Zacks Investment Research Upgrades Shake Shack (NYSE:SHAK) to “Buy”

Zacks Investment Research upgraded shares of Shake Shack (NYSE:SHAK) from a hold rating to a buy rating in a research note published on Friday, Zacks.com reports. Zacks Investment Research currently has $83.00 target price on the stock.

According to Zacks, “Shake Shack Inc. is engaged in owning and operating restaurants. The company offers burgers, hot dogs, frozen custard, crinkle cut fries, beer and wine. It operates primarily in New York, New Jersey, Washington, D.C., Connecticut, Georgia, Illinois, Pennsylvania, Florida, Massachusetts, Virginia, Nevada, London, Istanbul and Dubai. Shake Shack Inc. is headquartered in New York. “

A number of other brokerages also recently commented on SHAK. ValuEngine upgraded shares of Zuora from a hold rating to a buy rating in a research report on Saturday, July 6th. SunTrust Banks raised their price objective on shares of Paylocity to $108.00 and gave the company a positive rating in a research report on Friday, May 3rd. Piper Jaffray Companies set a $173.00 price objective on shares of DexCom and gave the company a buy rating in a research report on Monday, July 15th. Credit Suisse Group initiated coverage on shares of Arco Platform in a research report on Tuesday, June 25th. They issued a neutral rating for the company. Finally, Morgan Stanley set a $226.00 price objective on shares of S&P Global and gave the company a hold rating in a research report on Friday, May 3rd. Seven investment analysts have rated the stock with a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company’s stock. The company has an average rating of Buy and a consensus target price of $63.17.

Shares of NYSE:SHAK opened at $74.21 on Friday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 1.15 and a current ratio of 1.17. The firm has a market capitalization of $2.76 billion, a P/E ratio of 104.52, a P/E/G ratio of 5.59 and a beta of 1.41. Shake Shack has a 52 week low of $40.67 and a 52 week high of $76.49. The firm has a 50-day moving average price of $69.38.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings data on Thursday, May 2nd. The company reported $0.13 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.13. The firm had revenue of $132.60 million during the quarter, compared to the consensus estimate of $127.23 million. Shake Shack had a net margin of 2.88% and a return on equity of 9.64%. The firm’s revenue was up 33.7% compared to the same quarter last year. During the same quarter last year, the firm earned $0.15 earnings per share. As a group, analysts predict that Shake Shack will post 0.59 earnings per share for the current fiscal year.

In other Shake Shack news, Director Daniel Harris Meyer sold 21,370 shares of the stock in a transaction dated Wednesday, July 3rd. The shares were sold at an average price of $70.19, for a total value of $1,499,960.30. Following the completion of the transaction, the director now directly owns 1,411 shares of the company’s stock, valued at $99,038.09. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Jonathan D. Sokoloff sold 9,078 shares of the stock in a transaction dated Tuesday, May 7th. The shares were sold at an average price of $57.77, for a total transaction of $524,436.06. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,175,979 shares of company stock valued at $77,557,950. 21.85% of the stock is currently owned by corporate insiders.

Institutional investors have recently modified their holdings of the business. Kistler Tiffany Companies LLC purchased a new position in shares of Shake Shack during the 2nd quarter worth approximately $68,000. Truvestments Capital LLC purchased a new position in shares of Shake Shack during the 1st quarter worth approximately $80,000. LPL Financial LLC increased its stake in shares of Shake Shack by 5.2% during the 4th quarter. LPL Financial LLC now owns 5,015 shares of the company’s stock worth $228,000 after purchasing an additional 248 shares in the last quarter. Everence Capital Management Inc. purchased a new position in shares of Shake Shack during the 1st quarter worth approximately $241,000. Finally, LS Investment Advisors LLC increased its stake in shares of Shake Shack by 4.7% during the 1st quarter. LS Investment Advisors LLC now owns 4,372 shares of the company’s stock worth $259,000 after purchasing an additional 196 shares in the last quarter. 84.63% of the stock is owned by 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, hot dogs, chicken, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. As of December 26, 2018, it operated 208 Shacks, including 124 domestic company-operated Shacks, 12 domestic licensed Shacks, and 72 international licensed Shacks.

Featured Story: What is a blue-chip stock?

Get a free copy of the Zacks research report on Shake Shack (SHAK)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Shake Shack (NYSE:SHAK)

Receive News & Ratings for Shake Shack Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Shake Shack and related companies with MarketBeat.com's FREE daily email newsletter.