Shake Shack, Inc. (NYSE:SHAK) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Shares have an average analyst rating of Moderate Buy from 27 firms (14 hold, 12 buy, 1 strong buy) with an average 12‑month price target of about $118.70.
• In the most recent quarter Shake Shack reported $0.37 EPS (vs. $0.35 expected) and $400.5M in revenue (slightly below the $402.1M estimate) with revenue up 21.8% year‑over‑year; the stock trades at a P/E of roughly 92 and a market cap near $4.29B.
• Notable analyst activity includes Morgan Stanley upgrading SHAK to “overweight” with a $125 target and new/outperform coverage from firms like Wolfe Research and BNP Paribas, while institutional investors own about 86% of the shares and several large holders have recently increased stakes.

Shares of Shake Shack, Inc. (NYSE:SHAK - Get Free Report) have received an average rating of "Moderate Buy" from the twenty-seven research firms that are currently covering the stock, MarketBeat.com reports. Fourteen analysts have rated the stock with a hold recommendation, twelve have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $118.6957.

Several equities research analysts recently commented on SHAK shares. Wolfe Research started coverage on shares of Shake Shack in a research report on Monday, March 9th. They issued an "outperform" rating and a $118.00 price target for the company. Morgan Stanley upgraded shares of Shake Shack from an "equal weight" rating to an "overweight" rating and upped their price objective for the company from $115.00 to $125.00 in a research note on Tuesday, January 20th. Bank of America raised shares of Shake Shack from an "underperform" rating to a "neutral" rating and boosted their target price for the stock from $88.00 to $101.00 in a research report on Tuesday, March 31st. Weiss Ratings reissued a "hold (c)" rating on shares of Shake Shack in a research report on Wednesday, January 21st. Finally, BNP Paribas Exane began coverage on shares of Shake Shack in a research report on Monday, March 30th. They issued an "outperform" rating and a $124.00 target price for the company.

Shake Shack Stock Up 1.9%

NYSE SHAK opened at $100.45 on Tuesday. 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's 50 day simple moving average is $92.24 and its 200 day simple moving average is $90.33. Shake Shack has a 12 month low of $76.51 and a 12 month high of $144.65. The company has a market capitalization of $4.29 billion, a P/E ratio of 92.16, a PEG ratio of 3.96 and a beta of 1.75.

Shake Shack (NYSE:SHAK - Get Free Report) last released its earnings results on Thursday, February 26th. The company reported $0.37 EPS for the quarter, topping analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $402.06 million. During the same period in the previous year, the firm earned $0.26 EPS. The business's revenue for the quarter was up 21.8% on a year-over-year basis. Equities research analysts expect that Shake Shack will post 1.26 earnings per share for the current fiscal year.

Institutional Trading of Shake Shack

Several large investors have recently added to or reduced their stakes in the business. Wellington Management Group LLP grew its position in 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 in the last quarter. 12 West Capital Management LP boosted its holdings in shares of Shake Shack by 12.0% during the 4th quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company's stock worth $159,385,000 after buying an additional 210,000 shares during the period. State Street Corp boosted its holdings in shares of Shake Shack by 1.1% during the 2nd quarter. State Street Corp now owns 1,470,084 shares of the company's stock worth $206,694,000 after buying an additional 15,607 shares during the period. Swedbank AB bought a new stake in shares of Shake Shack during the 4th quarter worth $84,092,000. Finally, Van Berkom & Associates Inc. boosted 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 worth $74,948,000 after buying an additional 199,687 shares during the period. 86.07% of the stock is owned by institutional investors.

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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