Shake Shack (NYSE:SHAK) Lowered to Underperform Rating by Jefferies Financial Group

Shake Shack (NYSE:SHAK - Get Free Report) was downgraded by equities researchers at Jefferies Financial Group from a "hold" rating to an "underperform" rating in a research note issued on Thursday, MarketBeat.com reports. They currently have a $120.00 price target on the stock, up from their prior price target of $100.00. Jefferies Financial Group's price objective points to a potential downside of 11.03% from the company's current price.

SHAK has been the subject of several other reports. Robert W. Baird increased their price target on Shake Shack from $85.00 to $90.00 and gave the stock a "neutral" rating in a report on Friday, May 2nd. Morgan Stanley increased their price objective on Shake Shack from $109.00 to $122.00 and gave the stock an "equal weight" rating in a research report on Monday. Bank of America increased their price objective on Shake Shack from $112.00 to $134.00 and gave the stock a "neutral" rating in a research report on Wednesday, June 25th. Wells Fargo & Company increased their price objective on Shake Shack from $95.00 to $115.00 and gave the stock an "equal weight" rating in a research report on Friday, May 30th. Finally, Raymond James Financial reiterated a "strong-buy" rating and issued a $140.00 price objective (down previously from $145.00) on shares of Shake Shack in a research report on Friday, May 2nd. Two analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $126.86.

Shake Shack Stock Performance

Shares of SHAK stock traded down $0.06 during trading hours on Thursday, hitting $134.87. The stock had a trading volume of 842,208 shares, compared to its average volume of 1,206,105. The firm has a market capitalization of $5.75 billion, a PE ratio of 481.68, a PEG ratio of 3.20 and a beta of 1.77. Shake Shack has a twelve month low of $72.93 and a twelve month high of $144.65. The stock's 50 day moving average is $128.80 and its 200 day moving average is $111.64. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.91 and a quick ratio of 1.88.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.14 earnings per share for the quarter, missing the consensus estimate of $0.16 by ($0.02). The firm had revenue of $320.90 million during the quarter, compared to analyst estimates of $330.24 million. Shake Shack had a net margin of 0.97% and a return on equity of 8.45%. Shake Shack's revenue was up 10.5% compared to the same quarter last year. During the same period in the previous year, the company posted $0.13 earnings per share. As a group, research analysts forecast that Shake Shack will post 1.26 earnings per share for the current fiscal year.

Insider Transactions at Shake Shack

In other Shake Shack news, Director Daniel Harris Meyer sold 14,200 shares of the firm's stock in a transaction dated Wednesday, July 2nd. The stock was sold at an average price of $140.31, for a total value of $1,992,402.00. Following the sale, the director directly owned 337,984 shares of the company's stock, valued at approximately $47,422,535.04. This trade represents a 4.03% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Katherine Irene Fogertey sold 670 shares of the firm's stock in a transaction dated Tuesday, July 8th. The stock was sold at an average price of $140.03, for a total value of $93,820.10. Following the completion of the sale, the chief financial officer directly owned 32,495 shares in the company, valued at approximately $4,550,274.85. The trade was a 2.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 87,391 shares of company stock valued at $11,869,925. 9.73% of the stock is currently owned by company insiders.

Institutional Trading of Shake Shack

A number of hedge funds have recently added to or reduced their stakes in the business. Cambridge Investment Research Advisors Inc. lifted its stake 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 valued at $525,000 after purchasing an additional 3,642 shares in the last quarter. Janus Henderson Group PLC lifted its stake in shares of Shake Shack by 6.2% in the 4th quarter. Janus Henderson Group PLC now owns 17,064 shares of the company's stock valued at $2,216,000 after purchasing an additional 1,000 shares in the last quarter. Sequoia Financial Advisors LLC acquired a new position in shares of Shake Shack in the 4th quarter valued at about $260,000. Bessemer Group Inc. lifted its stake 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 valued at $518,000 after purchasing an additional 2,218 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC lifted its stake 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 valued at $566,000 after purchasing an additional 2,229 shares in the last quarter. 86.07% of the stock is owned by institutional investors and hedge funds.

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.