Shake Shack, Inc. (NYSE:SHAK) Stock Rated "Moderate Buy" by Wall Street Analysts

Key Points

• Wall Street analysts rate Shake Shack “Moderate Buy.” Sixteen of 28 analysts recommend buying the stock, while 12 rate it a hold; the average 12-month price target is $87.22.
• Several major brokerages recently lowered their price targets or maintained neutral ratings, including UBS, JPMorgan Chase and Piper Sandler, whose target stands at $66.
• Shake Shack reported quarterly EPS of $0.43, exceeding the $0.31 consensus estimate, while revenue rose 17.2% year over year to $417.62 million. Institutional investors own 86.07% of the company.

Shares of Shake Shack, Inc. (NYSE:SHAK - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-eight research firms that are covering the firm, Marketbeat Ratings reports. Twelve analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $87.22.

A number of equities research analysts have commented on the stock. UBS Group cut their target price on shares of Shake Shack from $79.00 to $68.00 and set a "neutral" rating for the company in a research report on Monday, August 3rd. Morgan Stanley set a $74.00 price target on Shake Shack in a report on Thursday, August 6th. Robert W. Baird raised Shake Shack to a "hold" rating in a report on Monday, August 24th. JPMorgan Chase & Co. cut their price objective on Shake Shack from $77.00 to $75.00 and set a "neutral" rating for the company in a report on Tuesday, September 29th. Finally, Piper Sandler reduced their price objective on Shake Shack from $79.00 to $66.00 and set a "neutral" rating for the company in a research report on Tuesday, July 14th.

Institutional Investors Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently made changes to their positions in SHAK. 12 West Capital Management LP grew its position in Shake Shack by 12.0% during the fourth quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company's stock valued at $159,385,000 after buying an additional 210,000 shares during the period. Bank of America Corp DE raised its position in Shake Shack by 9.3% in the first quarter. Bank of America Corp DE now owns 899,013 shares of the company's stock worth $79,536,000 after acquiring an additional 76,724 shares during the period. Dimensional Fund Advisors LP raised its position in Shake Shack by 2.5% in the first quarter. Dimensional Fund Advisors LP now owns 670,111 shares of the company's stock worth $59,276,000 after acquiring an additional 16,439 shares during the period. Cannell & Spears LLC boosted its stake in shares of Shake Shack by 27.4% during the 1st quarter. Cannell & Spears LLC now owns 452,694 shares of the company's stock worth $40,022,000 after acquiring an additional 97,446 shares during the last quarter. Finally, Wasatch Advisors LP boosted its stake in shares of Shake Shack by 16.5% during the 1st quarter. Wasatch Advisors LP now owns 407,283 shares of the company's stock worth $36,032,000 after acquiring an additional 57,612 shares during the last quarter. Hedge funds and other institutional investors own 86.07% of the company's stock.

Shake Shack Price Performance

Shares of NYSE:SHAK opened at $62.48 on Tuesday. 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 cap of $2.67 billion, a price-to-earnings ratio of 66.47, a price-to-earnings-growth ratio of 6.67 and a beta of 1.68. The business has a 50-day simple moving average of $65.93 and a two-hundred day simple moving average of $70.05. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $107.46.

Shake Shack (NYSE:SHAK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 quarter last year, the firm posted $0.44 EPS. The business's quarterly revenue was up 17.2% compared to the same quarter last year. On average, analysts expect that Shake Shack will post 1.13 earnings per share for the current year.

Shake Shack Company Profile

Shake Shack Inc operates a fast-casual restaurant brand known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes, and beverages including beer and wine at select locations. Its menu emphasizes premium ingredients and includes vegetarian and other non-meat options.

The company began as a seasonal hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004. Shake Shack has since expanded through a combination of company-operated and licensed restaurants, with locations across the United States and in international markets, including parts of Asia, Europe and the Middle East.

Shake Shack also offers digital ordering, delivery, catering and merchandise.

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