Shake Shack (NYSE:SHAK) Stock Rating Upgraded by Zacks Research

Shake Shack (NYSE:SHAK) was upgraded by Zacks Research from a “strong sell” rating to a “hold” rating in a research note issued on Wednesday,Zacks.com reports.

A number of other analysts have also weighed in on SHAK. Wells Fargo & Company reduced their price target on shares of Shake Shack from $80.00 to $65.00 and set an “equal weight” rating for the company in a research note on Wednesday, June 3rd. Stifel Nicolaus upgraded shares of Shake Shack from a “hold” rating to a “buy” rating and decreased their price objective for the company from $105.00 to $85.00 in a report on Friday, May 8th. BNP Paribas Exane raised their price objective on shares of Shake Shack from $77.00 to $81.00 and gave the company an “outperform” rating in a research note on Thursday. Barclays dropped their target price on Shake Shack from $118.00 to $96.00 and set an “overweight” rating on the stock in a report on Friday, May 8th. Finally, Oppenheimer set a $82.00 target price on Shake Shack and gave the stock an “outperform” rating in a research report on Tuesday, June 2nd. Fifteen research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Shake Shack has a consensus rating of “Moderate Buy” and an average price target of $89.74.

Shake Shack Price Performance

Shares of NYSE SHAK opened at $70.17 on Wednesday. Shake Shack has a fifty-two week low of $51.60 and a fifty-two week high of $114.39. The firm’s 50-day simple moving average is $58.50 and its 200 day simple moving average is $78.03. The company has a quick ratio of 1.66, a current ratio of 1.67 and a debt-to-equity ratio of 0.43. The stock has a market cap of $3.00 billion, a P/E ratio of 74.65, a P/E/G ratio of 5.90 and a beta of 1.63.

Shake Shack (NYSE:SHAK) last announced its 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 firm had revenue of $417.62 million during the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. Shake Shack’s revenue was up 17.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.44 EPS. Equities analysts expect that Shake Shack will post 1.1 EPS for the current year.

Insider Buying and Selling

In other Shake Shack news, CEO Robert Lynch acquired 5,000 shares of the stock in a transaction dated Friday, May 15th. The shares were bought at an average price of $60.39 per share, with a total value of $301,950.00. Following the purchase, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at approximately $4,701,059.55. This trade represents a 6.86% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Josh Silverman bought 8,290 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average price of $60.38 per share, for a total transaction of $500,550.20. Following the completion of the acquisition, the director directly owned 8,290 shares in the company, valued at approximately $500,550.20. This represents a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders have acquired 50,616 shares of company stock worth $3,109,782. 8.32% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. Hilton Head Capital Partners LLC acquired a new stake in shares of Shake Shack during the 4th quarter valued at $25,000. Geneos Wealth Management Inc. acquired a new position in shares of Shake Shack in the 1st quarter worth $26,000. Assetmark Inc. grew its holdings in shares of Shake Shack by 457.6% in the 4th quarter. Assetmark Inc. now owns 368 shares of the company’s stock worth $30,000 after acquiring an additional 302 shares during the last quarter. UMB Bank n.a. raised its position in shares of Shake Shack by 42.2% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after purchasing an additional 116 shares during the period. Finally, Advisory Services Network LLC acquired a new stake in shares of Shake Shack during the third quarter worth $38,000. Institutional investors own 86.07% of the company’s stock.

Key Shake Shack News

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

• Positive Sentiment: Activist investor involvement: Starboard Value disclosed a stake worth several hundred million dollars. The investment may increase pressure for operational improvements, margin expansion or other shareholder-friendly actions, initially supporting investor sentiment. Starboard Value discloses a sizable Shake Shack stake
• Positive Sentiment: Analysts raised price targets: DA Davidson lifted its target from $70 to $85 and upgraded the stock to “buy,” while BNP Paribas Exane raised its target from $77 to $81 and assigned an “outperform” rating. The revisions suggest analysts see meaningful upside despite recent volatility. Shake Shack analyst price-target revisions
• Positive Sentiment: Quarterly results exceeded expectations: Second-quarter earnings were $0.43 per share versus the $0.31 consensus estimate, while revenue reached $417.62 million, essentially matching estimates and increasing 17.2% year over year. Shake Shack also expects fiscal 2026 revenue of approximately $1.6 billion to $1.7 billion and plans to open 60 to 65 company-operated restaurants. Shake Shack Q2 earnings and revenue results
• Neutral Sentiment: Expansion and brand coverage: New restaurants in Highland Village and Stuyvesant Plaza, along with favorable consumer coverage of Shake Shack’s frozen custard, support continued brand growth but are unlikely to materially change near-term earnings expectations. Shake Shack Highland Village opening
• Negative Sentiment: Margin pressure remains the key concern: Beef inflation and higher operating expenses caused profit to slip from $0.44 per share a year ago to $0.43, despite strong revenue growth. Management’s shift to annual-only guidance also reduces near-term visibility, while the stock’s high earnings multiple leaves less room for execution disappointments. Shake Shack revenue rises while profit slips

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.