Shake Shack Inc (NYSE:SHAK), today announced the commencement of a secondary offering of its Class A common stock (the “Offering”) pursuant to a registration statement filed on Form S-1 with the Securities and Exchange Commission (the “SEC”). The Selling Stockholders intend to offer 4,000,000 shares of the Company’s Class A Common Stock for sale. Additionally, the Selling Stockholders intend to grant the underwriters a 30-day option to purchase up to 600,000 additional shares of the Company’s Class A Common Stock. The Company will not receive any proceeds from the sale of the shares by the selling stockholders.
J.P. Morgan Securities LLC is acting as sole lead book-running manager in the proposed offering. Morgan Stanley & Co. LLC, Barclays Capital Inc.,Goldman, Sachs & Co., Jefferies LLC, William Blair & Company, L.L.C. and Stifel are acting as book-running managers in the proposed offering.
The offering will be made only by means of a prospectus. A copy of the preliminary prospectus related to the offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling toll-free at (866) 803-9204.
A registration statement on Form S-1 relating to these securities has been filed with the SEC but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. (Original Source)
Shares of Shake Shack are up 6.64% to $76.40 in after-hours trading. SHAK has a 1-year high of $73.10 and a 1-year low of $38.64. The stock’s 50-day moving average is $59.05 and its 200-day moving average is $58.75.
On the ratings front, Shake Shack has been the subject of a number of recent research reports. In a report issued on July 9, Goldman Sachs analyst Karen Holthouse downgraded SHAK to Sell, with a price target of $37, which reflects a potential downside of -47.6% from last closing price. Separately, on July 7, Morgan Stanley’s John Glass downgraded the stock to Sell and has a price target of $38.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Karen Holthouse and John Glass have a total average return of 12.2% and 14.1% respectively. Holthouse has a success rate of 75.0% and is ranked #1059 out of 3728 analysts, while Glass has a success rate of 71.9% and is ranked #612.
Overall, 6 research analysts have assigned a Hold rating and one research analyst has given a a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $51.00 which is -27.8% under where the stock opened today.
Shake Shack Inc is a roadside burger stand. The Company along with its subsidiaries operates and licenses restaurants in the food service industry, serving hamburgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer and wine.