TD Cowen Issues Positive Forecast for Shake Shack (NYSE:SHAK) Stock Price

Key Points

• TD Cowen increased its price target for Shake Shack (NYSE:SHAK) stock from $105.00 to $110.00, indicating a potential downside from the previous close.
• Analysts currently maintain a consensus rating of "Hold" for Shake Shack stock, with an average price target of $130.52.
• Shake Shack's recent quarterly earnings report showed an EPS of $0.44, surpassing the consensus estimate of $0.36 by $0.08.

Shake Shack (NYSE:SHAK - Get Free Report) had its price objective lifted by investment analysts at TD Cowen from $105.00 to $110.00 in a report issued on Thursday,Benzinga reports. The brokerage presently has a "hold" rating on the stock. TD Cowen's price objective points to a potential downside of 9.65% from the company's previous close.

Other equities analysts also recently issued reports about the company. BTIG Research downgraded Shake Shack from a "buy" rating to a "neutral" rating in a research report on Monday, June 2nd. UBS Group reissued a "neutral" rating and issued a $140.00 target price (up from $100.00) on shares of Shake Shack in a research report on Friday, July 25th. Barclays upped their price target on shares of Shake Shack from $166.00 to $168.00 and gave the stock an "overweight" rating in a research report on Thursday, July 17th. Wells Fargo & Company boosted their price objective on shares of Shake Shack from $115.00 to $125.00 and gave the company an "equal weight" rating in a research note on Thursday, July 17th. Finally, TD Securities restated a "hold" rating and set a $105.00 price objective on shares of Shake Shack in a report on Thursday, June 26th. Two equities research analysts have rated the stock with a sell rating, fourteen have issued a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $130.52.

Shake Shack Price Performance

Shake Shack stock traded down $19.16 during trading hours on Thursday, hitting $121.75. The stock had a trading volume of 8,724,013 shares, compared to its average volume of 1,454,542. The stock has a market capitalization of $5.19 billion, a price-to-earnings ratio of 436.43, a PEG ratio of 3.22 and a beta of 1.77. The company has a debt-to-equity ratio of 0.50, a current ratio of 1.91 and a quick ratio of 1.88. Shake Shack has a 1-year low of $72.93 and a 1-year high of $144.65. The stock's fifty day moving average is $132.18 and its two-hundred day moving average is $111.74.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its quarterly earnings data on Thursday, July 31st. The company reported $0.44 EPS for the quarter, beating analysts' consensus estimates of $0.36 by $0.08. Shake Shack had a return on equity of 8.45% and a net margin of 0.97%. During the same quarter last year, the company earned $0.27 EPS. The company's quarterly revenue was up 12.6% compared to the same quarter last year. As a group, analysts predict that Shake Shack will post 1.26 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Shake Shack news, CFO Katherine Irene Fogertey sold 3,956 shares of the company's stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $127.49, for a total value of $504,350.44. Following the completion of the sale, the chief financial officer directly owned 35,750 shares of the company's stock, valued at approximately $4,557,767.50. This represents a 9.96% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Daniel Harris Meyer sold 20,000 shares of Shake Shack stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $140.07, for a total transaction of $2,801,400.00. Following the completion of the transaction, the director directly owned 367,984 shares in the company, valued at $51,543,518.88. This represents a 5.15% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 87,391 shares of company stock valued at $11,869,925 over the last three months. Corporate insiders own 9.73% of the company's stock.

Institutional Trading of Shake Shack

Large investors have recently added to or reduced their stakes in the business. AlphaQuest LLC boosted its holdings in shares of Shake Shack by 394.7% in the second quarter. AlphaQuest LLC now owns 1,296 shares of the company's stock worth $182,000 after buying an additional 1,034 shares during the period. Strategic Blueprint LLC purchased a new position in Shake Shack during the 2nd quarter worth approximately $302,000. FNY Investment Advisers LLC acquired a new stake in Shake Shack during the 2nd quarter valued at $1,201,000. D.A. Davidson & CO. lifted its holdings in shares of Shake Shack by 10.5% in the second quarter. D.A. Davidson & CO. now owns 10,758 shares of the company's stock valued at $1,513,000 after purchasing an additional 1,021 shares in the last quarter. Finally, Stratos Wealth Partners LTD. boosted its position in shares of Shake Shack by 27.2% in the second quarter. Stratos Wealth Partners LTD. now owns 5,929 shares of the company's stock worth $834,000 after buying an additional 1,269 shares during the period. 86.07% of the stock is currently owned by institutional investors.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.

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