Shake Shack Inc (SHAK) Given Average Recommendation of “Hold” by Analysts

Shares of Shake Shack Inc (NYSE:SHAK) have earned a consensus rating of “Hold” from the twelve ratings firms that are covering the firm, MarketBeat Ratings reports. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating and four have assigned a buy rating to the company. The average twelve-month price objective among brokers that have covered the stock in the last year is $54.34.

SHAK has been the topic of a number of research reports. Zacks Investment Research upgraded shares of Shake Shack from a “sell” rating to a “hold” rating in a report on Friday. Jefferies Financial Group upgraded shares of Shake Shack from an “underperform” rating to a “hold” rating and set a $45.08 target price on the stock in a report on Wednesday, December 19th. They noted that the move was a valuation call. Stifel Nicolaus dropped their target price on shares of Shake Shack from $65.00 to $55.00 and set a “hold” rating on the stock in a report on Wednesday, December 12th. Finally, Wedbush dropped their target price on shares of Shake Shack from $56.00 to $54.00 and set a “neutral” rating on the stock in a report on Tuesday, February 26th.

NYSE:SHAK traded down $1.12 during trading hours on Wednesday, hitting $58.03. The company had a trading volume of 19,676 shares, compared to its average volume of 573,038. The stock has a market cap of $2.19 billion, a P/E ratio of 82.10, a price-to-earnings-growth ratio of 4.24 and a beta of 1.45. Shake Shack has a 52 week low of $40.48 and a 52 week high of $70.12.

Shake Shack (NYSE:SHAK) last released its quarterly earnings results on Monday, February 25th. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02. The business had revenue of $124.30 million for the quarter, compared to analysts’ expectations of $119.08 million. Shake Shack had a net margin of 3.30% and a return on equity of 9.57%. The firm’s revenue for the quarter was up 29.3% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.10 earnings per share. Analysts predict that Shake Shack will post 0.62 earnings per share for the current fiscal year.

In related news, CEO Randall J. Garutti sold 50,000 shares of the company’s stock in a transaction dated Monday, March 25th. The shares were sold at an average price of $53.76, for a total value of $2,688,000.00. Following the transaction, the chief executive officer now owns 73,555 shares in the company, valued at approximately $3,954,316.80. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Randall J. Garutti sold 10,000 shares of the company’s stock in a transaction dated Friday, January 25th. The stock was sold at an average price of $48.04, for a total transaction of $480,400.00. Following the completion of the transaction, the chief executive officer now owns 28,041 shares in the company, valued at approximately $1,347,089.64. The disclosure for this sale can be found here. In the last quarter, insiders sold 480,606 shares of company stock worth $25,503,536. 30.18% of the stock is currently owned by company insiders.

Institutional investors have recently made changes to their positions in the stock. Squarepoint Ops LLC bought a new position in Shake Shack in the 4th quarter worth about $2,613,000. Rhumbline Advisers grew its stake in shares of Shake Shack by 13.2% during the 3rd quarter. Rhumbline Advisers now owns 57,674 shares of the company’s stock valued at $3,634,000 after acquiring an additional 6,726 shares during the period. BlackRock Inc. grew its stake in shares of Shake Shack by 30.4% during the 3rd quarter. BlackRock Inc. now owns 3,800,912 shares of the company’s stock valued at $239,495,000 after acquiring an additional 886,216 shares during the period. Man Group plc grew its stake in shares of Shake Shack by 347.0% during the 3rd quarter. Man Group plc now owns 52,294 shares of the company’s stock valued at $3,296,000 after acquiring an additional 40,594 shares during the period. Finally, MetLife Investment Advisors LLC bought a new position in shares of Shake Shack during the 3rd quarter valued at approximately $1,084,000. Institutional investors own 83.30% of the company’s stock.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of October 9, 2018, it operated 180 locations in 26 U.S.

Further Reading: What is Cost of Goods Sold (COGS)?

Analyst Recommendations for Shake Shack (NYSE:SHAK)

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