Shake Shack (NYSE:SHAK) Stock Price Expected to Rise, JPMorgan Chase & Co. Analyst Says

Key Points

• JPMorgan raised its price target on Shake Shack from $95 to $100 but kept a "neutral" rating, implying about a 2.77% downside from the stock's current price.
• Overall analyst sentiment is mixed-to-positive with a MarketBeat consensus of "Moderate Buy" and a consensus target of $119.67, supported by recent upgrades from firms including Wolfe Research, Mizuho and Bank of America.
• Fundamentals and trading: SHAK traded at $102.85 (up 5.4%), reported an EPS beat ($0.37 vs. $0.35) with revenue up 21.8% year-over-year, and currently trades at a high P/E of 94.38.

Shake Shack (NYSE:SHAK - Get Free Report) had its price target upped by investment analysts at JPMorgan Chase & Co. from $95.00 to $100.00 in a report issued on Friday,Benzinga reports. The brokerage presently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price indicates a potential downside of 2.77% from the company's current price.

A number of other equities analysts have also commented on the company. Wolfe Research began coverage on Shake Shack in a research note on Monday, March 9th. They issued an "outperform" rating and a $118.00 price objective on the stock. Bank of America upgraded shares of Shake Shack from an "underperform" rating to a "neutral" rating and raised their price target for the stock from $88.00 to $101.00 in a report on Tuesday, March 31st. Mizuho upgraded shares of Shake Shack from a "neutral" rating to an "outperform" rating and boosted their price target for the stock from $100.00 to $120.00 in a research report on Friday, April 10th. Zacks Research raised shares of Shake Shack from a "strong sell" rating to a "hold" rating in a research note on Monday, March 9th. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $117.00 price objective on shares of Shake Shack in a research report on Wednesday, April 15th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and fourteen have given a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $119.67.

Shake Shack Trading Up 5.4%

NYSE:SHAK traded up $5.26 during trading hours on Friday, hitting $102.85. 406,357 shares of the company were exchanged, compared to its average volume of 1,394,895. The stock has a market capitalization of $4.39 billion, a price-to-earnings ratio of 94.38, a price-to-earnings-growth ratio of 3.89 and a beta of 1.75. Shake Shack has a one year low of $76.51 and a one year high of $144.65. The company has a fifty day simple moving average of $93.29 and a 200 day simple moving average of $90.79. The company has a current ratio of 1.76, a quick ratio of 1.73 and a debt-to-equity ratio of 0.45.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.37 EPS for the quarter, beating analysts' consensus estimates of $0.35 by $0.02. The firm had revenue of $400.53 million for the quarter, compared to analyst estimates of $402.06 million. Shake Shack had a return on equity of 11.08% and a net margin of 3.16%.The business's revenue was up 21.8% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.26 EPS. Sell-side analysts expect that Shake Shack will post 1.39 EPS for the current fiscal year.

Insider Activity at Shake Shack

In related news, insider Stephanie Ann Sentell sold 258 shares of the business's stock in a transaction dated Wednesday, April 15th. The stock was sold at an average price of $102.21, for a total value of $26,370.18. Following the completion of the sale, the insider directly owned 15,084 shares of the company's stock, valued at $1,541,735.64. The trade was a 1.68% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Shake Shack

Hedge funds have recently added to or reduced their stakes in the company. Swedbank AB acquired a new position in shares of Shake Shack during the fourth quarter worth approximately $84,092,000. Adage Capital Partners GP L.L.C. acquired a new stake in Shake Shack in the 4th quarter valued at $40,829,000. Wellington Management Group LLP grew its position in Shake Shack by 21.0% in the 3rd quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock valued at $242,535,000 after purchasing an additional 450,406 shares during the period. Marshall Wace LLP increased its stake in Shake Shack by 285.2% during the 3rd quarter. Marshall Wace LLP now owns 586,999 shares of the company's stock valued at $54,949,000 after purchasing an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC bought a new stake in Shake Shack during the 4th quarter valued at $20,455,000. Institutional investors and hedge funds 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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