Shake Shack (NYSE:SHAK) Shares Down 7.3% - Here's Why

Key Points

• Shake Shack shares fell 7.3% to about $58.90 in mid-day trading, with trading volume 66% below the average session volume.
• Despite the selloff, analysts maintain a generally positive outlook: the stock has a consensus “Moderate Buy” rating and an average price target of $89.71.
• The company recently exceeded quarterly expectations, reporting $0.43 in EPS versus the $0.31 consensus and $417.62 million in revenue, up 17.2% year over year.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report)'s stock price fell 7.3% during mid-day trading on Tuesday . The company traded as low as $59.27 and last traded at $58.9040. 600,484 shares traded hands during trading, a decline of 66% from the average session volume of 1,782,226 shares. The stock had previously closed at $63.51.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on SHAK shares. Royal Bank Of Canada initiated coverage on shares of Shake Shack in a research note on Tuesday, September 8th. They set an "outperform" rating and a $89.00 price target for the company. Mizuho set a $90.00 target price on shares of Shake Shack in a research note on Thursday, August 6th. Wall Street Zen upgraded Shake Shack from a "sell" rating to a "hold" rating in a research note on Saturday. BNP Paribas Exane increased their target price on shares of Shake Shack from $77.00 to $81.00 and gave the stock an "outperform" rating in a research note on Thursday, August 6th. Finally, Gordon Haskett cut their target price on shares of Shake Shack from $90.00 to $70.00 and set a "buy" rating for the company in a research report on Wednesday, June 3rd. Sixteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $89.71.

Shake Shack Stock Down 8.1%

The company has a quick ratio of 1.64, a current ratio of 1.67 and a debt-to-equity ratio of 0.43. The company has a fifty day moving average price of $65.87 and a 200-day moving average price of $73.81. The stock has a market capitalization of $2.50 billion, a P/E ratio of 62.18, a PEG ratio of 7.03 and a beta of 1.66.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The company had revenue of $417.62 million during the quarter, compared to analyst estimates of $417.18 million. During the same quarter last year, the business posted $0.44 EPS. The firm's revenue for the quarter was up 17.2% on a year-over-year basis. As a group, research analysts forecast that Shake Shack, Inc. will post 1.12 EPS for the current fiscal year.

Hedge Funds Weigh In On Shake Shack

Large investors have recently bought and sold shares of the business. Oregon Public Employees Retirement Fund boosted its holdings in shares of Shake Shack by 1.7% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 9,186 shares of the company's stock valued at $746,000 after acquiring an additional 150 shares during the period. Hilton Head Capital Partners LLC boosted its stake in shares of Shake Shack by 65.0% during the 1st quarter. Hilton Head Capital Partners LLC now owns 513 shares of the company's stock valued at $45,000 after buying an additional 202 shares during the period. Murphy & Mullick Capital Management Corp lifted its stake in Shake Shack by 42.5% in the first quarter. Murphy & Mullick Capital Management Corp now owns 738 shares of the company's stock valued at $65,000 after acquiring an additional 220 shares during the last quarter. ProShare Advisors LLC lifted its stake in shares of Shake Shack by 3.1% in the fourth quarter. ProShare Advisors LLC now owns 7,578 shares of the company's stock worth $615,000 after buying an additional 226 shares during the last quarter. Finally, IFP Advisors Inc increased its position in Shake Shack by 43.0% in the 2nd quarter. IFP Advisors Inc now owns 924 shares of the company's stock worth $52,000 after buying an additional 278 shares during the period. Hedge funds and other institutional investors own 86.07% of the company's stock.

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.

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