Shake Shack (NYSE:SHAK) Price Target Raised to $85.00 at DA Davidson

Shake Shack (NYSE:SHAK) had its price objective hoisted by equities researchers at DA Davidson from $70.00 to $85.00 in a research note issued on Thursday,Benzinga reports. The firm currently has a “buy” rating on the stock. DA Davidson’s target price would suggest a potential upside of 21.14% from the company’s previous close.

Several other analysts also recently issued reports on SHAK. Deutsche Bank Aktiengesellschaft cut their target price on shares of Shake Shack from $105.00 to $93.00 and set a “buy” rating on the stock in a research note on Thursday, July 9th. JPMorgan Chase & Co. decreased their target price on Shake Shack from $100.00 to $85.00 and set a “neutral” rating for the company in a research report on Friday, May 8th. BTIG Research reiterated a “neutral” rating on shares of Shake Shack in a report on Wednesday, May 20th. Guggenheim dropped their price target on Shake Shack from $120.00 to $100.00 and set a “buy” rating on the stock in a research report on Monday, May 11th. Finally, Barclays reduced their price objective on Shake Shack from $118.00 to $96.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $89.74.

Shake Shack Trading Down 5.6%

Shares of SHAK traded down $4.16 during midday trading on Thursday, hitting $70.17. The stock had a trading volume of 2,600,037 shares, compared to its average volume of 1,909,628. The business has a 50-day simple moving average of $58.34 and a two-hundred day simple moving average of $78.23. The firm has a market cap of $3.00 billion, a P/E ratio of 71.60, a price-to-earnings-growth ratio of 5.26 and a beta of 1.63. The company has a current ratio of 1.69, a quick ratio of 1.66 and a debt-to-equity ratio of 0.45. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $114.39.

Shake Shack (NYSE:SHAK) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.31 by $0.12. The business had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a net margin of 2.76% and a return on equity of 9.62%. The firm’s revenue was up 17.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.44 earnings per share. As a group, equities analysts forecast that Shake Shack will post 1.1 EPS for the current year.

Insider Transactions at Shake Shack

In other Shake Shack news, CEO Robert Lynch bought 5,000 shares of Shake Shack stock in a transaction on Friday, May 15th. The stock was purchased at an average cost of $60.39 per share, for a total transaction of $301,950.00. Following the completion of the purchase, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at $4,701,059.55. The trade was a 6.86% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Jeffrey Flug bought 1,000 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was acquired at an average cost of $61.30 per share, with a total value of $61,300.00. Following the completion of the transaction, the director directly owned 5,470 shares of the company’s stock, valued at approximately $335,311. This represents a 22.37% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have acquired a total of 50,616 shares of company stock valued at $3,109,782 in the last ninety days. 8.32% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Shake Shack

Several institutional investors and hedge funds have recently modified their holdings of SHAK. Wellington Management Group LLP lifted its stake in shares of Shake Shack by 21.0% in the 3rd quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock valued at $242,535,000 after purchasing an additional 450,406 shares during the last quarter. 12 West Capital Management LP increased its position in Shake Shack by 12.0% during 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 during the last quarter. State Street Corp raised its holdings 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 in the last quarter. Swedbank AB bought a new position in Shake Shack during the fourth quarter valued at about $84,092,000. Finally, Van Berkom & Associates Inc. raised its holdings in Shake Shack by 27.6% during the fourth quarter. Van Berkom & Associates Inc. now owns 923,347 shares of the company’s stock valued at $74,948,000 after buying an additional 199,687 shares in the last quarter. Institutional investors and hedge funds own 86.07% of the company’s stock.

Key Stories Impacting Shake Shack

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

• Positive Sentiment: Activist investor Starboard Value disclosed a stake worth several hundred million dollars. The investment could increase pressure for operational improvements, margin expansion, or other shareholder-friendly actions. Starboard Value discloses a sizable Shake Shack stake
• Positive Sentiment: BNP Paribas Exane raised its price target from $77 to $81 and upgraded Shake Shack to “outperform,” indicating confidence in the company’s longer-term growth prospects. BNP Paribas Exane raises Shake Shack price target
• Positive Sentiment: Second-quarter adjusted earnings came in at $0.43 per share, above the $0.31 consensus estimate, while revenue increased 17.2% year over year to $417.62 million. Shake Shack Q2 earnings beat estimates

Shake Shack Company Profile

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.