Raymond James Financial Reaffirms Strong-Buy Rating for Shake Shack (NYSE:SHAK)

Key Points

• Raymond James Financial has reaffirmed a "strong-buy" rating for Shake Shack, setting a price target of $160, which indicates a potential upside of 43.52% from its previous close.
• Shake Shack's stock has experienced a decline of 7.4%, trading at $111.48, while its market cap stands at $4.76 billion with a one-year trading range between $72.93 and $144.65.
• Analyst ratings show a mixed outlook with one "strong buy," six "buy," fourteen "hold," and two "sell" ratings, reflecting varying levels of confidence among analysts.

Shake Shack (NYSE:SHAK - Get Free Report)'s stock had its "strong-buy" rating reissued by research analysts at Raymond James Financial in a research note issued on Friday,Benzinga reports. They currently have a $160.00 price objective on the stock, down from their prior price objective of $165.00. Raymond James Financial's price target would suggest a potential upside of 43.52% from the stock's previous close.

Other analysts also recently issued reports about the stock. Truist Financial upped their price objective on shares of Shake Shack from $150.00 to $160.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. JPMorgan Chase & Co. raised their price objective on shares of Shake Shack from $100.00 to $110.00 and gave the company an "underweight" rating in a research report on Wednesday, June 25th. Morgan Stanley raised their target price on shares of Shake Shack from $109.00 to $122.00 and gave the company an "equal weight" rating in a research note on Monday, July 14th. Sanford C. Bernstein set a $166.00 target price on shares of Shake Shack and gave the company an "overweight" rating in a research note on Thursday, June 26th. Finally, Bank of America lifted their price objective on shares of Shake Shack from $134.00 to $148.00 and gave the stock a "neutral" rating in a research note on Friday, July 18th. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, six have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat, Shake Shack has a consensus rating of "Hold" and an average target price of $131.10.

Shake Shack Stock Down 7.4%

Shake Shack stock traded down $8.86 during midday trading on Friday, hitting $111.48. 227,835 shares of the stock were exchanged, compared to its average volume of 1,454,157. Shake Shack has a 1 year low of $72.93 and a 1 year high of $144.65. The firm has a market cap of $4.76 billion, a P/E ratio of 400.84, a P/E/G ratio of 3.30 and a beta of 1.77. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.91 and a quick ratio of 1.88. The company has a 50 day moving average price of $132.79 and a two-hundred day moving average price of $111.94.

Shake Shack (NYSE:SHAK - Get Free Report) last released its earnings results on Thursday, July 31st. The company reported $0.44 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.07. Shake Shack had a net margin of 0.97% and a return on equity of 8.45%. The business had revenue of $356.47 million for the quarter, compared to the consensus estimate of $352.56 million. During the same period in the previous year, the firm earned $0.27 EPS. The business's revenue for the quarter was up 12.6% on a year-over-year basis. On average, sell-side analysts predict that Shake Shack will post 1.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Katherine Irene Fogertey sold 3,956 shares of the company's stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $127.49, for a total transaction of $504,350.44. Following the sale, the chief financial officer owned 35,750 shares of the company's stock, valued at $4,557,767.50. This represents a 9.96% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Daniel Harris Meyer sold 20,000 shares of the stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $140.07, for a total transaction of $2,801,400.00. Following the completion of the sale, the director directly owned 367,984 shares in the company, valued at $51,543,518.88. This trade represents a 5.15% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 87,391 shares of company stock valued at $11,869,925. 9.73% of the stock is owned by company insiders.

Hedge Funds Weigh In On Shake Shack

Several institutional investors have recently made changes to their positions in the company. Cambridge Investment Research Advisors Inc. grew its holdings in shares of Shake Shack by 157.3% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 5,957 shares of the company's stock worth $525,000 after buying an additional 3,642 shares in the last quarter. Janus Henderson Group PLC increased its stake in Shake Shack by 6.2% during the fourth quarter. Janus Henderson Group PLC now owns 17,064 shares of the company's stock worth $2,216,000 after purchasing an additional 1,000 shares during the period. Bessemer Group Inc. increased its stake in Shake Shack by 60.7% during the first quarter. Bessemer Group Inc. now owns 5,874 shares of the company's stock worth $518,000 after purchasing an additional 2,218 shares during the period. Wealth Enhancement Advisory Services LLC increased its stake in shares of Shake Shack by 53.2% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 6,421 shares of the company's stock worth $566,000 after buying an additional 2,229 shares during the period. Finally, GAMMA Investing LLC increased its stake in shares of Shake Shack by 13,353.1% during the first quarter. GAMMA Investing LLC now owns 99,015 shares of the company's stock worth $8,730,000 after buying an additional 98,279 shares during the period. 86.07% of the stock is owned by hedge funds and other institutional investors.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

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