UBS Group Forecasts Strong Price Appreciation for Shake Shack (NYSE:SHAK) Stock

Key Points

• UBS Group raised Shake Shack's stock price target from $100.00 to $140.00, indicating a potential upside of 3.52% from its previous close.
• Shake Shack's average rating from analysts is currently "Hold" with an average target price of $128.68.
• The company reported a quarterly revenue of $320.90 million, which was below analysts' expectations of $330.24 million.
• Insiders have sold a total of 87,391 shares of Shake Shack stock recently, valued at about $11.87 million.

Shake Shack (NYSE:SHAK - Get Free Report) had its price target upped by equities researchers at UBS Group from $100.00 to $140.00 in a note issued to investors on Friday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. UBS Group's target price indicates a potential upside of 3.52% from the stock's previous close.

Several other brokerages also recently weighed in on SHAK. KeyCorp began coverage on shares of Shake Shack in a research report on Monday, June 2nd. They set a "sector weight" rating for the company. BTIG Research cut shares of Shake Shack from a "buy" rating to a "neutral" rating in a report on Monday, June 2nd. Oppenheimer restated an "outperform" rating and issued a $160.00 target price (up previously from $125.00) on shares of Shake Shack in a report on Thursday, June 26th. Raymond James Financial reiterated a "strong-buy" rating and set a $140.00 price target (down previously from $145.00) on shares of Shake Shack in a research note on Friday, May 2nd. Finally, Morgan Stanley lifted their price target on shares of Shake Shack from $109.00 to $122.00 and gave the stock an "equal weight" rating in a research note on Monday, July 14th. Two equities research analysts have rated the stock with a sell rating, fourteen have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, Shake Shack currently has an average rating of "Hold" and an average target price of $128.68.

Shake Shack Stock Performance

SHAK stock traded up $1.53 during midday trading on Friday, reaching $135.25. 210,313 shares of the company's stock traded hands, compared to its average volume of 1,399,896. The firm has a market capitalization of $5.77 billion, a PE ratio of 482.95, a price-to-earnings-growth ratio of 3.23 and a beta of 1.77. Shake Shack has a 52 week low of $72.93 and a 52 week high of $144.65. The company has a 50-day moving average price of $131.00 and a two-hundred day moving average price of $111.75. The company has a debt-to-equity ratio of 0.50, a quick ratio of 1.88 and a current ratio of 1.91.

Shake Shack (NYSE:SHAK - Get Free Report) last posted its earnings results on Thursday, May 1st. The company reported $0.14 earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.02). Shake Shack had a return on equity of 8.45% and a net margin of 0.97%. The firm had revenue of $320.90 million for the quarter, compared to analysts' expectations of $330.24 million. During the same quarter in the prior year, the company posted $0.13 earnings per share. The business's revenue for the quarter was up 10.5% on a year-over-year basis. As a group, equities analysts anticipate that Shake Shack will post 1.26 EPS for the current year.

Insider Buying and Selling

In other news, CFO Katherine Irene Fogertey sold 3,956 shares of the firm's stock in a transaction that occurred on Thursday, June 12th. The stock was 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 $4,557,767.50. This trade represents a 9.96% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Daniel Harris Meyer sold 20,000 shares of the firm's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $140.07, for a total value of $2,801,400.00. Following the sale, the director directly owned 367,984 shares in the company, valued at approximately $51,543,518.88. The trade was a 5.15% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 87,391 shares of company stock valued at $11,869,925. 9.73% of the stock is currently owned by corporate insiders.

Institutional Trading of Shake Shack

A number of institutional investors have recently bought and sold shares of SHAK. Farther Finance Advisors LLC lifted its stake in Shake Shack by 939.3% in the 1st quarter. Farther Finance Advisors LLC now owns 291 shares of the company's stock valued at $26,000 after buying an additional 263 shares in the last quarter. Geneos Wealth Management Inc. acquired a new position in Shake Shack in the first quarter worth approximately $26,000. Nemes Rush Group LLC purchased a new position in Shake Shack during the 4th quarter worth approximately $29,000. Ameritas Advisory Services LLC acquired a new stake in shares of Shake Shack in the 2nd quarter valued at $31,000. Finally, Garde Capital Inc. bought a new position in Shake Shack in the 1st quarter worth $35,000. 86.07% of the stock is owned by hedge funds and other 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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