Shake Shack (NYSE:SHAK) Stock Rating Upgraded by Guggenheim

Key Points

• Guggenheim upgraded Shake Shack (NYSE:SHAK) to a strong-buy, and the analyst consensus remains a "Moderate Buy" with an average price target of $119.67 (2 Strong Buy, 12 Buy, 14 Hold).
• In the latest quarter Shake Shack posted $0.37 EPS vs. $0.35 expected and $400.53M in revenue (slightly below estimates) with revenue up 21.8% year‑over‑year; the shares trade near $103 with a market cap of $4.41B and a high valuation (PE ≈ 95).
• Insiders disclosed a small sale (258 shares) and retain about 8.5% ownership, while institutional investors and hedge funds own roughly 86.07% of the stock, including sizable positions from Wellington, Swedbank, Adage, Marshall Wace and Renaissance.

Shake Shack (NYSE:SHAK - Get Free Report) was upgraded by Guggenheim to a "strong-buy" rating in a research report issued to clients and investors on Friday,Zacks.com reports.

Other equities analysts have also issued reports about the stock. Robert W. Baird raised their target price on shares of Shake Shack from $104.00 to $108.00 and gave the stock a "neutral" rating in a research report on Friday, February 27th. Raymond James Financial set a $140.00 target price on shares of Shake Shack in a research report on Wednesday, January 21st. JPMorgan Chase & Co. raised their target price on shares of Shake Shack from $95.00 to $100.00 and gave the stock a "neutral" rating in a research report on Friday. TD Cowen raised their target price on shares of Shake Shack from $100.00 to $105.00 and gave the stock a "hold" rating in a research report on Thursday, February 26th. Finally, Wolfe Research initiated coverage on shares of Shake Shack in a research report on Monday, March 9th. They set an "outperform" rating and a $118.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and fourteen have given a Hold rating to the company. According to MarketBeat.com, Shake Shack has a consensus rating of "Moderate Buy" and an average price target of $119.67.

Shake Shack Stock Performance

Shares of NYSE:SHAK opened at $103.34 on Friday. The firm has a market cap of $4.41 billion, a PE ratio of 94.81, a price-to-earnings-growth ratio of 3.83 and a beta of 1.75. The firm's 50 day simple moving average is $93.59 and its 200-day simple moving average is $90.85. Shake Shack has a one year low of $76.51 and a one year high of $144.65. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.73 and a current ratio of 1.76.

Shake Shack (NYSE:SHAK - Get Free Report) last issued 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. The business had revenue of $400.53 million for the quarter, compared to analyst estimates of $402.06 million. Shake Shack had a net margin of 3.16% and a return on equity of 11.08%. The company's quarterly revenue was up 21.8% compared to the same quarter last year. During the same period last year, the company posted $0.26 earnings per share. As a group, equities analysts predict that Shake Shack will post 1.39 EPS for the current year.

Insider Transactions at Shake Shack

In related news, insider Stephanie Ann Sentell sold 258 shares of Shake Shack stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $102.21, for a total transaction of $26,370.18. Following the transaction, the insider directly owned 15,084 shares of the company's stock, valued at $1,541,735.64. This trade represents a 1.68% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 8.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Shake Shack

Several institutional investors have recently bought and sold shares of SHAK. Swedbank AB purchased a new position in Shake Shack during the fourth quarter valued at approximately $84,092,000. Adage Capital Partners GP L.L.C. purchased a new position in Shake Shack during the fourth quarter valued at approximately $40,829,000. Wellington Management Group LLP increased its holdings in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock valued at $242,535,000 after buying an additional 450,406 shares during the period. Marshall Wace LLP increased its holdings in Shake Shack by 285.2% during the third quarter. Marshall Wace LLP now owns 586,999 shares of the company's stock valued at $54,949,000 after buying an additional 434,625 shares during the period. Finally, Renaissance Technologies LLC purchased a new position in Shake Shack during the fourth quarter valued at approximately $20,455,000. 86.07% of the stock is owned by hedge funds and other institutional investors.

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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