Shake Shack (NYSE:SHAK) Hits New 52-Week Low on Analyst Downgrade

Shake Shack, Inc. (NYSE:SHAK)’s stock price reached a new 52-week low on Friday after BNP Paribas Exane lowered their price target on the stock from $100.00 to $77.00. BNP Paribas Exane currently has an outperform rating on the stock. Shake Shack traded as low as $52.40 and last traded at $52.51, with a volume of 867920 shares traded. The stock had previously closed at $53.36.

A number of other equities analysts also recently weighed in on the stock. Robert W. Baird cut their price target on shares of Shake Shack from $76.00 to $60.00 and set a “neutral” rating on the stock in a research note on Thursday. Zacks Research raised shares of Shake Shack from a “strong sell” rating to a “hold” rating in a research note on Monday, March 9th. JPMorgan Chase & Co. cut their price target on shares of Shake Shack from $100.00 to $85.00 and set a “neutral” rating on the stock in a research note on Friday, May 8th. Morgan Stanley reaffirmed an “equal weight” rating and set a $76.00 price target (down from $115.00) on shares of Shake Shack in a research note on Wednesday. Finally, The Goldman Sachs Group reissued a “buy” rating on shares of Shake Shack in a research report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $94.56.

Insider Buying and Selling

In other news, Director Daniel Harris Meyer purchased 32,258 shares of the stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average cost of $61.88 per share, with a total value of $1,996,125.04. Following the acquisition, the director owned 378,670 shares in the company, valued at approximately $23,432,099.60. This trade represents a 9.31% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Sumaiya Balbale purchased 4,068 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average cost of $61.42 per share, with a total value of $249,856.56. Following the completion of the acquisition, the director owned 13,407 shares in the company, valued at approximately $823,457.94. This represents a 43.56% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders have acquired 50,616 shares of company stock valued at $3,109,782. 8.32% of the stock is owned by corporate insiders.

Trending Headlines about Shake Shack

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

• Negative Sentiment: Shake Shack’s reduced Q2 and FY26 guidance is the main driver behind the stock’s decline, with the company lowering revenue, restaurant-level margin, and EBITDA expectations amid macro uncertainty. Article Title
• Negative Sentiment: Levi & Korsinsky announced multiple investigations into potential securities fraud claims, citing investor losses after Shake Shack’s guidance cuts and subsequent downward revisions. Article Title
• Negative Sentiment: Pomerantz LLP also launched an investor investigation, adding to legal overhang and signaling possible class-action risk for shareholders. Article Title
• Negative Sentiment: Several analysts cut price targets following the guidance reset, including BNP Paribas Exane and Robert W. Baird, reinforcing concerns that near-term earnings expectations have come down. Article Title

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Hilton Head Capital Partners LLC bought a new position in shares of Shake Shack in the 4th quarter worth about $25,000. Geneos Wealth Management Inc. bought a new position in shares of Shake Shack in the 1st quarter worth about $26,000. Assetmark Inc. lifted its position in shares of Shake Shack by 457.6% in the 4th quarter. Assetmark Inc. now owns 368 shares of the company’s stock worth $30,000 after buying an additional 302 shares during the last quarter. UMB Bank n.a. lifted its position in shares of Shake Shack by 42.2% in the 4th quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after buying an additional 116 shares during the last quarter. Finally, Murphy & Mullick Capital Management Corp lifted its position in shares of Shake Shack by 68.5% in the 3rd quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company’s stock worth $38,000 after buying an additional 170 shares during the last quarter. 86.07% of the stock is currently owned by institutional investors.

Shake Shack Stock Performance

The company has a market capitalization of $2.25 billion, a P/E ratio of 53.61, a P/E/G ratio of 2.44 and a beta of 1.63. The stock’s 50-day moving average price is $82.03 and its 200-day moving average price is $86.73. The company has a current ratio of 1.69, a quick ratio of 1.66 and a debt-to-equity ratio of 0.45.

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.