Shake Shack (NYSE:SHAK) Share Price Passes Below 50-Day Moving Average - Here's What Happened

Key Points

• Shake Shack shares fell below their 50-day moving average, trading as low as $57.75 compared with the $65.76 average, with the latest trade near $58.15.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an $89.71 price target, though recent targets ranged from $68 to $85 and included neutral ratings.
• The company exceeded quarterly earnings expectations, reporting $0.43 EPS versus $0.31 expected and $417.62 million in revenue, up 17.2% year over year; institutional investors own 86.07% of the stock.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report)'s share price passed below its 50-day moving average during trading on Tuesday . The stock has a 50-day moving average of $65.76 and traded as low as $57.75. Shake Shack shares last traded at $58.1530, with a volume of 1,230,574 shares changing hands.

Analyst Ratings Changes

A number of analysts recently weighed in on SHAK shares. UBS Group decreased their price target on shares of Shake Shack from $79.00 to $68.00 and set a "neutral" rating for the company in a research note on Monday, August 3rd. DA Davidson lifted their price objective on shares of Shake Shack from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. BNP Paribas Exane raised their price target on Shake Shack from $77.00 to $81.00 and gave the stock an "outperform" rating in a report on Thursday, August 6th. Gordon Haskett reduced their price objective on Shake Shack from $90.00 to $70.00 and set a "buy" rating for the company in a research note on Wednesday, June 3rd. Finally, Seaport Research Partners began coverage on Shake Shack in a research note on Wednesday, September 16th. They issued a "neutral" rating on the stock. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $89.71.

Shake Shack Price Performance

The company has a current ratio of 1.67, a quick ratio of 1.64 and a debt-to-equity ratio of 0.43. The stock has a fifty day simple moving average of $65.76 and a two-hundred day simple moving average of $72.16. The company has a market cap of $2.49 billion, a PE ratio of 61.87, a price-to-earnings-growth ratio of 6.27 and a beta of 1.66.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.31 by $0.12. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%.The business had revenue of $417.62 million during the quarter, compared to the consensus estimate of $417.18 million. During the same period in the prior year, the business posted $0.44 EPS. The company's revenue for the quarter was up 17.2% on a year-over-year basis. On average, equities analysts predict that Shake Shack, Inc. will post 1.12 EPS for the current fiscal year.

Institutional Investors Weigh In On Shake Shack

Several institutional investors have recently made changes to their positions in SHAK. 12 West Capital Management LP lifted its stake in shares of Shake Shack by 12.0% in the fourth quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company's stock valued at $159,385,000 after purchasing an additional 210,000 shares during the period. Bank of America Corp DE grew its position in Shake Shack by 9.3% during the first quarter. Bank of America Corp DE now owns 899,013 shares of the company's stock worth $79,536,000 after buying an additional 76,724 shares during the period. Dimensional Fund Advisors LP increased its holdings in Shake Shack by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 670,111 shares of the company's stock valued at $59,276,000 after buying an additional 16,439 shares in the last quarter. Fisher Asset Management LLC increased its holdings in Shake Shack by 2.9% in the fourth quarter. Fisher Asset Management LLC now owns 702,101 shares of the company's stock valued at $56,990,000 after buying an additional 19,591 shares in the last quarter. Finally, Cannell & Spears LLC lifted its position in shares of Shake Shack by 27.4% during the 1st quarter. Cannell & Spears LLC now owns 452,694 shares of the company's stock valued at $40,022,000 after acquiring an additional 97,446 shares during the period. 86.07% of the stock is currently owned by hedge funds and other institutional investors.

About Shake Shack

Shake Shack Inc NYSE: SHAK operates a global chain of fast-casual restaurants known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, shakes, and other beverages. Its menu also includes beer and wine at select locations, with an emphasis on premium ingredients and hospitality-focused service.

The company traces its origins to a hot dog cart opened in New York City's Madison Square Park in 2001 as part of a park revitalization project. The first permanent Shake Shack restaurant opened in the park in 2004.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.