Shake Shack (NYSE:SHAK) Rating Lowered to Sell at Zacks Investment Research

Zacks Investment Research downgraded shares of Shake Shack (NYSE:SHAK) from a hold rating to a sell rating in a research note released on Wednesday morning, Zacks.com reports.

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. “

Several other brokerages have also recently commented on SHAK. Deutsche Bank assumed coverage on shares of Shake Shack in a report on Monday, September 30th. They set a hold rating and a $90.00 target price on the stock. Raymond James assumed coverage on shares of Shake Shack in a report on Wednesday, January 8th. They set an underperform rating on the stock. SunTrust Banks lowered their target price on shares of Shake Shack from $85.00 to $82.00 and set a buy rating on the stock in a report on Tuesday, January 21st. MKM Partners lowered their target price on shares of Shake Shack from $75.00 to $65.00 and set a neutral rating on the stock in a report on Tuesday, January 7th. Finally, Wedbush reaffirmed a neutral rating and set a $75.00 target price (down from $84.00) on shares of Shake Shack in a report on Tuesday, November 5th. Two analysts have rated the stock with a sell rating, ten have issued a hold rating and four have given a buy rating to the stock. The stock has an average rating of Hold and an average price target of $78.45.

Shake Shack stock opened at $68.45 on Wednesday. The stock has a market cap of $2.57 billion, a P/E ratio of 105.31, a P/E/G ratio of 5.53 and a beta of 1.10. The company has a quick ratio of 1.02, a current ratio of 1.04 and a debt-to-equity ratio of 0.99. Shake Shack has a twelve month low of $47.29 and a twelve month high of $105.84. The company’s 50-day moving average price is $62.12 and its two-hundred day moving average price is $78.44.

Shake Shack (NYSE:SHAK) last announced its earnings results on Monday, November 4th. The company reported $0.26 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.20 by $0.06. Shake Shack had a net margin of 3.69% and a return on equity of 9.50%. The company had revenue of $157.76 million for the quarter, compared to analysts’ expectations of $157.45 million. During the same period last year, the firm earned $0.21 earnings per share. The business’s revenue for the quarter was up 31.9% on a year-over-year basis. Equities analysts anticipate that Shake Shack will post 0.65 earnings per share for the current fiscal year.

In related news, Director Jonathan D. Sokoloff sold 337,857 shares of Shake Shack stock in a transaction that occurred on Monday, January 13th. The shares were sold at an average price of $60.28, for a total value of $20,366,019.96. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Randall J. Garutti sold 30,000 shares of Shake Shack stock in a transaction that occurred on Friday, November 1st. The shares were sold at an average price of $82.54, for a total transaction of $2,476,200.00. Following the completion of the transaction, the chief executive officer now directly owns 60,702 shares in the company, valued at $5,010,343.08. The disclosure for this sale can be found here. Company insiders own 21.85% of the company’s stock.

Large investors have recently made changes to their positions in the stock. SG Americas Securities LLC bought a new position in Shake Shack in the third quarter valued at approximately $118,000. State of Tennessee Treasury Department increased its stake in Shake Shack by 77.9% in the third quarter. State of Tennessee Treasury Department now owns 18,658 shares of the company’s stock valued at $1,829,000 after acquiring an additional 8,170 shares during the last quarter. BlackRock Inc. boosted its position in Shake Shack by 6.1% in the second quarter. BlackRock Inc. now owns 3,899,216 shares of the company’s stock valued at $281,523,000 after buying an additional 224,817 shares in the last quarter. Voya Investment Management LLC boosted its position in Shake Shack by 26.9% in the third quarter. Voya Investment Management LLC now owns 13,042 shares of the company’s stock valued at $1,279,000 after buying an additional 2,765 shares in the last quarter. Finally, Neo Ivy Capital Management acquired a new stake in Shake Shack in the third quarter valued at approximately $184,000. 82.71% of the stock is currently owned by institutional investors and hedge funds.

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 26, 2018, it operated 208 Shacks, including 124 domestic company-operated Shacks, 12 domestic licensed Shacks, and 72 international licensed Shacks.

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