Shake Shack (NYSE:SHAK) Given New $85.00 Price Target at DA Davidson

Key Points

• DA Davidson raised Shake Shack’s price target from $70 to $85 and maintained a “buy” rating, implying 21.14% upside from the prior close.
• Analyst sentiment remains mixed: 15 analysts rate the stock a Buy, 10 a Hold and 2 a Sell, producing an overall “Hold” rating and average price target of $89.74.
• Shake Shack reported quarterly EPS of $0.43 versus the $0.31 consensus estimate, while revenue rose 17.2% year over year to $417.62 million.

Shake Shack (NYSE:SHAK - Get Free Report) had its price objective boosted by equities researchers at DA Davidson from $70.00 to $85.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "buy" rating on the stock. DA Davidson's price objective would suggest a potential upside of 21.14% from the stock's previous close.

Several other analysts have also recently commented on SHAK. BNP Paribas Exane raised their target price on Shake Shack from $77.00 to $81.00 and gave the company an "outperform" rating in a research report on Thursday. Barclays reduced their price target on Shake Shack from $118.00 to $96.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Citigroup reissued a "buy" rating on shares of Shake Shack in a research note on Wednesday, June 3rd. Morgan Stanley set a $74.00 price target on Shake Shack in a report on Thursday. Finally, Deutsche Bank Aktiengesellschaft cut their price objective on shares of Shake Shack from $105.00 to $93.00 and set a "buy" rating on the stock in a research note on Thursday, July 9th. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $89.74.

Shake Shack Stock Performance

Shares of SHAK stock traded down $4.16 during trading hours on Thursday, reaching $70.17. The stock had a trading volume of 2,600,037 shares, compared to its average volume of 1,909,628. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. Shake Shack has a twelve month low of $51.60 and a twelve month high of $114.39. The firm has a 50-day simple moving average of $58.34 and a 200-day simple moving average of $78.23. The firm has a market capitalization of $3.00 billion, a PE ratio of 71.60, a price-to-earnings-growth ratio of 5.26 and a beta of 1.63.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.31 by $0.12. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The firm had revenue of $417.62 million during the quarter, compared to analyst estimates of $417.18 million. During the same period in the previous year, the business posted $0.44 EPS. Shake Shack's revenue was up 17.2% on a year-over-year basis. As a group, equities analysts forecast that Shake Shack will post 1.1 earnings per share for the current year.

Insider Activity at Shake Shack

In other news, Director Daniel Harris Meyer bought 32,258 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average price of $61.88 per share, with a total value of $1,996,125.04. Following the completion of the purchase, the director directly owned 378,670 shares of the company's stock, valued at $23,432,099.60. This represents a 9.31% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Sumaiya Balbale bought 4,068 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average cost of $61.42 per share, for a total transaction of $249,856.56. Following the completion of the acquisition, the director owned 13,407 shares of the company's stock, valued at $823,457.94. This trade represents a 43.56% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders acquired 50,616 shares of company stock worth $3,109,782 in the last quarter. Company insiders own 8.32% of the company's stock.

Hedge Funds Weigh In On Shake Shack

Several large investors have recently made changes to their positions in SHAK. 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 buying an additional 450,406 shares during the last quarter. 12 West Capital Management LP lifted its position 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 valued at $159,385,000 after acquiring an additional 210,000 shares during the last quarter. State Street Corp lifted its position 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 valued at $206,694,000 after acquiring an additional 15,607 shares during the last quarter. Swedbank AB bought a new stake in shares of Shake Shack during the 4th quarter worth $84,092,000. Finally, Van Berkom & Associates Inc. grew its holdings in shares of Shake Shack by 27.6% in the 4th quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company's stock worth $74,948,000 after acquiring an additional 199,687 shares during the last quarter. Institutional investors own 86.07% of the company's stock.

Key Stories Impacting Shake Shack

Here are the key news stories impacting Shake Shack this week:

• Positive Sentiment: Activist investor Starboard Value disclosed a stake worth several hundred million dollars. The investment could increase pressure for operational improvements, margin expansion, or other shareholder-friendly actions. Starboard Value discloses a sizable Shake Shack stake
• Positive Sentiment: BNP Paribas Exane raised its price target from $77 to $81 and upgraded Shake Shack to “outperform,” indicating confidence in the company’s longer-term growth prospects. BNP Paribas Exane raises Shake Shack price target
• Positive Sentiment: Second-quarter adjusted earnings came in at $0.43 per share, above the $0.31 consensus estimate, while revenue increased 17.2% year over year to $417.62 million. Shake Shack Q2 earnings beat estimates

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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