Fred Alger Management LLC Cuts Stake in Shake Shack Inc. (NYSE:SHAK)

Fred Alger Management LLC cut its holdings in Shake Shack Inc. (NYSE:SHAK) by 56.8% in the third quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 125,852 shares of the company’s stock after selling 165,775 shares during the quarter. Fred Alger Management LLC owned approximately 0.30% of Shake Shack worth $12,989,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in SHAK. Dimensional Fund Advisors LP lifted its position in shares of Shake Shack by 9.0% in the 2nd quarter. Dimensional Fund Advisors LP now owns 801,003 shares of the company’s stock worth $72,088,000 after purchasing an additional 66,090 shares during the period. Champlain Investment Partners LLC raised its stake in Shake Shack by 4.7% in the third quarter. Champlain Investment Partners LLC now owns 614,747 shares of the company’s stock worth $63,448,000 after buying an additional 27,707 shares in the last quarter. Armistice Capital LLC lifted its holdings in Shake Shack by 69.1% during the second quarter. Armistice Capital LLC now owns 579,904 shares of the company’s stock worth $52,191,000 after buying an additional 236,950 shares during the period. Marshall Wace LLP boosted its position in Shake Shack by 101.2% during the 2nd quarter. Marshall Wace LLP now owns 544,336 shares of the company’s stock valued at $48,990,000 after acquiring an additional 273,822 shares in the last quarter. Finally, Renaissance Technologies LLC boosted its position in Shake Shack by 41.9% during the 2nd quarter. Renaissance Technologies LLC now owns 437,600 shares of the company’s stock valued at $39,384,000 after acquiring an additional 129,200 shares in the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Shake Shack Stock Performance

Shares of SHAK opened at $133.55 on Friday. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.98 and a current ratio of 2.01. The stock has a 50-day moving average of $115.98 and a two-hundred day moving average of $102.14. The stock has a market cap of $5.67 billion, a P/E ratio of 785.59, a P/E/G ratio of 3.01 and a beta of 1.81. Shake Shack Inc. has a one year low of $59.94 and a one year high of $134.90.

Shake Shack (NYSE:SHAK) last released its earnings results on Wednesday, October 30th. The company reported $0.25 EPS for the quarter, topping analysts’ consensus estimates of $0.20 by $0.05. Shake Shack had a return on equity of 6.28% and a net margin of 0.68%. The firm had revenue of $316.92 million during the quarter, compared to the consensus estimate of $316.03 million. During the same quarter in the previous year, the company posted $0.17 earnings per share. The company’s revenue was up 14.7% compared to the same quarter last year. As a group, research analysts predict that Shake Shack Inc. will post 0.82 EPS for the current year.

Insider Buying and Selling at Shake Shack

In other news, Director Daniel Harris Meyer sold 10,000 shares of the company’s stock in a transaction dated Friday, October 4th. The stock was sold at an average price of $110.08, for a total value of $1,100,800.00. Following the sale, the director now owns 460,337 shares in the company, valued at $50,673,896.96. This represents a 2.13 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Katherine Irene Fogertey sold 321 shares of Shake Shack stock in a transaction that occurred on Wednesday, October 2nd. The shares were sold at an average price of $103.93, for a total value of $33,361.53. Following the transaction, the chief financial officer now owns 36,180 shares of the company’s stock, valued at approximately $3,760,187.40. This represents a 0.88 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 63,433 shares of company stock worth $7,654,856. Company insiders own 9.73% of the company’s stock.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on SHAK. TD Cowen restated a “buy” rating and set a $125.00 price objective on shares of Shake Shack in a research note on Wednesday, September 18th. Bank of America increased their price target on shares of Shake Shack from $104.00 to $116.00 and gave the company a “neutral” rating in a research report on Monday, August 19th. Oppenheimer raised their price target on shares of Shake Shack from $122.00 to $135.00 and gave the company an “outperform” rating in a report on Monday, October 28th. Deutsche Bank Aktiengesellschaft reiterated a “hold” rating and set a $115.00 price objective on shares of Shake Shack in a research note on Wednesday, August 28th. Finally, Robert W. Baird raised their target price on shares of Shake Shack from $93.00 to $105.00 and gave the company a “neutral” rating in a research note on Friday, August 2nd. Two investment analysts have rated the stock with a sell rating, nine have issued a hold rating, six have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $112.94.

Shake Shack Profile

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.