TD Cowen Cuts Shake Shack (NYSE:SHAK) Price Target to $70.00

Key Points

• TD Cowen lowered its price target on Shake Shack from $76 to $70 while keeping a hold rating. The new target still implies about 13.8% upside from the prior close.
• Shake Shack shares were trading around $61.50, near their 12-month low of $59.49 and well below both the 50-day and 200-day moving averages. The stock fell after a recent earnings miss.
• The company’s latest quarterly results showed EPS of $0.00, missing expectations of $0.11, and revenue of $366.7 million, also below estimates. Despite that, revenue still rose 14.3% year over year.

Shake Shack (NYSE:SHAK - Get Free Report) had its price target lowered by equities research analysts at TD Cowen from $76.00 to $70.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price objective points to a potential upside of 13.82% from the company's previous close.

Several other analysts have also recently issued reports on the stock. Mizuho set a $100.00 price target on shares of Shake Shack in a research report on Friday, May 8th. Stifel Nicolaus raised shares of Shake Shack from a "hold" rating to a "buy" rating and reduced their price target for the stock from $105.00 to $85.00 in a research report on Friday, May 8th. 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 price target on the stock. Wells Fargo & Company reduced their price target on shares of Shake Shack from $100.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Friday, May 8th. Finally, The Goldman Sachs Group reissued a "buy" rating on shares of Shake Shack in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, twelve have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $106.83.

Shake Shack Trading Down 1.9%

NYSE SHAK opened at $61.50 on Wednesday. The firm's 50-day moving average is $86.14 and its two-hundred day moving average is $88.31. Shake Shack has a 12 month low of $59.49 and a 12 month high of $144.65. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.69 and a quick ratio of 1.66. The stock has a market capitalization of $2.63 billion, a P/E ratio of 62.76, a PEG ratio of 2.59 and a beta of 1.78.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $0.00 EPS for the quarter, missing analysts' consensus estimates of $0.11 by ($0.11). Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The company had revenue of $366.74 million during the quarter, compared to analyst estimates of $372.43 million. During the same period in the previous year, the company earned $0.14 EPS. The company's quarterly revenue was up 14.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Shake Shack will post 1.24 earnings per share for the current year.

Insider Activity at Shake Shack

In other news, Director Josh Silverman purchased 8,290 shares of the stock in a transaction on Friday, May 15th. The stock was bought at an average price of $60.38 per share, for a total transaction of $500,550.20. Following the acquisition, the director directly owned 8,290 shares of the company's stock, valued at approximately $500,550.20. The trade was a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Sumaiya Balbale purchased 4,068 shares of the stock in a transaction on Friday, May 15th. The shares were purchased at an average price of $61.42 per share, with a total value of $249,856.56. Following the acquisition, the director directly owned 13,407 shares in the company, valued at $823,457.94. This represents a 43.56% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have acquired a total of 50,616 shares of company stock worth $3,109,782 over the last ninety days. 8.32% of the stock is currently owned by insiders.

Institutional Trading of Shake Shack

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC acquired a new stake in Shake Shack during the fourth quarter worth approximately $25,000. Geneos Wealth Management Inc. acquired a new position in Shake Shack in the first quarter valued at $26,000. Assetmark Inc. boosted its stake in Shake Shack by 457.6% in the fourth quarter. Assetmark Inc. now owns 368 shares of the company's stock valued at $30,000 after acquiring an additional 302 shares in the last quarter. UMB Bank n.a. boosted its stake in Shake Shack by 42.2% in the fourth quarter. UMB Bank n.a. now owns 391 shares of the company's stock valued at $32,000 after acquiring an additional 116 shares in the last quarter. Finally, Murphy & Mullick Capital Management Corp boosted its stake in Shake Shack by 68.5% in the third quarter. Murphy & Mullick Capital Management Corp now owns 418 shares of the company's stock valued at $38,000 after acquiring an additional 170 shares in the last quarter. Institutional investors and hedge funds own 86.07% of the company's stock.

Shake Shack News Roundup

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

• Positive Sentiment: Founder Danny Meyer reportedly bought about $2 million of Shake Shack stock after the shares fell sharply, which may reassure investors that management sees long-term value at current levels. Founder Danny Meyer Just Bought $2 Million of Shake Shack Stock After Its 28% Drop
• Positive Sentiment: Shake Shack is being featured in National Hamburger Day promotions and free-burger offers, which could support traffic and brand visibility in the near term. National Hamburger Day 2026: Free burgers from Shake Shack, Sonic and more
• Neutral Sentiment: Zacks Research cut its profit estimates for Shake Shack across FY2026, FY2027, FY2028, and Q1 2027, but kept a Hold rating, reinforcing a cautious but not outright bearish stance.
• Negative Sentiment: Analysts and commentary point to aggressive store growth and technology spending lifting costs and pressuring margins, which is the main reason the stock has been weak lately.
• Negative Sentiment: Multiple law firms are investigating Shake Shack on behalf of investors, adding headline risk and uncertainty around possible securities claims. INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Shake-Shack, Inc. - SHAK
• Negative Sentiment: Recent commentary also suggests “something’s gone wrong” operationally at Shake Shack, reinforcing concerns that the company’s near-term earnings outlook may remain challenged. Something's Gone Wrong At Shake Shack. Here's How To Fix It.

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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