Mizuho Upgrades Shake Shack (NYSE:SHAK) to "Outperform"

Key Points

• Mizuho upgraded Shake Shack from "neutral" to "outperform" and raised its price target to $120 (from $100), implying about a 22.95% upside from the prior close.
• Analyst sentiment is broadly positive with several recent buy/outperform actions and a MarketBeat consensus of "Moderate Buy" and an average target price of $118.70.
• Shake Shack beat quarterly EPS estimates ($0.37 vs. $0.35) while revenue rose 21.8% year‑over‑year, and institutional investors now own roughly 86.1% of the stock.

Shake Shack (NYSE:SHAK - Get Free Report) was upgraded by investment analysts at Mizuho from a "neutral" rating to an "outperform" rating in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has a $120.00 target price on the stock, up from their prior target price of $100.00. Mizuho's price objective points to a potential upside of 22.95% from the company's previous close.

Several other research firms also recently weighed in on SHAK. BNP Paribas Exane started coverage on Shake Shack in a report on Monday, March 30th. They issued an "outperform" rating and a $124.00 price objective for the company. Truist Financial raised 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, March 2nd. Zacks Research upgraded shares of Shake Shack from a "strong sell" rating to a "hold" rating in a report on Monday, March 9th. Barclays lowered their price target on shares of Shake Shack from $115.00 to $110.00 and set an "overweight" rating for the company in a research report on Wednesday, January 7th. Finally, Wolfe Research initiated coverage on shares of Shake Shack in a report on Monday, March 9th. They set an "outperform" rating and a $118.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and fourteen have issued a Hold rating to the company. According to data from MarketBeat.com, Shake Shack currently has a consensus rating of "Moderate Buy" and an average target price of $118.70.

Shake Shack Stock Performance

Shake Shack stock opened at $97.60 on Friday. Shake Shack has a fifty-two week low of $76.51 and a fifty-two week high of $144.65. The company has a market capitalization of $4.17 billion, a PE ratio of 89.54, a P/E/G ratio of 3.93 and a beta of 1.75. The company has a 50 day moving average price of $91.89 and a 200-day moving average price of $90.39. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.73 and a current ratio of 1.76.

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Wellington Management Group LLP lifted its position in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock valued at $242,535,000 after acquiring an additional 450,406 shares during the last quarter. 12 West Capital Management LP increased its position in shares of 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 worth $159,385,000 after purchasing an additional 210,000 shares in the last quarter. State Street Corp increased its position in shares of Shake Shack by 1.1% during the second quarter. State Street Corp now owns 1,470,084 shares of the company's stock worth $206,694,000 after purchasing an additional 15,607 shares in the last quarter. Swedbank AB purchased a new stake in shares of Shake Shack during the 4th quarter valued at $84,092,000. Finally, Van Berkom & Associates Inc. lifted its holdings in shares of Shake Shack by 27.6% during the 4th quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company's stock valued at $74,948,000 after purchasing an additional 199,687 shares during the last quarter. Hedge funds and other institutional investors 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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