JPMorgan Chase Downgrades Shake Shack (SHAK) to Underweight

JPMorgan Chase cut shares of Shake Shack (NYSE:SHAK) from a neutral rating to an underweight rating in a research note released on Monday, May 7th, Marketbeat Ratings reports. The brokerage currently has $49.00 target price on the stock.

A number of other equities analysts also recently issued reports on SHAK. Barclays reissued an equal weight rating and issued a $49.00 price target (up from $36.00) on shares of Shake Shack in a research note on Tuesday, January 16th. Wedbush reaffirmed a hold rating and set a $38.00 target price on shares of Shake Shack in a research note on Friday, February 16th. SunTrust Banks set a $54.00 price target on shares of Shake Shack and gave the company a buy rating in a report on Friday, February 16th. TheStreet cut shares of Shake Shack from a c rating to a d+ rating in a report on Friday, March 16th. Finally, ValuEngine upgraded shares of Shake Shack from a hold rating to a buy rating in a report on Saturday, April 7th. Two analysts have rated the stock with a sell rating, five have issued a hold rating, three have assigned a buy rating and three have issued a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and an average price target of $45.63.

Shake Shack stock opened at $57.98 on Monday. Shake Shack has a fifty-two week low of $58.24 and a fifty-two week high of $59.37. The firm has a market capitalization of $2.16 billion, a PE ratio of 101.72, a PEG ratio of 4.83 and a beta of 1.26.

Shake Shack (NYSE:SHAK) last posted its quarterly earnings results on Thursday, May 3rd. The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.08 by $0.07. Shake Shack had a negative net margin of 0.27% and a positive return on equity of 9.17%. The business had revenue of $99.20 million during the quarter, compared to analyst estimates of $96.77 million. During the same period in the prior year, the business posted $0.10 earnings per share. The company’s revenue was up 29.3% on a year-over-year basis. research analysts expect that Shake Shack will post 0.54 EPS for the current year.

In other news, Director Jonathan D. Sokoloff sold 627,440 shares of the business’s stock in a transaction dated Friday, May 11th. The shares were sold at an average price of $58.81, for a total value of $36,899,746.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Randall J. Garutti sold 40,000 shares of the business’s stock in a transaction that occurred on Monday, February 26th. The stock was sold at an average price of $38.15, for a total transaction of $1,526,000.00. The disclosure for this sale can be found here. Over the last three months, insiders sold 963,440 shares of company stock valued at $51,397,444. 30.18% of the stock is owned by corporate insiders.

A number of institutional investors have recently modified their holdings of SHAK. Comerica Bank boosted its holdings in shares of Shake Shack by 5.5% in the 1st quarter. Comerica Bank now owns 21,052 shares of the company’s stock valued at $908,000 after acquiring an additional 1,095 shares during the last quarter. Dimensional Fund Advisors LP boosted its holdings in shares of Shake Shack by 1.3% in the 3rd quarter. Dimensional Fund Advisors LP now owns 102,486 shares of the company’s stock valued at $3,406,000 after acquiring an additional 1,324 shares during the last quarter. Thrivent Financial for Lutherans boosted its holdings in shares of Shake Shack by 13.4% in the 1st quarter. Thrivent Financial for Lutherans now owns 12,766 shares of the company’s stock valued at $531,000 after acquiring an additional 1,504 shares during the last quarter. Prudential Financial Inc. boosted its holdings in shares of Shake Shack by 5.5% in the 1st quarter. Prudential Financial Inc. now owns 31,860 shares of the company’s stock valued at $1,326,000 after acquiring an additional 1,650 shares during the last quarter. Finally, New York State Common Retirement Fund boosted its holdings in shares of Shake Shack by 7.2% in the 1st quarter. New York State Common Retirement Fund now owns 25,200 shares of the company’s stock valued at $1,049,000 after acquiring an additional 1,700 shares during the last quarter. Institutional investors and hedge funds own 82.18% of the company’s stock.

About Shake Shack

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 December 27, 2017, it had 159 Shacks, including 90 domestic company-operated Shacks, 10 domestic licensed Shacks, and 59 international licensed Shacks.

Analyst Recommendations for Shake Shack (NYSE:SHAK)

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