Vanguard Group Inc. Sells 19,820 Shares of Shake Shack, Inc. $SHAK

Vanguard Group Inc. trimmed its holdings in Shake Shack, Inc. (NYSE:SHAK) by 0.5% in the fourth quarter, HoldingsChannel reports. The fund owned 4,313,524 shares of the company’s stock after selling 19,820 shares during the period. Vanguard Group Inc. owned approximately 0.10% of Shake Shack worth $350,129,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Nordea Investment Management AB lifted its holdings in shares of Shake Shack by 36.6% in the 3rd quarter. Nordea Investment Management AB now owns 106,317 shares of the company’s stock worth $9,851,000 after acquiring an additional 28,487 shares during the last quarter. Divisadero Street Capital Management LP increased its stake in shares of Shake Shack by 407.8% in the third quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company’s stock worth $5,334,000 after buying an additional 45,762 shares during the period. Y Intercept Hong Kong Ltd purchased a new position in shares of Shake Shack in the third quarter worth $8,416,000. Public Sector Pension Investment Board increased its stake in shares of Shake Shack by 14.5% in the third quarter. Public Sector Pension Investment Board now owns 156,998 shares of the company’s stock worth $14,697,000 after buying an additional 19,889 shares during the period. Finally, 12 West Capital Management LP increased its stake in shares of Shake Shack by 13.6% in the third quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company’s stock worth $164,154,000 after buying an additional 210,000 shares during the period. 86.07% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages recently commented on SHAK. Truist Financial lifted their target price on shares of Shake Shack from $144.00 to $148.00 and gave the stock a “buy” rating in a research note on Monday, March 2nd. Wolfe Research began coverage on shares of Shake Shack in a research note on Monday, March 9th. They issued an “outperform” rating and a $118.00 target price on the stock. DA Davidson reaffirmed a “buy” rating and issued a $125.00 target price on shares of Shake Shack in a research note on Monday, April 27th. Wells Fargo & Company lifted their target price on shares of Shake Shack from $90.00 to $100.00 and gave the stock an “equal weight” rating in a research note on Friday, February 27th. Finally, Bank of America raised shares of Shake Shack from an “underperform” rating to a “neutral” rating and boosted their price objective for the company from $88.00 to $101.00 in a research report on Tuesday, March 31st. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and fourteen have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $116.17.

Key Shake Shack News

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Management raised second-quarter revenue guidance to ~$424M–$428M (above consensus), signaling expected top-line improvement into Q2. Press Release
• Positive Sentiment: Executive change: Shake Shack named Michelle Hook as CFO (effective May 11), which reduces near-term leadership uncertainty around finance, reporting and investor relations. Shake Shack Appoints Michelle Hook as Chief Financial Officer
• Neutral Sentiment: Underlying operations show mixed strength: revenue grew ~14.3% year-over-year and restaurant-level profit expanded (SA notes +17% YoY), but those gains were offset by investments and cost pressures that pushed operating margin negative. When Valuation Met Reality (Seeking Alpha)
• Negative Sentiment: Quarterly results missed expectations: reported ~$0.00 EPS vs. consensus ~$0.11 and revenue of $366.7M vs. ~$372M expected; the company reported an operating loss. Those misses are the primary driver of the share decline. Shake Shack shares crater after burger chain reports operating loss (CNBC)
• Negative Sentiment: Management cited demand weakness in large urban markets (notably NYC), winter-storm headwinds, higher beef costs and a faster store-opening cadence that pressured results — all factors investors view as near-term earnings risks. Shake Shack shares shook by sales shock (NY Post)
• Negative Sentiment: Analyst reaction: TD Cowen cut its price target to $76 and moved to a “hold,” reflecting a repricing of risk and limiting near-term upside from current levels.

Insider Transactions at Shake Shack

In related news, insider Stephanie Ann Sentell sold 258 shares of the company’s stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total value of $26,370.18. Following the transaction, the insider owned 15,084 shares in the company, valued at $1,541,735.64. The trade was a 1.68% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is currently owned by insiders.

Shake Shack Stock Performance

Shares of SHAK stock opened at $69.49 on Friday. Shake Shack, Inc. has a 12 month low of $67.21 and a 12 month high of $144.65. The stock has a market cap of $2.97 billion, a PE ratio of 63.75, a price-to-earnings-growth ratio of 3.76 and a beta of 1.78. The company has a current ratio of 1.76, a quick ratio of 1.73 and a debt-to-equity ratio of 0.45. The company’s fifty day moving average price is $94.14 and its 200-day moving average price is $91.01.

Shake Shack (NYSE:SHAK) last announced its earnings results on Thursday, May 7th. The company reported $0.00 EPS for the quarter, missing analysts’ consensus estimates of $0.11 by ($0.11). Shake Shack had a net margin of 3.16% and a return on equity of 11.08%. The business had revenue of $366.74 million for the quarter, compared to the consensus estimate of $372.43 million. During the same quarter last year, the firm posted $0.14 EPS. The business’s quarterly revenue was up 14.3% on a year-over-year basis. On average, equities analysts expect that Shake Shack, Inc. will post 1.4 EPS for the current fiscal year.

Shake Shack 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.