Shake Shack (NYSE:SHAK) Shares Down 7.6% – Time to Sell?

Shake Shack Inc. (NYSE:SHAK)’s stock price traded down 7.6% during mid-day trading on Friday . The stock traded as low as $114.68 and last traded at $114.23. 1,015,010 shares traded hands during trading, a decline of 27% from the average session volume of 1,394,495 shares. The stock had previously closed at $123.61.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. Barclays upgraded Shake Shack from an “equal weight” rating to an “overweight” rating and upped their target price for the stock from $125.00 to $159.00 in a research note on Tuesday, January 7th. Wedbush raised their target price on shares of Shake Shack from $115.00 to $125.00 and gave the company a “neutral” rating in a research note on Friday. TD Securities reissued a “buy” rating and issued a $140.00 price target on shares of Shake Shack in a research note on Friday. Truist Financial increased their price target on shares of Shake Shack from $143.00 to $154.00 and gave the stock a “buy” rating in a report on Friday. Finally, UBS Group lifted their price objective on shares of Shake Shack from $130.00 to $140.00 and gave the stock a “neutral” rating in a report on Tuesday, January 7th. Two equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating and nine have given a buy rating to the company’s stock. According to data from MarketBeat.com, Shake Shack currently has a consensus rating of “Hold” and a consensus price target of $125.50.

Shake Shack Trading Down 10.5 %

The firm has a market cap of $4.70 billion, a PE ratio of 648.35 and a beta of 1.86. The firm has a fifty day simple moving average of $122.24 and a two-hundred day simple moving average of $116.17. The company has a current ratio of 2.01, a quick ratio of 1.98 and a debt-to-equity ratio of 0.51.

Shake Shack (NYSE:SHAK) last issued its quarterly earnings data on Thursday, February 20th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.01. Shake Shack had a net margin of 0.68% and a return on equity of 6.28%. The business had revenue of $328.68 million for the quarter, compared to the consensus estimate of $329.02 million. Equities analysts forecast that Shake Shack Inc. will post 0.9 EPS for the current year.

Insider Activity

In related news, CFO Katherine Irene Fogertey sold 642 shares of the company’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $137.51, for a total value of $88,281.42. Following the sale, the chief financial officer now owns 30,717 shares in the company, valued at $4,223,894.67. This represents a 2.05 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Company insiders own 9.73% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Several hedge funds have recently added to or reduced their stakes in SHAK. Nemes Rush Group LLC purchased a new stake in Shake Shack during the 4th quarter valued at about $29,000. Harvest Fund Management Co. Ltd purchased a new stake in shares of Shake Shack during the fourth quarter valued at approximately $32,000. Mowery & Schoenfeld Wealth Management LLC bought a new stake in shares of Shake Shack during the third quarter valued at approximately $41,000. Transcendent Capital Group LLC bought a new stake in shares of Shake Shack during the fourth quarter valued at approximately $52,000. Finally, R Squared Ltd purchased a new position in Shake Shack in the 4th quarter worth approximately $56,000. 86.07% of the stock is owned by 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.