Robert W. Baird Upgrades Shake Shack (NYSE:SHAK) to Hold

Key Points

• Robert W. Baird upgraded Shake Shack to “Hold,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $89.74.
• Analyst views are mixed: Wells Fargo and JPMorgan cut their price targets, while DA Davidson raised its target and Stifel upgraded the stock to “Buy.”
• Shake Shack reported quarterly revenue of $417.62 million, up 17.2% year over year, and EPS of $0.43, beating the $0.31 consensus estimate; institutional investors own 86.07% of the company.

Shake Shack (NYSE:SHAK - Get Free Report) was upgraded by Robert W. Baird to a "hold" rating in a note issued to investors on Monday,Zacks.com reports.

Several other research firms also recently issued reports on SHAK. Wells Fargo & Company dropped their price target on Shake Shack from $80.00 to $65.00 and set an "equal weight" rating on the stock in a research note on Wednesday, June 3rd. JPMorgan Chase & Co. dropped their target price on Shake Shack from $100.00 to $85.00 and set a "neutral" rating on the stock in a research report on Friday, May 8th. DA Davidson upped their price target on Shake Shack from $70.00 to $85.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. TD Cowen reiterated a "hold" rating on shares of Shake Shack in a report on Wednesday, August 5th. Finally, Stifel Nicolaus raised shares of Shake Shack from a "hold" rating to a "buy" rating and cut their price objective for the stock from $105.00 to $85.00 in a research report on Friday, May 8th. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $89.74.

Shake Shack Price Performance

Shares of SHAK opened at $74.00 on Monday. The stock has a 50 day simple moving average of $62.72 and a 200 day simple moving average of $76.29. Shake Shack has a 52-week low of $51.60 and a 52-week high of $107.49. The company has a debt-to-equity ratio of 0.43, a quick ratio of 1.64 and a current ratio of 1.67. The firm has a market capitalization of $3.17 billion, a PE ratio of 78.72, a P/E/G ratio of 8.25 and a beta of 1.63.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The firm had revenue of $417.62 million for the quarter, compared to the consensus estimate of $417.18 million. During the same period last year, the company posted $0.44 EPS. The business's quarterly revenue was up 17.2% on a year-over-year basis. Sell-side analysts predict that Shake Shack will post 1.13 EPS for the current fiscal year.

Institutional Investors Weigh In On Shake Shack

Several large investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its position in Shake Shack by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,627 shares of the company's stock worth $1,995,000 after acquiring an additional 976 shares in the last quarter. Jones Financial Companies Lllp increased its stake in shares of Shake Shack by 4,210.3% during the 1st quarter. Jones Financial Companies Lllp now owns 2,500 shares of the company's stock worth $220,000 after purchasing an additional 2,442 shares during the last quarter. United Services Automobile Association bought a new stake in shares of Shake Shack in the 1st quarter valued at about $219,000. Geneos Wealth Management Inc. bought a new stake in shares of Shake Shack in the 1st quarter valued at about $26,000. Finally, Northwestern Mutual Wealth Management Co. lifted its stake in Shake Shack by 159.7% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 748 shares of the company's stock valued at $105,000 after purchasing an additional 460 shares during the last quarter. Institutional investors and hedge funds own 86.07% of the company's stock.

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.

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