Wall Street Zen Upgrades Shake Shack (NYSE:SHAK) to "Hold"

Key Points

• Wall Street Zen upgraded Shake Shack from “sell” to “hold,” while the broader analyst consensus remains “Moderate Buy,” with 16 buy ratings and 12 hold ratings.
• Shake Shack shares opened at $63.74, below the average analyst price target of $89.71; the stock has traded between $51.60 and $107.46 over the past year.
• The company exceeded quarterly expectations, reporting adjusted EPS of $0.43 versus the $0.31 consensus and revenue of $417.62 million, up 17.2% year over year.

Shake Shack (NYSE:SHAK - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other analysts also recently commented on the stock. Morgan Stanley set a $74.00 target price on shares of Shake Shack in a research report on Thursday, August 6th. TD Cowen restated a "hold" rating on shares of Shake Shack in a report on Wednesday, August 5th. DA Davidson lifted their price objective on shares of Shake Shack from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft decreased their price objective on shares of Shake Shack from $105.00 to $93.00 and set a "buy" rating for the company in a report on Thursday, July 9th. Finally, Gordon Haskett lowered their target price on shares of Shake Shack from $90.00 to $70.00 and set a "buy" rating on the stock in a research report on Wednesday, June 3rd. Sixteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $89.71.

Shake Shack Stock Performance

Shares of SHAK stock opened at $63.74 on Friday. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $107.46. The stock's 50-day moving average is $65.68 and its two-hundred day moving average is $74.10. The firm has a market cap of $2.73 billion, a P/E ratio of 67.81, a PEG ratio of 6.82 and a beta of 1.66.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, beating the consensus estimate of $0.31 by $0.12. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%.The business had revenue of $417.62 million during the quarter, compared to analysts' expectations of $417.18 million. During the same quarter in the previous year, the business posted $0.44 EPS. The firm's quarterly revenue was up 17.2% compared to the same quarter last year. Analysts predict that Shake Shack will post 1.12 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors have recently made changes to their positions in SHAK. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its stake in Shake Shack by 4.5% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 22,627 shares of the company's stock valued at $1,995,000 after purchasing an additional 976 shares during the period. Jones Financial Companies Lllp increased its position in Shake Shack by 4,210.3% in the 1st quarter. Jones Financial Companies Lllp now owns 2,500 shares of the company's stock worth $220,000 after buying an additional 2,442 shares during the period. United Services Automobile Association bought a new position in Shake Shack in the 1st quarter worth approximately $219,000. Geneos Wealth Management Inc. acquired a new position in shares of Shake Shack during the first quarter worth approximately $26,000. Finally, Northwestern Mutual Wealth Management Co. lifted its holdings in shares of Shake Shack by 159.7% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 748 shares of the company's stock worth $105,000 after buying an additional 460 shares during the last quarter. 86.07% of the stock is currently owned by institutional investors.

Shake Shack Company Profile

Shake Shack Inc NYSE: SHAK operates a global chain of fast-casual restaurants known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, shakes, and other beverages. Its menu also includes beer and wine at select locations, with an emphasis on premium ingredients and hospitality-focused service.

The company traces its origins to a hot dog cart opened in New York City's Madison Square Park in 2001 as part of a park revitalization project. The first permanent Shake Shack restaurant opened in the park in 2004.

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