Shake Shack, Inc. (NYSE:SHAK) Receives Consensus Recommendation of “Moderate Buy” from Analysts

Shares of Shake Shack, Inc. (NYSE:SHAK) have been assigned an average rating of “Moderate Buy” from the twenty-seven analysts that are covering the stock, MarketBeat reports. Fourteen analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price objective among brokerages that have covered the stock in the last year is $119.2174.

A number of brokerages recently weighed in on SHAK. Raymond James Financial set a $140.00 price objective on Shake Shack in a research report on Wednesday, January 21st. Bank of America raised Shake Shack from an “underperform” rating to a “neutral” rating and raised their price objective for the company from $88.00 to $101.00 in a research report on Tuesday, March 31st. Zacks Research raised Shake Shack from a “strong sell” rating to a “hold” rating in a research report on Monday, March 9th. Wolfe Research began coverage on Shake Shack in a research report on Monday, March 9th. They set an “outperform” rating and a $118.00 price objective on the stock. Finally, Morgan Stanley raised Shake Shack from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $115.00 to $125.00 in a research report on Tuesday, January 20th.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Shake Shack

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Nordea Investment Management AB raised its stake in Shake Shack by 36.6% in the third quarter. Nordea Investment Management AB now owns 106,317 shares of the company’s stock valued at $9,851,000 after buying an additional 28,487 shares during the last quarter. Divisadero Street Capital Management LP raised its stake in Shake Shack by 407.8% in the third quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company’s stock valued at $5,334,000 after buying an additional 45,762 shares during the last quarter. Y Intercept Hong Kong Ltd purchased a new stake in Shake Shack in the third quarter valued at about $8,416,000. Public Sector Pension Investment Board raised its stake in Shake Shack by 14.5% in the third quarter. Public Sector Pension Investment Board now owns 156,998 shares of the company’s stock valued at $14,697,000 after buying an additional 19,889 shares during the last quarter. Finally, 12 West Capital Management LP raised its stake in 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 valued at $164,154,000 after buying an additional 210,000 shares during the last quarter. 86.07% of the stock is currently owned by hedge funds and other institutional investors.

Shake Shack Price Performance

SHAK opened at $103.62 on Tuesday. Shake Shack has a 12-month low of $76.51 and a 12-month high of $144.65. 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 business’s fifty day simple moving average is $92.80 and its 200-day simple moving average is $90.59. The company has a market capitalization of $4.42 billion, a price-to-earnings ratio of 95.06, a PEG ratio of 3.99 and a beta of 1.75.

Shake Shack (NYSE:SHAK) last posted its quarterly earnings results on Thursday, February 26th. The company reported $0.37 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.35 by $0.02. Shake Shack had a return on equity of 11.08% and a net margin of 3.16%.The business had revenue of $400.53 million for the quarter, compared to the consensus estimate of $402.06 million. During the same quarter in the prior year, the company earned $0.26 EPS. The business’s revenue was up 21.8% compared to the same quarter last year. On average, equities research analysts anticipate that Shake Shack will post 1.26 earnings per share for the current fiscal year.

About Shake Shack

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.