Shake Shack (NYSE:SHAK) Trading Down 6.2% After Analyst Downgrade

Key Points

• Shake Shack shares fell 6.2% after JPMorgan Chase cut its price target from $100 to $85 while keeping a neutral rating. The stock traded as low as $65.50, below its prior close of $70.14.
• Other analysts were mixed on the stock, with recent price targets ranging from $76 to $117 and the consensus rating still at Moderate Buy. The consensus price target across analysts stands at $107.92.
• Shake Shack’s latest quarterly results missed earnings and revenue expectations, reporting $0.00 EPS versus the expected $0.11 and revenue of $366.74 million versus $372.43 million. Revenue still rose 14.3% year over year, but the company remains under pressure after the miss.

Shake Shack, Inc. (NYSE:SHAK - Get Free Report) dropped 6.2% during mid-day trading on Monday after JPMorgan Chase & Co. lowered their price target on the stock from $100.00 to $85.00. JPMorgan Chase & Co. currently has a neutral rating on the stock. Shake Shack traded as low as $65.50 and last traded at $65.7810. Approximately 1,651,333 shares were traded during trading, an increase of 5% from the average daily volume of 1,578,942 shares. The stock had previously closed at $70.14.

A number of other equities analysts also recently issued reports on the stock. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $117.00 price objective on shares of Shake Shack in a report on Wednesday, April 15th. Robert W. Baird set a $76.00 price objective on shares of Shake Shack in a report on Thursday. TD Cowen dropped their price objective on shares of Shake Shack from $105.00 to $76.00 and set a "hold" rating on the stock in a report on Thursday. Oppenheimer set a $100.00 price objective on shares of Shake Shack in a report on Friday. Finally, DA Davidson set a $85.00 price objective on shares of Shake Shack in a report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and thirteen have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $107.92.

Insiders Place Their Bets

In other Shake Shack news, insider Stephanie Ann Sentell sold 258 shares of Shake Shack stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total transaction of $26,370.18. Following the transaction, the insider owned 15,084 shares of the company's stock, valued at $1,541,735.64. The trade was a 1.68% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Shake Shack

Several large investors have recently added to or reduced their stakes in the company. Wellington Management Group LLP lifted its holdings in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock valued at $242,535,000 after purchasing an additional 450,406 shares in the last quarter. 12 West Capital Management LP lifted its holdings in Shake Shack by 12.0% during 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 in the last quarter. State Street Corp lifted its holdings in Shake Shack by 1.1% during the second quarter. State Street Corp now owns 1,470,084 shares of the company's stock valued at $206,694,000 after purchasing an additional 15,607 shares in the last quarter. Swedbank AB purchased a new position in Shake Shack during the fourth quarter valued at approximately $84,092,000. Finally, Van Berkom & Associates Inc. lifted its holdings in Shake Shack by 27.6% during the fourth quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company's stock valued at $74,948,000 after purchasing an additional 199,687 shares in the last quarter. Hedge funds and other institutional investors own 86.07% of the company's stock.

Shake Shack Price Performance

The company has a quick ratio of 1.66, a current ratio of 1.69 and a debt-to-equity ratio of 0.45. The firm has a market cap of $2.81 billion, a PE ratio of 67.08, a P/E/G ratio of 2.93 and a beta of 1.78. The firm's fifty day simple moving average is $94.14 and its two-hundred day simple moving average is $91.01.

Shake Shack (NYSE:SHAK - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.00 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.11). The firm had revenue of $366.74 million for the quarter, compared to analysts' expectations of $372.43 million. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. Shake Shack's revenue for the quarter was up 14.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.14 EPS. As a group, research analysts expect that Shake Shack, Inc. will post 1.3 EPS for the current year.

About Shake Shack

Shake Shack, Inc NYSE: SHAK is a publicly traded hospitality company known for its modern take on the classic American roadside burger stand. The company operates a chain of quick-casual restaurants offering premium hamburgers, hot dogs, crinkle-cut fries, frozen custard, milkshakes and a curated selection of beer and wine. Shake Shack emphasizes high-quality ingredients, including 100% all-natural Angus beef with no hormones or antibiotics, and works with local suppliers where possible to maintain its commitment to fresh, responsibly sourced food.

Shake Shack traces its origins to a hot dog cart opened in New York City's Madison Square Park in 2001 by Danny Meyer's Union Square Hospitality Group.

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