Shake Shack (SHAK) Cut to “Hold” at Zacks Investment Research

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

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. “

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A number of other equities analysts have also recently commented on the company. Jefferies Group cut Shake Shack from a “hold” rating to an “underperform” rating and set a $36.00 target price for the company. in a report on Saturday, December 30th. SunTrust Banks set a $54.00 target price on Shake Shack and gave the company a “buy” rating in a report on Friday, February 16th. Barclays reissued an “equal weight” rating and set a $49.00 target price (up previously from $36.00) on shares of Shake Shack in a report on Tuesday, January 16th. TheStreet cut Shake Shack from a “c” rating to a “d+” rating in a report on Friday, March 16th. Finally, Wedbush reissued a “hold” rating and set a $38.00 target price on shares of Shake Shack in a report on Friday, February 16th. One research analyst has rated the stock with a sell rating, five have issued a hold rating, four have given a buy rating and two have given a strong buy rating to the company’s stock. The company has an average rating of “Buy” and a consensus target price of $41.63.

Shares of Shake Shack stock opened at $43.15 on Friday. Shake Shack has a 12 month low of $30.12 and a 12 month high of $47.39. The company has a market cap of $1,613.13, a price-to-earnings ratio of 75.70, a PEG ratio of 4.29 and a beta of 1.29.

Shake Shack (NYSE:SHAK) last announced its earnings results on Thursday, February 15th. The company reported $0.10 EPS for the quarter, beating analysts’ consensus estimates of $0.06 by $0.04. Shake Shack had a positive return on equity of 9.47% and a negative net margin of 0.63%. The business had revenue of $96.14 million during the quarter, compared to analysts’ expectations of $92.80 million. During the same quarter in the prior year, the firm earned $0.09 earnings per share. The business’s revenue was up 31.2% compared to the same quarter last year. equities research analysts expect that Shake Shack will post 0.45 EPS for the current fiscal year.

In other Shake Shack news, CEO Randall J. Garutti sold 40,000 shares of the firm’s stock in a transaction on Thursday, January 25th. The stock was sold at an average price of $44.70, for a total transaction of $1,788,000.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, COO Zach Koff sold 3,000 shares of the firm’s stock in a transaction on Friday, March 2nd. The stock was sold at an average price of $40.98, for a total value of $122,940.00. Following the sale, the chief operating officer now directly owns 6,978 shares of the company’s stock, valued at approximately $285,958.44. The disclosure for this sale can be found here. In the last ninety days, insiders sold 388,000 shares of company stock valued at $15,948,997. Insiders own 34.91% of the company’s stock.

A number of hedge funds have recently bought and sold shares of the business. BlackRock Inc. increased its stake in Shake Shack by 3.3% during the fourth quarter. BlackRock Inc. now owns 2,429,663 shares of the company’s stock worth $104,963,000 after acquiring an additional 77,844 shares during the last quarter. OppenheimerFunds Inc. increased its stake in Shake Shack by 39.1% during the fourth quarter. OppenheimerFunds Inc. now owns 1,005,241 shares of the company’s stock worth $43,427,000 after acquiring an additional 282,404 shares during the last quarter. Wells Fargo & Company MN increased its stake in Shake Shack by 866.7% during the fourth quarter. Wells Fargo & Company MN now owns 241,473 shares of the company’s stock worth $10,432,000 after acquiring an additional 216,494 shares during the last quarter. Bank of New York Mellon Corp increased its stake in Shake Shack by 8.3% during the fourth quarter. Bank of New York Mellon Corp now owns 217,256 shares of the company’s stock worth $9,385,000 after acquiring an additional 16,647 shares during the last quarter. Finally, Maverick Capital Ltd. acquired a new stake in Shake Shack during the fourth quarter worth $7,601,000. 82.42% of the stock is owned by institutional investors.

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Shake Shack Company Profile

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 27, 2017, it had 159 Shacks, including 90 domestic company-operated Shacks, 10 domestic licensed Shacks, and 59 international licensed Shacks.

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