Shake Shack (NYSE:SHAK) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Shake Shack from “strong sell” to “sell,” while the broader analyst consensus remains “Moderate Buy,” with 15 Buy ratings and 12 Holds and an average price target of $89.74.
• Shake Shack reported quarterly EPS of $0.43, beating the $0.31 estimate, while revenue rose 17.2% year over year to $417.6 million and slightly exceeded forecasts.
• The stock opened at $71.09, well below its 52-week high of $111.76; insiders purchased more than 50,000 shares worth approximately $3.1 million over the past 90 days.

Shake Shack (NYSE:SHAK - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "strong sell" rating to a "sell" rating in a research note issued on Saturday.

Several other research firms also recently weighed in on SHAK. Weiss Ratings raised Shake Shack from a "sell (d)" rating to a "hold (c-)" rating in a research note on Thursday. TD Cowen reaffirmed a "hold" rating on shares of Shake Shack in a report on Wednesday. Barclays lowered their target price on Shake Shack from $118.00 to $96.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Citigroup restated a "buy" rating on shares of Shake Shack in a research report on Wednesday, June 3rd. Finally, Gordon Haskett cut their price target on Shake Shack from $90.00 to $70.00 and set a "buy" rating for the company in a research note on Wednesday, June 3rd. Fifteen analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $89.74.

Shake Shack Trading Up 1.2%

Shares of SHAK opened at $71.09 on Friday. The company has a current ratio of 1.67, a quick ratio of 1.66 and a debt-to-equity ratio of 0.43. The firm's 50-day moving average is $58.64 and its two-hundred day moving average is $77.98. Shake Shack has a twelve month low of $51.60 and a twelve month high of $111.76. The firm has a market capitalization of $3.04 billion, a P/E ratio of 75.63, a PEG ratio of 5.45 and a beta of 1.63.

Shake Shack (NYSE:SHAK - Get Free Report) last issued 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 2.56% and a return on equity of 9.29%. The company had revenue of $417.62 million during the quarter, compared to analysts' expectations of $417.18 million. During the same period last year, the company posted $0.44 earnings per share. The firm's quarterly revenue was up 17.2% compared to the same quarter last year. On average, research analysts predict that Shake Shack will post 1.13 earnings per share for the current fiscal year.

Insider Buying and Selling at Shake Shack

In related news, Director Jeffrey Flug acquired 1,000 shares of the business's stock in a transaction that occurred on Friday, May 15th. The stock was purchased at an average cost of $61.30 per share, for a total transaction of $61,300.00. Following the transaction, the director directly owned 5,470 shares of the company's stock, valued at approximately $335,311. This trade represents a 22.37% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, Director Josh Silverman bought 8,290 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The stock was bought at an average cost of $60.38 per share, for a total transaction of $500,550.20. Following the purchase, the director owned 8,290 shares in the company, valued at $500,550.20. This represents a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last 90 days, insiders bought 50,616 shares of company stock worth $3,109,782. 8.32% of the stock is currently owned by insiders.

Institutional Trading of Shake Shack

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Wellington Management Group LLP increased its position in Shake Shack by 21.0% during the 3rd quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company's stock worth $242,535,000 after purchasing an additional 450,406 shares in the last quarter. 12 West Capital Management LP boosted its stake 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 worth $159,385,000 after purchasing an additional 210,000 shares during the last quarter. State Street Corp grew its holdings in shares of Shake Shack by 1.1% during the second quarter. State Street Corp now owns 1,470,084 shares of the company's stock worth $206,694,000 after buying an additional 15,607 shares in the last quarter. Swedbank AB acquired a new position in shares of Shake Shack in the fourth quarter valued at approximately $84,092,000. Finally, Van Berkom & Associates Inc. lifted its stake in shares of Shake Shack by 27.6% during the fourth quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company's stock valued at $74,948,000 after buying an additional 199,687 shares during the period. 86.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Shake Shack News

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

• Positive Sentiment: Starboard stake provides a major catalyst: Activist investor Starboard Value has taken a new position in Shake Shack. The news fueled investor interest because Starboard may push for better margins, improved execution, or changes to the company’s growth strategy. Activist investor Starboard takes new position in Shake Shack
• Positive Sentiment: Quarterly earnings exceeded expectations: Shake Shack reported adjusted earnings of $0.43 per share, above the $0.31 consensus estimate. Revenue rose 17.2% year over year to approximately $417.6 million, narrowly exceeding forecasts. The company also opened 27 new restaurants during the quarter. Shake Shack beats Q2 expectations, opens 27 new restaurants
• Positive Sentiment: Analyst sentiment improved: DA Davidson raised its price target from $70 to $85 and upgraded the stock to Buy, while BNP Paribas Exane increased its target from $77 to $81 and assigned an Outperform rating. These revisions suggest analysts see additional upside following the earnings report and activist investment. Analyst price-target updates
• Neutral Sentiment: Growth plans remain intact: Management is targeting 60 to 65 company-operated restaurant openings in 2026 but is shifting to annual rather than quarterly guidance, reducing the frequency of near-term updates for investors. Shake Shack targets 60 to 65 company-operated Shacks in 2026
• Negative Sentiment: Margins remain under pressure: Beef inflation and other higher costs weighed on profitability despite the revenue and earnings beats. With the stock trading at a high earnings multiple, investors may remain sensitive to any deterioration in margins or slower growth.
• Neutral Sentiment: Zacks upgraded Shake Shack from Strong Sell to Hold, signaling reduced bearishness but not a bullish recommendation. Zacks.com

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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