Madison Asset Management LLC Grows Stake in Shake Shack, Inc. $SHAK

Key Points

• Madison Asset Management boosted its Shake Shack stake by 37.3% in Q4, buying an additional 15,852 shares and bringing its total holdings to 58,404 shares worth about $4.74 million.
• Shake Shack reported mixed quarterly results: revenue rose 14.3% year over year to $366.74 million, but earnings came in at $0.00 per share, missing analyst expectations of $0.11.
• The stock was down 3.2% and trading near its 52-week low, while analysts remain split but overall rate it a Moderate Buy with a consensus target price of $107.08.

Madison Asset Management LLC grew its position in Shake Shack, Inc. (NYSE:SHAK - Free Report) by 37.3% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 58,404 shares of the company's stock after purchasing an additional 15,852 shares during the quarter. Madison Asset Management LLC owned about 0.14% of Shake Shack worth $4,741,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Nordea Investment Management AB grew its holdings in Shake Shack by 36.6% in the third quarter. Nordea Investment Management AB now owns 106,317 shares of the company's stock worth $9,851,000 after purchasing an additional 28,487 shares during the last quarter. Divisadero Street Capital Management LP grew its holdings in Shake Shack by 407.8% in the third quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company's stock worth $5,334,000 after purchasing an additional 45,762 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new position in Shake Shack in the third quarter worth $8,416,000. Public Sector Pension Investment Board grew its holdings in Shake Shack by 14.5% in the third quarter. Public Sector Pension Investment Board now owns 156,998 shares of the company's stock worth $14,697,000 after purchasing an additional 19,889 shares during the last quarter. Finally, 12 West Capital Management LP grew its holdings in shares of Shake Shack by 13.6% during the third quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company's stock valued at $164,154,000 after buying an additional 210,000 shares during the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Shake Shack

In related news, insider Stephanie Ann Sentell sold 258 shares of the company's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total transaction of $26,370.18. Following the completion of the transaction, the insider owned 15,084 shares in the company, valued at $1,541,735.64. This represents a 1.68% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.32% of the stock is currently owned by company insiders.

Shake Shack Trading Down 3.2%

Shares of Shake Shack stock opened at $63.89 on Thursday. The firm has a 50-day simple moving average of $91.80 and a two-hundred day simple moving average of $90.27. The company has a market cap of $2.73 billion, a P/E ratio of 65.19, a price-to-earnings-growth ratio of 2.73 and a beta of 1.78. Shake Shack, Inc. has a fifty-two week low of $63.51 and a fifty-two week high of $144.65. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $0.00 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.11). Shake Shack had a return on equity of 9.62% and a net margin of 2.76%.The company had revenue of $366.74 million for the quarter, compared to analyst estimates of $372.43 million. During the same quarter last year, the company earned $0.14 EPS. The firm's revenue for the quarter was up 14.3% on a year-over-year basis. As a group, equities analysts predict that Shake Shack, Inc. will post 1.24 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on SHAK. Weiss Ratings lowered shares of Shake Shack from a "hold (c)" rating to a "sell (d+)" rating in a report on Monday. DA Davidson set a $85.00 price objective on shares of Shake Shack in a report on Friday, May 8th. Robert W. Baird set a $76.00 price objective on shares of Shake Shack in a report on Thursday, May 7th. Guggenheim dropped their price objective on shares of Shake Shack from $120.00 to $100.00 and set a "buy" rating on the stock in a report on Monday. Finally, Stifel Nicolaus raised shares of Shake Shack from a "hold" rating to a "buy" rating and dropped their price objective for the company from $105.00 to $85.00 in a report on Friday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $107.08.

About Shake Shack

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.

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