Shake Shack (SHAK) Shares Gap Down on Analyst Downgrade

Shake Shack Inc (NYSE:SHAK) shares gapped down prior to trading on Monday after ValuEngine downgraded the stock from a strong-buy rating to a buy rating. The stock had previously closed at $43.88, but opened at $47.19. Shake Shack shares last traded at $47.57, with a volume of 560297 shares.

Several other research analysts also recently weighed in on SHAK. Wedbush dropped their price target on Shake Shack from $62.00 to $56.00 and set a “neutral” rating for the company in a research note on Friday. Zacks Investment Research downgraded Shake Shack from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, October 23rd. Barclays dropped their price target on Shake Shack from $59.00 to $56.00 and set an “equal weight” rating for the company in a research note on Friday. SunTrust Banks lowered their target price on Shake Shack to $60.00 and set a “buy” rating for the company in a research report on Friday. Finally, Morgan Stanley increased their target price on Shake Shack from $47.00 to $51.00 and gave the company an “equal weight” rating in a research report on Monday, July 16th. Two research analysts have rated the stock with a sell rating, seven have issued a hold rating, three have assigned a buy rating and one has issued a strong buy rating to the stock. Shake Shack has a consensus rating of “Hold” and an average price target of $53.90.

In related news, major shareholder Equity Group L.P. Select sold 6,222 shares of the firm’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $62.14, for a total value of $386,635.08. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Daniel Harris Meyer sold 10,000 shares of the firm’s stock in a transaction on Monday, October 1st. The stock was sold at an average price of $62.08, for a total value of $620,800.00. Following the completion of the sale, the director now owns 1,032 shares of the company’s stock, valued at $64,066.56. The disclosure for this sale can be found here. Insiders have sold a total of 1,284,560 shares of company stock valued at $74,700,300 over the last quarter. Corporate insiders own 30.18% of the company’s stock.

Institutional investors and hedge funds have recently modified their holdings of the stock. Rehmann Capital Advisory Group bought a new stake in Shake Shack in the second quarter worth $124,000. Advisors Asset Management Inc. increased its stake in Shake Shack by 50.7% in the second quarter. Advisors Asset Management Inc. now owns 3,202 shares of the company’s stock worth $212,000 after purchasing an additional 1,077 shares during the period. HM Payson & Co. purchased a new stake in Shake Shack in the second quarter worth $249,000. Pinebridge Investments L.P. purchased a new stake in Shake Shack in the second quarter worth $250,000. Finally, Amalgamated Bank purchased a new stake in Shake Shack in the second quarter worth $261,000. Institutional investors own 87.50% of the company’s stock.

The company has a market capitalization of $1.75 billion, a price-to-earnings ratio of 83.19, a price-to-earnings-growth ratio of 3.27 and a beta of 1.36.

Shake Shack (NYSE:SHAK) last released its earnings results on Thursday, November 1st. The company reported $0.21 earnings per share for the quarter, topping analysts’ consensus estimates of $0.13 by $0.08. Shake Shack had a return on equity of 11.02% and a net margin of 0.40%. The business had revenue of $119.65 million for the quarter, compared to analyst estimates of $116.81 million. During the same quarter last year, the firm posted $0.17 earnings per share. The business’s revenue was up 26.5% compared to the same quarter last year. Sell-side analysts forecast that Shake Shack Inc will post 0.64 earnings per share for the current year.

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About Shake Shack (NYSE:SHAK)

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of October 9, 2018, it operated 180 locations in 26 U.S.

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