Shake Shack, Inc. (NYSE:SHAK) Receives $107.92 Consensus PT from Analysts

Shake Shack, Inc. (NYSE:SHAK) has received a consensus rating of “Moderate Buy” from the twenty-eight analysts that are presently covering the firm, MarketBeat Ratings reports. Thirteen research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $107.0833.

Several equities research analysts have weighed in on SHAK shares. Zacks Research upgraded shares of Shake Shack from a “strong sell” rating to a “hold” rating in a report on Monday, March 9th. Raymond James Financial set a $140.00 target price on shares of Shake Shack in a report on Wednesday, January 21st. Mizuho set a $100.00 target price on shares of Shake Shack in a report on Friday. BNP Paribas Exane cut their target price on shares of Shake Shack from $124.00 to $100.00 and set an “outperform” rating on the stock in a report on Friday. Finally, Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $117.00 target price on shares of Shake Shack in a report on Wednesday, April 15th.

Shake Shack Trading Down 8.3%

SHAK opened at $64.33 on Friday. The firm’s fifty day moving average is $93.01 and its two-hundred day moving average is $90.64. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.66 and a current ratio of 1.69. The firm has a market cap of $2.75 billion, a PE ratio of 65.64, a price-to-earnings-growth ratio of 2.93 and a beta of 1.78. Shake Shack has a twelve month low of $63.51 and a twelve month high of $144.65.

Shake Shack (NYSE:SHAK) last posted its earnings results on Thursday, May 7th. The company reported $0.00 earnings per share for the quarter, missing the consensus estimate of $0.11 by ($0.11). The firm had revenue of $366.74 million during the quarter, compared to analyst estimates of $372.43 million. Shake Shack had a return on equity of 9.62% and a net margin of 2.76%.The company’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same quarter last year, the business posted $0.14 earnings per share. Equities research analysts anticipate that Shake Shack will post 1.3 EPS for the current year.

Insiders Place Their Bets

In other Shake Shack news, insider Stephanie Ann Sentell sold 258 shares of the stock in a transaction on Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total value of $26,370.18. Following the sale, the insider directly owned 15,084 shares in the company, valued at approximately $1,541,735.64. This trade represents a 1.68% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 8.32% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new stake in shares of Shake Shack during the fourth quarter worth $25,000. Geneos Wealth Management Inc. acquired a new stake in shares of Shake Shack during the first quarter worth $26,000. Assetmark Inc. raised its holdings in shares of Shake Shack by 457.6% during the fourth quarter. Assetmark Inc. now owns 368 shares of the company’s stock worth $30,000 after acquiring an additional 302 shares during the period. Global Retirement Partners LLC grew its position in Shake Shack by 83.7% in the third quarter. Global Retirement Partners LLC now owns 327 shares of the company’s stock valued at $31,000 after purchasing an additional 149 shares in the last quarter. Finally, UMB Bank n.a. grew its position in Shake Shack by 42.2% in the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock valued at $32,000 after purchasing an additional 116 shares in the last quarter. 86.07% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Shake Shack

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

• Positive Sentiment: Shake Shack is promoting traffic with National Burger Month offers, including free burger deals and code-based promotions that could support near-term sales. Shake Shack offers free burgers through May for National Burger Month
• Positive Sentiment: Shake Shack appointed former Portillo’s CFO Michelle Hook as finance chief, a move that may improve execution and financial discipline. Shake Shack appoints former Portillo’s CFO as it finance chief
• Neutral Sentiment: One article highlighted a behind-the-scenes drive-thru process Shake Shack uses to keep food tasting fresh, which is more of a brand/operations note than a major market catalyst. The Drive-Thru Trick Shake Shack Uses So Your Food Tastes Extra Fresh
• Neutral Sentiment: Shake Shack said it is still pursuing growth investments despite a volatile backdrop, suggesting management remains focused on expansion rather than pulling back. Shake Shack Eyes Growth Investments Amid Volatility
• Neutral Sentiment: Guggenheim lowered its price target on Shake Shack but kept a buy rating, indicating continued upside potential even after trimming expectations. Shake Shack price target lowered by Guggenheim
• Negative Sentiment: Several analysts turned more cautious on SHAK, with JPMorgan, BNP Paribas Exane, Wells Fargo, and Barclays all reducing price targets or expectations, which likely weighed on the stock. JPMorgan Chase & Co. Issues Pessimistic Forecast for Shake Shack (NYSE:SHAK) Stock Price BNP Paribas Exane Lowers Shake Shack (NYSE:SHAK) Price Target to $100.00 Wells Fargo & Company Lowers Shake Shack (NYSE:SHAK) Price Target to $80.00 Barclays Has Lowered Expectations for Shake Shack (NYSE:SHAK) Stock Price
• Negative Sentiment: Recent coverage says weather and beef-cost pressures hurt earnings, reinforcing concerns that Shake Shack’s margins and near-term growth are being squeezed. Shake Shack stock plunges as weather and beef costs pressure earnings
• Negative Sentiment: A comparison piece with McDonald’s framed Shake Shack as facing more growth strain, adding to the narrative that the company may be struggling versus larger rivals. McDonald’s value push contrasts with Shake Shack’s growth strain

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.