Shake Shack (NYSE:SHAK) Shares Gap Down - What's Next?

Key Points

• Shake Shack's shares opened at $94.24, down from a previous close of $96.79, reflecting a notable decline in market confidence.
• Analysts have mixed feelings on the stock, with Raymond James maintaining a "strong-buy" rating but lowering its price target from $165 to $160, while Bank of America downgraded its rating to "underperform" with a reduced target price of $86.
• The company reported a 12.6% year-over-year revenue increase for the latest quarter, with earnings per share of $0.44, exceeding consensus estimates, showcasing solid operational performance despite stock volatility.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report)'s share price gapped down before the market opened on Monday . The stock had previously closed at $96.79, but opened at $94.24. Shake Shack shares last traded at $94.96, with a volume of 266,137 shares changing hands.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on SHAK shares. Raymond James Financial restated a "strong-buy" rating and set a $160.00 price target (down from $165.00) on shares of Shake Shack in a research report on Friday, August 1st. TD Cowen upped their price target on Shake Shack from $105.00 to $110.00 and gave the company a "hold" rating in a report on Thursday, July 31st. Weiss Ratings restated a "hold (c)" rating on shares of Shake Shack in a report on Saturday, September 27th. Wells Fargo & Company increased their target price on Shake Shack from $115.00 to $125.00 and gave the company an "equal weight" rating in a report on Thursday, July 17th. Finally, Bank of America reissued an "underperform" rating and issued a $86.00 target price (down from $148.00) on shares of Shake Shack in a research report on Monday. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, twelve have assigned a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $129.16.

Shake Shack Trading Down 1.2%

The firm has a market capitalization of $4.08 billion, a P/E ratio of 207.90, a PEG ratio of 2.20 and a beta of 1.65. The company has a quick ratio of 1.89, a current ratio of 1.92 and a debt-to-equity ratio of 0.48. The stock has a fifty day simple moving average of $105.16 and a 200 day simple moving average of $110.31.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.37 by $0.07. Shake Shack had a return on equity of 9.78% and a net margin of 1.50%.The company had revenue of $356.47 million for the quarter, compared to the consensus estimate of $352.56 million. During the same quarter last year, the company earned $0.27 EPS. The firm's quarterly revenue was up 12.6% on a year-over-year basis. Shake Shack has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, research analysts forecast that Shake Shack, Inc. will post 1.26 EPS for the current year.

Insider Buying and Selling at Shake Shack

In related news, CFO Katherine Irene Fogertey sold 670 shares of the stock in a transaction that occurred on Tuesday, July 8th. The stock was sold at an average price of $140.03, for a total transaction of $93,820.10. Following the completion of the transaction, the chief financial officer directly owned 32,495 shares of the company's stock, valued at approximately $4,550,274.85. This represents a 2.02% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 8.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Farther Finance Advisors LLC lifted its position in Shake Shack by 939.3% during the first quarter. Farther Finance Advisors LLC now owns 291 shares of the company's stock valued at $26,000 after purchasing an additional 263 shares during the last quarter. Geneos Wealth Management Inc. bought a new position in shares of Shake Shack in the 1st quarter valued at about $26,000. Ameritas Advisory Services LLC bought a new position in shares of Shake Shack in the 2nd quarter valued at about $31,000. Garde Capital Inc. purchased a new position in Shake Shack in the first quarter worth about $35,000. Finally, Parallel Advisors LLC increased its stake in Shake Shack by 679.4% during the second quarter. Parallel Advisors LLC now owns 265 shares of the company's stock worth $37,000 after acquiring an additional 231 shares during the last quarter. 86.07% of the stock is currently owned by institutional investors.

Shake Shack Company Profile

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.

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