Shake Shack (NYSE:SHAK) Reaches New 52-Week Low – Here’s Why

Shake Shack, Inc. (NYSE:SHAK)’s share price reached a new 52-week low on Thursday . The stock traded as low as $63.37 and last traded at $63.3230, with a volume of 581554 shares changing hands. The stock had previously closed at $63.91.

Analyst Ratings Changes

A number of research firms have recently issued reports on SHAK. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $117.00 price objective on shares of Shake Shack in a report on Wednesday, April 15th. BNP Paribas Exane dropped their price target on Shake Shack from $124.00 to $100.00 and set an “outperform” rating for the company in a research note on Friday, May 8th. DA Davidson set a $85.00 price objective on Shake Shack in a report on Friday, May 8th. Stifel Nicolaus upgraded Shake Shack from a “hold” rating to a “buy” rating and reduced their price objective for the company from $105.00 to $85.00 in a research report on Friday, May 8th. Finally, Weiss Ratings downgraded Shake Shack from a “hold (c)” rating to a “sell (d+)” rating in a research report on Monday. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $107.08.

Shake Shack Trading Down 3.4%

The firm’s 50 day moving average is $91.80 and its 200 day moving average is $90.27. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. The company has a market capitalization of $2.64 billion, a PE ratio of 63.01, a P/E/G ratio of 2.73 and a beta of 1.78.

Shake Shack (NYSE:SHAK) last announced 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%. The company’s quarterly revenue was up 14.3% on a year-over-year basis. During the same period in the previous year, the company earned $0.14 EPS. As a group, equities analysts predict that Shake Shack, Inc. will post 1.24 EPS for the current year.

Insider Transactions at Shake Shack

In other Shake Shack news, insider Stephanie Ann Sentell sold 258 shares of the company’s stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $102.21, for a total transaction of $26,370.18. Following the completion of the transaction, the insider owned 15,084 shares of the company’s stock, valued at $1,541,735.64. This represents a 1.68% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.32% of the stock is currently owned by corporate insiders.

Institutional Trading of Shake Shack

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Swedbank AB bought a new stake in shares of Shake Shack during the 4th quarter valued at about $84,092,000. Adage Capital Partners GP L.L.C. bought a new stake in Shake Shack during the 4th quarter valued at approximately $40,829,000. Wellington Management Group LLP grew its holdings in shares of Shake Shack by 21.0% during the 3rd quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock worth $242,535,000 after acquiring an additional 450,406 shares during the period. Marshall Wace LLP grew its holdings in shares of Shake Shack by 285.2% during the 3rd quarter. Marshall Wace LLP now owns 586,999 shares of the company’s stock worth $54,949,000 after acquiring an additional 434,625 shares during the period. Finally, Renaissance Technologies LLC bought a new position in shares of Shake Shack in the 4th quarter worth approximately $20,455,000. Hedge funds and other institutional investors own 86.07% of the company’s stock.

Shake Shack Company Profile

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.