Vanguard Group Inc. Trims Stock Holdings in Shake Shack, Inc. $SHAK

Key Points

• Vanguard trimmed its Shake Shack stake by 0.5%, selling 19,820 shares to hold 4,313,524 shares (about 10.10% ownership) valued at roughly $350.1 million at quarter-end.
• Shake Shack missed expectations — reporting $0.00 EPS vs. $0.11 expected and $366.7M in revenue vs. ~$372M — which sent the stock down about 28% and prompted analyst repricings; management said Q2 revenue should be ~$424–$428M and named Michelle Hook as CFO.

Vanguard Group Inc. decreased its holdings in Shake Shack, Inc. (NYSE:SHAK - Free Report) by 0.5% in the 4th quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 4,313,524 shares of the company's stock after selling 19,820 shares during the period. Vanguard Group Inc. owned 10.10% of Shake Shack worth $350,129,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of the business. Concurrent Investment Advisors LLC increased its stake in shares of Shake Shack by 552.5% in the fourth quarter. Concurrent Investment Advisors LLC now owns 20,496 shares of the company's stock worth $1,664,000 after purchasing an additional 17,355 shares in the last quarter. Kercheville Advisors LLC purchased a new position in shares of Shake Shack in the fourth quarter worth about $325,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its position in shares of Shake Shack by 9.4% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 54,350 shares of the company's stock valued at $4,407,000 after acquiring an additional 4,692 shares during the period. Farther Finance Advisors LLC boosted its position in shares of Shake Shack by 18.2% in the fourth quarter. Farther Finance Advisors LLC now owns 935 shares of the company's stock valued at $76,000 after acquiring an additional 144 shares during the period. Finally, Assetmark Inc. boosted its position in shares of Shake Shack by 457.6% in 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 period. Hedge funds and other institutional investors own 86.07% of the company's stock.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on SHAK. DA Davidson restated a "buy" rating and issued a $125.00 price objective on shares of Shake Shack in a research report on Monday, April 27th. Mizuho upgraded shares of Shake Shack from a "neutral" rating to an "outperform" rating and raised their price objective for the company from $100.00 to $120.00 in a research report on Friday, April 10th. Wolfe Research began coverage on shares of Shake Shack in a research report on Monday, March 9th. They issued an "outperform" rating and a $118.00 price objective for the company. Guggenheim began coverage on shares of Shake Shack in a research report on Friday, April 24th. They issued a "buy" rating and a $120.00 price objective for the company. Finally, Bank of America upgraded shares of Shake Shack from an "underperform" rating to a "neutral" rating and raised their price objective for the company from $88.00 to $101.00 in a research report on Tuesday, March 31st. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and fourteen have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $116.17.

Shake Shack Trading Down 28.0%

Shares of Shake Shack stock opened at $69.49 on Friday. Shake Shack, Inc. has a 1 year low of $67.21 and a 1 year high of $144.65. The firm has a market cap of $2.97 billion, a PE ratio of 63.75, a PEG ratio of 3.76 and a beta of 1.78. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.76 and a quick ratio of 1.73. The company has a 50 day simple moving average of $94.14 and a two-hundred day simple moving average of $91.01.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its earnings results 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 net margin of 3.16% and a return on equity of 11.08%. The company had revenue of $366.74 million for the quarter, compared to the consensus estimate of $372.43 million. During the same quarter in the previous year, the firm earned $0.14 earnings per share. The company's revenue for the quarter was up 14.3% compared to the same quarter last year. Analysts expect that Shake Shack, Inc. will post 1.4 earnings per share for the current fiscal year.

Insider Transactions at Shake Shack

In other Shake Shack news, insider Stephanie Ann Sentell sold 258 shares of Shake Shack stock in a transaction that occurred on 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 sale, the insider directly owned 15,084 shares in the company, valued at $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 available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is currently owned by insiders.

Key Stories Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Management raised second-quarter revenue guidance to ~$424M–$428M (above consensus), signaling expected top-line improvement into Q2. Press Release
• Positive Sentiment: Executive change: Shake Shack named Michelle Hook as CFO (effective May 11), which reduces near-term leadership uncertainty around finance, reporting and investor relations. Shake Shack Appoints Michelle Hook as Chief Financial Officer
• Neutral Sentiment: Underlying operations show mixed strength: revenue grew ~14.3% year-over-year and restaurant-level profit expanded (SA notes +17% YoY), but those gains were offset by investments and cost pressures that pushed operating margin negative. When Valuation Met Reality (Seeking Alpha)
• Negative Sentiment: Quarterly results missed expectations: reported ~$0.00 EPS vs. consensus ~$0.11 and revenue of $366.7M vs. ~$372M expected; the company reported an operating loss. Those misses are the primary driver of the share decline. Shake Shack shares crater after burger chain reports operating loss (CNBC)
• Negative Sentiment: Management cited demand weakness in large urban markets (notably NYC), winter-storm headwinds, higher beef costs and a faster store-opening cadence that pressured results — all factors investors view as near-term earnings risks. Shake Shack shares shook by sales shock (NY Post)
• Negative Sentiment: Analyst reaction: TD Cowen cut its price target to $76 and moved to a "hold," reflecting a repricing of risk and limiting near-term upside from current levels.

Shake Shack 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.

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