Wells Fargo & Company Issues Positive Forecast for Shake Shack (NYSE:SHAK) Stock Price

Key Points

• Wells Fargo raised Shake Shack’s price target from $65 to $70 while maintaining an “equal weight” rating, implying approximately 2.4% upside from the prior close.
• Analyst sentiment is more positive overall, with a consensus “Moderate Buy” rating and an average price target of $87.22; 16 analysts rate the stock a Buy and 12 rate it a Hold.
• Shake Shack recently exceeded quarterly earnings 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) had its price objective upped by equities research analysts at Wells Fargo & Company from $65.00 to $70.00 in a report released on Wednesday, Benzinga reports. The firm presently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective suggests a potential upside of 2.40% from the company's previous close.

Several other brokerages have also weighed in on SHAK. Guggenheim reiterated a "buy" rating and issued a $90.00 price objective on shares of Shake Shack in a research report on Thursday, October 15th. Robert W. Baird upgraded Shake Shack to a "hold" rating in a research report on Monday, August 24th. Mizuho set a $90.00 target price on Shake Shack in a research report on Thursday, August 6th. Weiss Ratings raised Shake Shack from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, September 9th. Finally, Seaport Research Partners began coverage on shares of Shake Shack in a report on Wednesday, September 16th. They issued a "neutral" rating on the stock. Sixteen investment analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, Shake Shack currently has a consensus rating of "Moderate Buy" and a consensus target price of $87.22.

Shake Shack Trading Down 2.0%

NYSE:SHAK opened at $68.36 on Wednesday. The company's 50 day moving average price is $66.19 and its 200-day moving average price is $68.58. The company has a quick ratio of 1.64, a current ratio of 1.67 and a debt-to-equity ratio of 0.43. The stock has a market cap of $2.93 billion, a price-to-earnings ratio of 72.72, a PEG ratio of 7.87 and a beta of 1.68. Shake Shack has a 52 week low of $51.60 and a 52 week high of $107.46.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.12. The firm had revenue of $417.62 million during the quarter, compared to analysts' expectations of $417.18 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. Shake Shack's revenue was up 17.2% compared to the same quarter last year. During the same period last year, the business earned $0.44 earnings per share. On average, equities research analysts forecast that Shake Shack will post 1.13 earnings per share for the current fiscal year.

Institutional Trading of Shake Shack

A number of hedge funds and other institutional investors have recently bought and sold shares of SHAK. Hilton Head Capital Partners LLC increased its stake in Shake Shack by 65.0% in the first quarter. Hilton Head Capital Partners LLC now owns 513 shares of the company's stock valued at $45,000 after purchasing an additional 202 shares during the last quarter. Murphy & Mullick Capital Management Corp raised its holdings in Shake Shack by 42.5% during the first quarter. Murphy & Mullick Capital Management Corp now owns 738 shares of the company's stock worth $65,000 after purchasing an additional 220 shares in the last quarter. IFP Advisors Inc lifted its position in shares of Shake Shack by 43.0% during the 2nd quarter. IFP Advisors Inc now owns 924 shares of the company's stock worth $52,000 after buying an additional 278 shares during the last quarter. Gamco Investors INC. ET AL lifted its position in shares of Shake Shack by 6.7% during the 1st quarter. Gamco Investors INC. ET AL now owns 6,743 shares of the company's stock worth $597,000 after buying an additional 426 shares during the last quarter. Finally, GAMMA Investing LLC lifted its position in shares of Shake Shack by 50.5% during the 3rd quarter. GAMMA Investing LLC now owns 1,437 shares of the company's stock worth $84,000 after buying an additional 482 shares during the last quarter. 86.07% of the stock is currently owned by institutional investors and hedge funds.

About Shake Shack

Shake Shack Inc operates a fast-casual restaurant chain known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes and beverages. Its menu also includes vegetarian and other specialty items, with offerings varying by location. The company emphasizes hospitality, quality ingredients and restaurant designs intended to support both dine-in and takeout service.

The business began as a temporary hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004.

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