Shake Shack (NYSE:SHAK) Earns Underperform Rating from Bank of America

Key Points

• Shake Shack's stock has received an "underperform" rating from Bank of America, with a revised price target of $86.00, reflecting a potential downside of 11.23% from its current price.
• Recent analyst ratings show a consensus of "Hold" for Shake Shack, with a range of price targets from various firms, including Jefferies lowering theirs from $100.00 to $120.00.
• Shake Shack's recent quarterly earnings reported a net margin of 1.50% and revenue of $356.47 million, which was above analyst expectations but demonstrates challenges in profitability.

Shake Shack (NYSE:SHAK - Get Free Report)'s stock had its "underperform" rating restated by equities researchers at Bank of America in a research report issued to clients and investors on Monday,Benzinga reports. They presently have a $86.00 price target on the stock, down from their previous price target of $148.00. Bank of America's target price would suggest a potential downside of 11.23% from the company's current price.

SHAK has been the topic of several other reports. Jefferies Financial Group lowered shares of Shake Shack from a "hold" rating to an "underperform" rating and boosted their price objective for the stock from $100.00 to $120.00 in a research note on Thursday, July 17th. UBS Group reiterated a "neutral" rating and set a $140.00 price objective (up from $100.00) on shares of Shake Shack in a research report on Friday, July 25th. Loop Capital restated a "hold" rating and issued a $127.00 price target on shares of Shake Shack in a research report on Tuesday, July 8th. Wells Fargo & Company upped their price objective on shares of Shake Shack from $115.00 to $125.00 and gave the company an "equal weight" rating in a research note on Thursday, July 17th. Finally, JPMorgan Chase & Co. increased their target price on shares of Shake Shack from $100.00 to $110.00 and gave the stock an "underweight" rating in a research note on Wednesday, June 25th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, twelve have issued a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, Shake Shack presently has a consensus rating of "Hold" and an average price target of $129.16.

Shake Shack Stock Performance

NYSE:SHAK opened at $96.89 on Monday. The firm has a market capitalization of $4.14 billion, a PE ratio of 210.62, a price-to-earnings-growth ratio of 2.20 and a beta of 1.65. The firm has a 50-day moving average price of $105.16 and a 200 day moving average price of $110.31. The company has a quick ratio of 1.89, a current ratio of 1.92 and a debt-to-equity ratio of 0.48. Shake Shack has a 12-month low of $72.93 and a 12-month high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.07. Shake Shack had a net margin of 1.50% and a return on equity of 9.78%. The company had revenue of $356.47 million during the quarter, compared to analyst estimates of $352.56 million. During the same quarter last year, the business posted $0.27 earnings per share. The company's revenue was up 12.6% on a year-over-year basis. Shake Shack has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Research analysts anticipate that Shake Shack will post 1.26 earnings per share for the current fiscal year.

Insider Activity at Shake Shack

In other Shake Shack news, CFO Katherine Irene Fogertey sold 670 shares of Shake Shack stock in a transaction that occurred on Tuesday, July 8th. The shares were sold at an average price of $140.03, for a total transaction of $93,820.10. Following the transaction, the chief financial officer directly owned 32,495 shares of the company's stock, valued at approximately $4,550,274.85. This trade represents a 2.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 8.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Ameritas Advisory Services LLC purchased a new position in Shake Shack during the 2nd quarter valued at $31,000. Parallel Advisors LLC increased its position in Shake Shack by 679.4% during the 2nd quarter. Parallel Advisors LLC now owns 265 shares of the company's stock valued at $37,000 after purchasing an additional 231 shares during the period. Farther Finance Advisors LLC increased its position in Shake Shack by 939.3% during the 1st quarter. Farther Finance Advisors LLC now owns 291 shares of the company's stock valued at $26,000 after purchasing an additional 263 shares during the period. Geneos Wealth Management Inc. purchased a new position in Shake Shack during the 1st quarter valued at $26,000. Finally, Garde Capital Inc. purchased a new position in Shake Shack during the 1st quarter valued at $35,000. 86.07% of the stock is owned by hedge funds and other institutional investors.

Shake Shack Company Profile

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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