Wolfe Research Initiates Coverage on Shake Shack (NYSE:SHAK)

Wolfe Research assumed coverage on shares of Shake Shack (NYSE:SHAK) in a research report issued to clients and investors on Monday,Benzinga reports. The firm set an “outperform” rating and a $118.00 price target on the stock. Wolfe Research’s price target suggests a potential upside of 26.12% from the company’s current price.

Several other analysts have also issued reports on the stock. Deutsche Bank Aktiengesellschaft raised shares of Shake Shack from a “hold” rating to a “buy” rating and set a $105.00 price target on the stock in a research report on Tuesday, January 6th. Raymond James Financial set a $140.00 price objective on shares of Shake Shack in a research note on Wednesday, January 21st. Morgan Stanley raised shares of Shake Shack from an “equal weight” rating to an “overweight” rating and boosted their target price for the company from $115.00 to $125.00 in a report on Tuesday, January 20th. 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 report on Friday, February 27th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Shake Shack in a report on Wednesday, January 21st. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating, thirteen have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and a consensus target price of $116.64.

Shake Shack Stock Performance

NYSE:SHAK opened at $93.56 on Monday. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.76 and a quick ratio of 1.73. The business has a fifty day simple moving average of $92.30 and a two-hundred day simple moving average of $92.27. Shake Shack has a 1 year low of $72.93 and a 1 year high of $144.65. The company has a market capitalization of $3.99 billion, a P/E ratio of 85.83, a P/E/G ratio of 4.99 and a beta of 1.73.

Shake Shack (NYSE:SHAK) last issued its earnings results 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 was up 21.8% on a year-over-year basis. During the same period in the previous year, the company posted $0.26 earnings per share. On average, analysts expect that Shake Shack will post 1.26 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in SHAK. Wellington Management Group LLP increased its holdings in shares of Shake Shack by 21.0% in the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock worth $242,535,000 after purchasing an additional 450,406 shares during the period. 12 West Capital Management LP raised its position in shares of Shake Shack by 12.0% in the fourth quarter. 12 West Capital Management LP now owns 1,963,595 shares of the company’s stock worth $159,385,000 after buying an additional 210,000 shares in the last quarter. State Street Corp boosted its stake in Shake Shack by 1.1% during the second quarter. State Street Corp now owns 1,470,084 shares of the company’s stock valued at $206,694,000 after buying an additional 15,607 shares during the period. Swedbank AB bought a new stake in Shake Shack during the fourth quarter valued at $84,092,000. Finally, Van Berkom & Associates Inc. grew its position in Shake Shack by 27.6% during the fourth quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company’s stock worth $74,948,000 after buying an additional 199,687 shares in the last quarter. 86.07% of the stock is currently owned by hedge funds and other institutional investors.

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.