Shake Shack's (SHAK) Buy Rating Reaffirmed at DA Davidson

Key Points

• DA Davidson reaffirmed its "buy" rating on Shake Shack with a $125 price target, implying about a 23.9% upside from the stock's current level.
• Analyst consensus sits at a Moderate Buy with an average price target of $119.67; ratings breakdown shows 1 Strong Buy, 13 Buy and 14 Hold.
• In the latest quarter Shake Shack reported $0.37 EPS (beating estimates by $0.02) and revenue of $400.5M (up 21.8% year-over-year but slightly below estimates).

Shake Shack (NYSE:SHAK - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at DA Davidson in a research note issued on Monday,Benzinga reports. They currently have a $125.00 target price on the stock. DA Davidson's price target points to a potential upside of 23.86% from the stock's current price.

A number of other equities analysts have also weighed in on SHAK. Wells Fargo & Company increased their target price on Shake Shack from $90.00 to $100.00 and gave the stock an "equal weight" rating in a research note on Friday, February 27th. Weiss Ratings reiterated a "hold (c)" rating on shares of Shake Shack in a research note on Monday, April 20th. Wolfe Research began coverage on Shake Shack in a research note on Monday, March 9th. They set an "outperform" rating and a $118.00 target price on the stock. TD Cowen increased their target price on Shake Shack from $100.00 to $105.00 and gave the stock a "hold" rating in a research note on Thursday, February 26th. Finally, BNP Paribas Exane began coverage on Shake Shack in a research note on Monday, March 30th. They set an "outperform" rating and a $124.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and fourteen have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Shake Shack presently has an average rating of "Moderate Buy" and an average price target of $119.67.

Shake Shack Stock Performance

NYSE:SHAK traded down $2.10 on Monday, hitting $100.92. The company's stock had a trading volume of 240,077 shares, compared to its average volume of 1,389,851. The company has a current ratio of 1.76, a quick ratio of 1.73 and a debt-to-equity ratio of 0.45. The stock has a fifty day moving average of $93.59 and a two-hundred day moving average of $90.82. The firm has a market capitalization of $4.31 billion, a P/E ratio of 92.42, a price-to-earnings-growth ratio of 4.04 and a beta of 1.75. Shake Shack has a one year low of $76.51 and a one year high of $144.65.

Shake Shack (NYSE:SHAK - Get Free Report) last released its quarterly earnings data on Thursday, February 26th. The company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate 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 for the quarter was up 21.8% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.26 earnings per share. Research analysts predict that Shake Shack will post 1.39 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Shake Shack

Several institutional investors and hedge funds have recently bought and sold shares of SHAK. Strs Ohio boosted its holdings in shares of Shake Shack by 150.0% in the 1st quarter. Strs Ohio now owns 1,000 shares of the company's stock valued at $88,000 after purchasing an additional 600 shares in the last quarter. Pictet Asset Management Holding SA boosted its holdings in shares of Shake Shack by 15.0% in the 1st quarter. Pictet Asset Management Holding SA now owns 6,689 shares of the company's stock valued at $592,000 after purchasing an additional 872 shares in the last quarter. Wasatch Advisors LP boosted its holdings in shares of Shake Shack by 16.5% in the 1st quarter. Wasatch Advisors LP now owns 407,283 shares of the company's stock valued at $36,032,000 after purchasing an additional 57,612 shares in the last quarter. Wesbanco Bank Inc. acquired a new stake in shares of Shake Shack in the 1st quarter valued at $1,416,000. Finally, Generali Investments Towarzystwo Funduszy Inwestycyjnych acquired a new stake in shares of Shake Shack during the 1st quarter valued at $88,000. Institutional investors own 86.07% of the company's stock.

About Shake Shack

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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