Shake Shack (SHAK) Rating Lowered to Hold at Zacks Investment Research

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Shake Shack (NYSE:SHAK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.

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. “

SHAK has been the subject of a number of other research reports. Stifel Nicolaus initiated coverage on Shake Shack in a research report on Tuesday, October 9th. They set a “hold” rating and a $65.00 price target for the company. Wedbush lowered their price target on Shake Shack from $62.00 to $56.00 and set a “neutral” rating for the company in a research report on Friday, November 2nd. Cowen reaffirmed a “hold” rating and set a $59.00 price target on shares of Shake Shack in a research report on Wednesday, July 25th. SunTrust Banks lowered their price target on Shake Shack to $60.00 and set a “buy” rating for the company in a research report on Friday, November 2nd. Finally, Longbow Research raised Shake Shack from a “neutral” rating to a “buy” rating and set a $60.00 price target for the company in a research report on Tuesday. Two research analysts have rated the stock with a sell rating, six have issued a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus price target of $54.50.

SHAK opened at $50.94 on Thursday. The company has a market cap of $1.91 billion, a price-to-earnings ratio of 89.37, a price-to-earnings-growth ratio of 3.35 and a beta of 1.36. Shake Shack has a one year low of $36.58 and a one year high of $70.12.

Shake Shack (NYSE:SHAK) last released its quarterly earnings results on Thursday, November 1st. The company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.08. The business had revenue of $119.65 million during the quarter, compared to analyst estimates of $116.81 million. Shake Shack had a return on equity of 10.64% and a net margin of 0.40%. Shake Shack’s quarterly revenue was up 26.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.17 EPS. On average, equities research analysts forecast that Shake Shack will post 0.69 earnings per share for the current fiscal year.

In other news, major shareholder Equity Group L.P. Select sold 57,404 shares of the stock in a transaction that occurred on Tuesday, October 23rd. The stock was sold at an average price of $53.56, for a total value of $3,074,558.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Daniel Harris Meyer sold 10,000 shares of the stock in a transaction that occurred on Tuesday, September 25th. The stock was sold at an average price of $60.24, for a total value of $602,400.00. Following the completion of the transaction, the director now directly owns 1,032 shares of the company’s stock, valued at approximately $62,167.68. The disclosure for this sale can be found here. Insiders sold a total of 1,284,560 shares of company stock valued at $74,700,300 in the last three months. Corporate insiders own 30.18% of the company’s stock.

A number of hedge funds have recently bought and sold shares of SHAK. Rehmann Capital Advisory Group bought a new position in Shake Shack during the 2nd quarter valued at approximately $124,000. Advisors Asset Management Inc. increased its position in Shake Shack by 50.7% during the 2nd quarter. Advisors Asset Management Inc. now owns 3,202 shares of the company’s stock valued at $212,000 after buying an additional 1,077 shares in the last quarter. HM Payson & Co. bought a new position in Shake Shack during the 2nd quarter valued at approximately $249,000. Pinebridge Investments L.P. bought a new position in Shake Shack during the 2nd quarter valued at approximately $250,000. Finally, Amalgamated Bank bought a new position in Shake Shack during the 2nd quarter valued at approximately $261,000. 87.50% 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 October 9, 2018, it operated 180 locations in 26 U.S.

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