Morgan Stanley Boosts Shake Shack (SHAK) Price Target to $56.00

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Shake Shack (NYSE:SHAK) had its price target boosted by equities research analysts at Morgan Stanley from $52.00 to $56.00 in a note issued to investors on Friday, BenzingaRatingsTable reports. The brokerage currently has an “equal weight” rating on the stock. Morgan Stanley’s target price suggests a potential downside of 6.98% from the company’s current price.

A number of other analysts have also commented on SHAK. Zacks Investment Research raised Shake Shack from a “sell” rating to a “hold” rating in a research note on Friday, March 29th. Stifel Nicolaus lifted their price target on Shake Shack from $45.00 to $50.00 and gave the company a “hold” rating in a research note on Friday. SunTrust Banks lifted their price target on Shake Shack to $70.00 and gave the company a “buy” rating in a research note on Friday. Longbow Research lowered Shake Shack from a “buy” rating to a “neutral” rating and set a $58.80 price target on the stock. in a research note on Wednesday, April 17th. They noted that the move was a valuation call. Finally, Wedbush cut their price target on Shake Shack from $56.00 to $54.00 and set a “neutral” rating on the stock in a research note on Tuesday, February 26th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and two have given a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $55.09.

Shares of SHAK stock traded down $2.71 during mid-day trading on Friday, reaching $60.20. 4,476,891 shares of the stock traded hands, compared to its average volume of 538,200. Shake Shack has a 1-year low of $40.67 and a 1-year high of $70.12. The firm has a market capitalization of $2.23 billion, a price-to-earnings ratio of 84.79, a PEG ratio of 4.32 and a beta of 1.44.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings results on Thursday, May 2nd. The company reported $0.13 EPS for the quarter, meeting the Zacks’ consensus estimate of $0.13. Shake Shack had a return on equity of 9.81% and a net margin of 2.88%. The firm had revenue of $132.60 million for the quarter, compared to analyst estimates of $127.23 million. During the same period last year, the firm posted $0.15 earnings per share. The business’s revenue for the quarter was up 33.7% on a year-over-year basis. As a group, analysts forecast that Shake Shack will post 0.59 EPS for the current year.

In related news, Director Jonathan D. Sokoloff sold 3,517 shares of Shake Shack stock in a transaction that occurred on Wednesday, February 13th. The stock was sold at an average price of $53.00, for a total value of $186,401.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, Director Daniel Harris Meyer sold 75,000 shares of Shake Shack stock in a transaction that occurred on Wednesday, May 1st. The stock was sold at an average price of $61.55, for a total value of $4,616,250.00. Following the completion of the transaction, the director now directly owns 1,032 shares in the company, valued at $63,519.60. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 962,886 shares of company stock worth $54,179,276. 30.18% of the stock is owned by insiders.

Several institutional investors have recently bought and sold shares of SHAK. Truvestments Capital LLC acquired a new position in Shake Shack in the first quarter valued at approximately $80,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its stake in Shake Shack by 27.7% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 1,799 shares of the company’s stock valued at $82,000 after buying an additional 390 shares during the period. LS Investment Advisors LLC lifted its stake in Shake Shack by 155.3% in the fourth quarter. LS Investment Advisors LLC now owns 4,176 shares of the company’s stock valued at $190,000 after buying an additional 2,540 shares during the period. Xact Kapitalforvaltning AB lifted its stake in Shake Shack by 17.5% in the fourth quarter. Xact Kapitalforvaltning AB now owns 4,700 shares of the company’s stock valued at $213,000 after buying an additional 700 shares during the period. Finally, LPL Financial LLC lifted its stake in Shake Shack by 5.2% in the fourth quarter. LPL Financial LLC now owns 5,015 shares of the company’s stock valued at $228,000 after buying an additional 248 shares during the period. 82.88% of the stock is currently 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.

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Analyst Recommendations for Shake Shack (NYSE:SHAK)

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