Shake Shack (NYSE:SHAK) Upgraded at Zacks Research

Shake Shack (NYSE:SHAK) was upgraded by investment analysts at Zacks Research from a “strong sell” rating to a “hold” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other equities analysts have also recently issued reports on the stock. Guggenheim cut their target price on shares of Shake Shack from $120.00 to $100.00 and set a “buy” rating for the company in a research report on Monday, May 11th. Piper Sandler lowered their price target on shares of Shake Shack from $79.00 to $66.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 14th. Oppenheimer set a $82.00 price objective on shares of Shake Shack and gave the stock an “outperform” rating in a research note on Tuesday, June 2nd. JPMorgan Chase & Co. cut their price objective on Shake Shack from $100.00 to $85.00 and set a “neutral” rating for the company in a research report on Friday, May 8th. Finally, DA Davidson upped their target price on Shake Shack from $70.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday. Fifteen equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Shake Shack currently has a consensus rating of “Moderate Buy” and an average target price of $89.74.

Shake Shack Trading Down 5.6%

Shares of SHAK stock opened at $70.17 on Wednesday. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $114.39. The stock has a market cap of $3.00 billion, a P/E ratio of 74.65, a P/E/G ratio of 5.90 and a beta of 1.63. The business has a fifty day simple moving average of $58.50 and a 200-day simple moving average of $78.03. The company has a quick ratio of 1.66, a current ratio of 1.67 and a debt-to-equity ratio of 0.43.

Shake Shack (NYSE:SHAK) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. The business had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business’s revenue for the quarter was up 17.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.44 EPS. On average, analysts forecast that Shake Shack will post 1.1 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Josh Silverman bought 8,290 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average price of $60.38 per share, for a total transaction of $500,550.20. Following the completion of the transaction, the director owned 8,290 shares in the company, valued at $500,550.20. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Robert Lynch bought 5,000 shares of the stock in a transaction on Friday, May 15th. The stock was purchased at an average cost of $60.39 per share, with a total value of $301,950.00. Following the completion of the purchase, the chief executive officer directly owned 77,845 shares in the company, valued at $4,701,059.55. This trade represents a 6.86% increase in their position. The disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have acquired 50,616 shares of company stock valued at $3,109,782. 8.32% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Wealthcare Advisory Partners LLC grew its position in shares of Shake Shack by 6.4% in the second quarter. Wealthcare Advisory Partners LLC now owns 13,080 shares of the company’s stock valued at $733,000 after purchasing an additional 786 shares during the period. Gradient Investments LLC lifted its position in Shake Shack by 14.3% during the second quarter. Gradient Investments LLC now owns 22,775 shares of the company’s stock worth $1,276,000 after buying an additional 2,858 shares during the period. Assenagon Asset Management S.A. lifted its position in Shake Shack by 602.5% during the second quarter. Assenagon Asset Management S.A. now owns 217,617 shares of the company’s stock worth $12,191,000 after buying an additional 186,641 shares during the period. CoreCap Advisors LLC boosted its stake in Shake Shack by 181.1% in the 2nd quarter. CoreCap Advisors LLC now owns 1,088 shares of the company’s stock worth $61,000 after buying an additional 701 shares during the last quarter. Finally, Bank of America Corp DE boosted its stake in Shake Shack by 9.3% in the 1st quarter. Bank of America Corp DE now owns 899,013 shares of the company’s stock worth $79,536,000 after buying an additional 76,724 shares during the last quarter. Hedge funds and other institutional investors own 86.07% of the company’s stock.

More Shake Shack News

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

• Positive Sentiment: Activist investor involvement: Starboard Value disclosed a stake worth several hundred million dollars. The investment may increase pressure for operational improvements, margin expansion or other shareholder-friendly actions, initially supporting investor sentiment. Starboard Value discloses a sizable Shake Shack stake
• Positive Sentiment: Analysts raised price targets: DA Davidson lifted its target from $70 to $85 and upgraded the stock to “buy,” while BNP Paribas Exane raised its target from $77 to $81 and assigned an “outperform” rating. The revisions suggest analysts see meaningful upside despite recent volatility. Shake Shack analyst price-target revisions
• Positive Sentiment: Quarterly results exceeded expectations: Second-quarter earnings were $0.43 per share versus the $0.31 consensus estimate, while revenue reached $417.62 million, essentially matching estimates and increasing 17.2% year over year. Shake Shack also expects fiscal 2026 revenue of approximately $1.6 billion to $1.7 billion and plans to open 60 to 65 company-operated restaurants. Shake Shack Q2 earnings and revenue results
• Neutral Sentiment: Expansion and brand coverage: New restaurants in Highland Village and Stuyvesant Plaza, along with favorable consumer coverage of Shake Shack’s frozen custard, support continued brand growth but are unlikely to materially change near-term earnings expectations. Shake Shack Highland Village opening
• Negative Sentiment: Margin pressure remains the key concern: Beef inflation and higher operating expenses caused profit to slip from $0.44 per share a year ago to $0.43, despite strong revenue growth. Management’s shift to annual-only guidance also reduces near-term visibility, while the stock’s high earnings multiple leaves less room for execution disappointments. Shake Shack revenue rises while profit slips

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.