DA Davidson Begins Coverage on Shake Shack (NYSE:SHAK)

Key Points

• DA Davidson initiated coverage on Shake Shack with a Buy rating and a $125 price target, implying roughly a 28.9% upside from the prior close.
• Analyst consensus remains mixed—MarketBeat shows an average rating of Hold with a consensus price target of $116.57, backed by 1 Strong Buy, 9 Buy, 13 Hold and 2 Sell ratings.
• Shake Shack recently beat EPS estimates ($0.37 vs. $0.35) and reported revenue up 21.8% year‑over‑year, though the stock trades at a high valuation (PE ~88.95) with a market cap around $4.14 billion.

Investment analysts at DA Davidson initiated coverage on shares of Shake Shack (NYSE:SHAK - Get Free Report) in a research note issued on Friday,Benzinga reports. The firm set a "buy" rating and a $125.00 price target on the stock. DA Davidson's target price suggests a potential upside of 28.92% from the company's previous close.

Several other analysts have also weighed in on SHAK. Raymond James Financial set a $140.00 price objective on Shake Shack in a report on Wednesday, January 21st. JPMorgan Chase & Co. upgraded shares of Shake Shack from an "underweight" rating to a "neutral" rating and decreased their price target for the stock from $95.00 to $90.00 in a research note on Thursday, December 18th. TD Cowen boosted their price target on shares of Shake Shack from $100.00 to $105.00 and gave the company a "hold" rating in a report on Thursday, February 26th. Truist Financial lifted their target price on shares of Shake Shack from $144.00 to $148.00 and gave the company a "buy" rating in a research report on Monday. Finally, Wells Fargo & Company increased their price target on shares of Shake Shack from $90.00 to $100.00 and gave the stock an "equal weight" rating in a research report on Friday, February 27th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $116.57.

Shake Shack Price Performance

Shares of Shake Shack stock opened at $96.96 on Friday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.76 and a quick ratio of 1.73. The company has a market cap of $4.14 billion, a PE ratio of 88.95, a price-to-earnings-growth ratio of 5.22 and a beta of 1.73. The firm has a fifty day moving average price of $92.10 and a two-hundred day moving average price of $92.51. Shake Shack has a fifty-two week low of $72.93 and a fifty-two week high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.37 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.02. Shake Shack had a net margin of 3.16% and a return on equity of 11.08%. The business had revenue of $400.53 million during the quarter, compared to analysts' expectations of $402.06 million. During the same quarter last year, the company earned $0.26 earnings per share. The firm's revenue was up 21.8% on a year-over-year basis. Analysts expect that Shake Shack will post 1.26 EPS for the current year.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Swedbank AB acquired a new stake in shares of Shake Shack in the fourth quarter valued at $84,092,000. Holocene Advisors LP acquired a new stake in Shake Shack in the 2nd quarter valued at about $115,432,000. Adage Capital Partners GP L.L.C. acquired a new stake in Shake Shack in the 4th quarter valued at about $40,829,000. Wellington Management Group LLP raised its stake in shares of Shake Shack by 21.0% in the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock worth $242,535,000 after acquiring an additional 450,406 shares during the last quarter. Finally, Marshall Wace LLP lifted its position in shares of Shake Shack by 285.2% during the third quarter. Marshall Wace LLP now owns 586,999 shares of the company's stock worth $54,949,000 after purchasing an additional 434,625 shares in the last quarter. Institutional investors and hedge funds own 86.07% of the company's stock.

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.

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