820.10. Following the transaction, the chief financial officer owned 32,495 shares of the company's stock, valued at approximately $4,550,274.85. This represents a 2.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 57,211 shares of company stock valued at $7,944,616. 8.50% of the stock is owned by insiders.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. BTIG Research lowered Shake Shack from a "buy" rating to a "neutral" rating in a research report on Monday, June 2nd. Barclays dropped their price target on Shake Shack from $168.00 to $160.00 and set an "overweight" rating on the stock in a research note on Friday, August 1st. Sanford C. Bernstein set a $166.00 price target on Shake Shack and gave the company an "overweight" rating in a research note on Thursday, June 26th. Loop Capital reiterated a "hold" rating and set a $127.00 price target on shares of Shake Shack in a research note on Tuesday, July 8th. Finally, Jefferies Financial Group downgraded Shake Shack from a "hold" rating to an "underperform" rating and upped their target price for the stock from $100.00 to $120.00 in a research note on Thursday, July 17th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Shake Shack has an average rating of "Hold" and an average price target of $133.05.

Shake Shack Price Performance

SHAK stock traded down $1.61 during mid-day trading on Friday, reaching $100.26. 1,857,142 shares of the company's stock were exchanged, compared to its average volume of 1,102,896. The company has a market cap of $4.28 billion, a price-to-earnings ratio of 217.97, a price-to-earnings-growth ratio of 2.33 and a beta of 1.68. The stock's 50 day moving average is $121.53 and its 200 day moving average is $110.33. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.92 and a quick ratio of 1.89. Shake Shack, Inc. has a 12-month low of $72.93 and a 12-month high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.37 by $0.07. Shake Shack had a return on equity of 9.78% and a net margin of 1.50%.The business had revenue of $356.47 million during the quarter, compared to analysts' expectations of $352.56 million. During the same quarter in the prior year, the firm earned $0.27 earnings per share. The business's revenue was up 12.6% compared to the same quarter last year. Shake Shack has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, research analysts expect that Shake Shack, Inc. will post 1.26 EPS for the current year.

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.