Shake Shack (NYSE:SHAK) Stock Rating Upgraded by Guggenheim

Shake Shack (NYSE:SHAK) was upgraded by equities researchers at Guggenheim to a “strong-buy” rating in a research report issued to clients and investors on Friday,Zacks.com reports.

SHAK has been the topic of a number of other reports. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Shake Shack in a research report on Monday, April 20th. Morgan Stanley raised Shake Shack from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $115.00 to $125.00 in a research report on Tuesday, January 20th. Robert W. Baird upped their price target on Shake Shack from $104.00 to $108.00 and gave the company a “neutral” rating in a research report on Friday, February 27th. Raymond James Financial set a $140.00 price target on Shake Shack in a research report on Wednesday, January 21st. Finally, Barclays dropped their price target on Shake Shack from $115.00 to $110.00 and set an “overweight” rating on the stock in a research report on Wednesday, January 7th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and fourteen have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $119.67.

Shake Shack Stock Performance

Shares of SHAK opened at $103.34 on Friday. The business’s 50 day moving average is $93.59 and its two-hundred day moving average is $90.83. Shake Shack has a 52-week low of $76.51 and a 52-week high of $144.65. The firm has a market cap of $4.41 billion, a price-to-earnings ratio of 94.81, a PEG ratio of 3.83 and a beta of 1.75. The company has a quick ratio of 1.73, a current ratio of 1.76 and a debt-to-equity ratio of 0.45.

Shake Shack (NYSE:SHAK) last announced its earnings results on Thursday, February 26th. The company reported $0.37 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.35 by $0.02. Shake Shack had a return on equity of 11.08% and a net margin of 3.16%.The company had revenue of $400.53 million for the quarter, compared to analyst estimates of $402.06 million. During the same period in the prior year, the company posted $0.26 EPS. Shake Shack’s quarterly revenue was up 21.8% on a year-over-year basis. Analysts forecast that Shake Shack will post 1.39 EPS for the current fiscal year.

Insider Activity

In related news, insider Stephanie Ann Sentell sold 258 shares of the company’s stock in a transaction that occurred on Wednesday, April 15th. The stock was sold at an average price of $102.21, for a total transaction of $26,370.18. Following the sale, the insider directly owned 15,084 shares of the company’s stock, valued at approximately $1,541,735.64. This represents a 1.68% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 8.50% of the company’s stock.

Institutional Investors Weigh In On Shake Shack

Institutional investors and hedge funds have recently made changes to their positions in the company. Nordea Investment Management AB increased its position in Shake Shack by 36.6% in the third quarter. Nordea Investment Management AB now owns 106,317 shares of the company’s stock worth $9,851,000 after buying an additional 28,487 shares during the period. Divisadero Street Capital Management LP increased its position in Shake Shack by 407.8% in the third quarter. Divisadero Street Capital Management LP now owns 56,985 shares of the company’s stock worth $5,334,000 after buying an additional 45,762 shares during the period. Y Intercept Hong Kong Ltd acquired a new stake in Shake Shack in the third quarter worth $8,416,000. Public Sector Pension Investment Board increased its position in Shake Shack by 14.5% in the third quarter. Public Sector Pension Investment Board now owns 156,998 shares of the company’s stock worth $14,697,000 after buying an additional 19,889 shares during the period. Finally, 12 West Capital Management LP increased its position in Shake Shack by 13.6% in the third quarter. 12 West Capital Management LP now owns 1,753,595 shares of the company’s stock worth $164,154,000 after buying an additional 210,000 shares during the period. 86.07% of the stock is owned by institutional investors and hedge funds.

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.