Swedbank AB Acquires Shares of 1,036,000 Shake Shack, Inc. $SHAK

Key Points

• Swedbank AB disclosed a new fourth-quarter stake in Shake Shack, buying 1,036,000 shares valued at about $84.1 million. The position represented roughly 2.43% of the company.
• Shake Shack’s latest quarterly results came in below expectations, with EPS of $0.00 versus the $0.11 estimate and revenue of $366.74 million slightly under forecasts. Despite that miss, revenue still rose 14.3% year over year.
• Analyst sentiment has turned more cautious after the earnings report, with several firms cutting price targets and one downgrading the stock. Shake Shack now has a consensus rating of Moderate Buy with an average target price of $107.08.

Swedbank AB acquired a new stake in Shake Shack, Inc. (NYSE:SHAK - Free Report) during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor acquired 1,036,000 shares of the company's stock, valued at approximately $84,092,000. Swedbank AB owned about 2.43% of Shake Shack at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Geneos Wealth Management Inc. purchased a new stake in shares of Shake Shack in the 1st quarter valued at approximately $26,000. Assetmark Inc. increased its position in shares of Shake Shack by 457.6% in the 4th quarter. Assetmark Inc. now owns 368 shares of the company's stock valued at $30,000 after purchasing an additional 302 shares during the last quarter. Advisory Services Network LLC purchased a new stake in shares of Shake Shack in the 3rd quarter valued at approximately $38,000. Murphy & Mullick Capital Management Corp grew its position in shares of Shake Shack by 68.5% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company's stock valued at $38,000 after buying an additional 170 shares during the last quarter. Finally, Parallel Advisors LLC grew its position in shares of Shake Shack by 122.6% in the 3rd quarter. Parallel Advisors LLC now owns 590 shares of the company's stock valued at $55,000 after buying an additional 325 shares during the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Shake Shack

In other Shake Shack news, Director Sumaiya Balbale acquired 4,068 shares of the stock in a transaction on Friday, May 15th. The shares were bought at an average cost of $61.42 per share, with a total value of $249,856.56. Following the transaction, the director owned 13,407 shares of the company's stock, valued at approximately $823,457.94. This trade represents a 43.56% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Daniel Harris Meyer acquired 32,258 shares of the stock in a transaction on Friday, May 15th. The shares were acquired at an average cost of $61.88 per share, for a total transaction of $1,996,125.04. Following the completion of the transaction, the director directly owned 378,670 shares in the company, valued at $23,432,099.60. The trade was a 9.31% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought a total of 50,616 shares of company stock worth $3,109,782 in the last three months. Company insiders own 8.32% of the company's stock.

Shake Shack Trading Down 0.1%

NYSE SHAK opened at $62.74 on Friday. 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's fifty day moving average price is $87.14 and its 200 day moving average price is $88.80. The company has a market capitalization of $2.68 billion, a price-to-earnings ratio of 64.02, a price-to-earnings-growth ratio of 2.59 and a beta of 1.78. Shake Shack, Inc. has a 12 month low of $59.49 and a 12 month high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $0.00 earnings per share (EPS) 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 business had revenue of $366.74 million for the quarter, compared to analysts' expectations of $372.43 million. During the same period in the previous year, the business posted $0.14 earnings per share. The company's revenue for the quarter was up 14.3% on a year-over-year basis. On average, sell-side analysts expect that Shake Shack, Inc. will post 1.24 earnings per share for the current fiscal year.

Analyst Ratings Changes

SHAK has been the topic of a number of recent analyst reports. Wells Fargo & Company dropped their target price 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, May 8th. Stifel Nicolaus raised shares of Shake Shack from a "hold" rating to a "buy" rating and dropped their target price for the company from $105.00 to $85.00 in a research report on Friday, May 8th. JPMorgan Chase & Co. dropped their target price on shares of Shake Shack from $100.00 to $85.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. Wall Street Zen downgraded shares of Shake Shack from a "hold" rating to a "strong sell" rating in a research report on Saturday, May 16th. Finally, Zacks Research raised shares of Shake Shack from a "strong sell" rating to a "hold" rating in a research report on Monday, March 9th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average 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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