Shake Shack (NYSE:SHAK) Stock Price Down 3.4% - Here's Why

Key Points

• Shake Shack's share price declined by 3.4% to $106.52, with trading volume dropping 80% compared to its average.
• Analysts have given Shake Shack an average rating of "Hold" with a price target of $131.29, while various firms have adjusted their price targets ranging from $125.00 to $160.00.
• Despite the recent price drop, Shake Shack reported a quarterly earnings per share of $0.44, exceeding estimates and reflecting a year-over-year revenue increase of 12.6%.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report)'s share price dropped 3.4% on Wednesday . The company traded as low as $106.57 and last traded at $106.52. Approximately 288,909 shares changed hands during trading, a decline of 80% from the average daily volume of 1,474,339 shares. The stock had previously closed at $110.32.

Analyst Upgrades and Downgrades

SHAK has been the subject of a number of analyst reports. Bank of America upped their target price on Shake Shack from $134.00 to $148.00 and gave the stock a "neutral" rating in a report on Friday, July 18th. Raymond James Financial reiterated a "strong-buy" rating and set a $160.00 price objective (down previously from $165.00) on shares of Shake Shack in a report on Friday, August 1st. Wells Fargo & Company increased their price objective on Shake Shack from $115.00 to $125.00 and gave the company an "equal weight" rating in a report on Thursday, July 17th. Loop Capital reissued a "hold" rating and issued a $127.00 target price on shares of Shake Shack in a research report on Tuesday, July 8th. Finally, UBS Group reissued a "neutral" rating and issued a $140.00 target price (up from $100.00) on shares of Shake Shack in a research report on Friday, July 25th. Two research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, Shake Shack presently has an average rating of "Hold" and an average price target of $131.29.

Shake Shack Trading Down 1.4%

The stock has a market capitalization of $4.64 billion, a PE ratio of 235.87, a PEG ratio of 2.41 and a beta of 1.82. 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 business's 50-day moving average is $130.56 and its two-hundred day moving average is $111.50.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.44 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.07. Shake Shack had a net margin of 1.50% and a return on equity of 9.78%. The firm had revenue of $356.47 million during the quarter, compared to analysts' expectations of $352.56 million. During the same period in the previous year, the company earned $0.27 earnings per share. Shake Shack's quarterly revenue was up 12.6% compared to the same quarter last year. On average, analysts anticipate that Shake Shack, Inc. will post 1.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Katherine Irene Fogertey sold 670 shares of the business's stock in a transaction on Tuesday, July 8th. The shares were 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 of the company's stock, valued at $4,550,274.85. The trade was a 2.02% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Daniel Harris Meyer sold 14,200 shares of the business's stock in a transaction on Wednesday, July 2nd. The shares were sold at an average price of $140.31, for a total transaction of $1,992,402.00. Following the completion of 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 ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 87,211 shares of company stock valued at $11,849,216. 8.50% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Shake Shack

Institutional investors and hedge funds have recently made changes to their positions in the business. Farther Finance Advisors LLC raised its holdings in shares of Shake Shack by 939.3% in the first quarter. Farther Finance Advisors LLC now owns 291 shares of the company's stock valued at $26,000 after buying an additional 263 shares during the last quarter. Geneos Wealth Management Inc. purchased a new stake in shares of Shake Shack in the first quarter valued at about $26,000. Ameritas Advisory Services LLC purchased a new stake in shares of Shake Shack in the second quarter valued at about $31,000. Garde Capital Inc. purchased a new stake in shares of Shake Shack in the first quarter valued at about $35,000. Finally, Parallel Advisors LLC raised its holdings in shares of Shake Shack by 679.4% in the second quarter. Parallel Advisors LLC now owns 265 shares of the company's stock valued at $37,000 after buying an additional 231 shares during the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

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.

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