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

Key Points

• Shake Shack has a “Moderate Buy” consensus rating from 27 brokerages, with 15 analysts recommending a buy and 12 assigning a hold rating. The average 12-month price target is $89.74.
• Several analysts recently lowered their price targets, including Wells Fargo to $65, Gordon Haskett to $70, Barclays to $96, and Guggenheim to $100, reflecting a more cautious outlook despite mostly positive ratings.
• In its latest quarter, Shake Shack reported adjusted EPS of $0.43, beating the $0.31 estimate, while revenue rose 17.2% year over year to $417.62 million. Institutional investors own approximately 86.1% of the company’s shares.

Shares of Shake Shack, Inc. (NYSE:SHAK - Get Free Report) have been assigned a consensus recommendation of "Moderate Buy" from the twenty-seven brokerages that are covering the stock, Marketbeat Ratings reports. Twelve research analysts have rated the stock with a hold rating and fifteen have issued a buy rating on the company. The average 1 year price target among analysts that have covered the stock in the last year is $89.7391.

A number of research analysts recently issued reports on SHAK shares. Wall Street Zen upgraded Shake Shack from a "strong sell" rating to a "sell" rating in a report on Saturday, August 8th. Gordon Haskett cut their price target on Shake Shack from $90.00 to $70.00 and set a "buy" rating on the stock in a report on Wednesday, June 3rd. Wells Fargo & Company reduced their price target on Shake Shack from $80.00 to $65.00 and set an "equal weight" rating on the stock in a research report on Wednesday, June 3rd. Barclays decreased their price objective on Shake Shack from $118.00 to $96.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Finally, Guggenheim lowered their price objective on Shake Shack from $120.00 to $100.00 and set a "buy" rating for the company in a research report on Monday, May 11th.

Shake Shack Price Performance

Shake Shack stock opened at $74.79 on Monday. The company has a quick ratio of 1.64, a current ratio of 1.67 and a debt-to-equity ratio of 0.43. Shake Shack has a 52-week low of $51.60 and a 52-week high of $107.49. The firm has a market cap of $3.20 billion, a PE ratio of 79.57, a price-to-earnings-growth ratio of 8.20 and a beta of 1.63. The company's 50 day moving average is $60.30 and its two-hundred day moving average is $77.10.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business had revenue of $417.62 million during the quarter, compared to the consensus estimate of $417.18 million. During the same quarter in the previous year, the firm posted $0.44 earnings per share. The company's quarterly revenue was up 17.2% compared to the same quarter last year. On average, research analysts expect that Shake Shack will post 1.13 EPS for the current fiscal year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Hilton Head Capital Partners LLC acquired a new position in Shake Shack during the 4th quarter worth approximately $25,000. Geneos Wealth Management Inc. acquired a new stake in shares of Shake Shack in the 1st quarter valued at $26,000. Assetmark Inc. lifted its position in shares of Shake Shack by 457.6% during the 4th quarter. Assetmark Inc. now owns 368 shares of the company's stock worth $30,000 after purchasing an additional 302 shares during the last quarter. UMB Bank n.a. lifted its position in shares of Shake Shack by 42.2% during the 4th quarter. UMB Bank n.a. now owns 391 shares of the company's stock worth $32,000 after purchasing an additional 116 shares during the last quarter. Finally, Advisory Services Network LLC purchased a new stake in shares of Shake Shack during the 3rd quarter worth $38,000. Hedge funds and other institutional investors 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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