Shake Shack (NYSE:SHAK) Trading Up 7.8% – Should You Buy?

Shake Shack Inc. (NYSE:SHAK) shot up 7.8% on Tuesday . The company traded as high as $115.50 and last traded at $116.82. 569,715 shares were traded during mid-day trading, a decline of 53% from the average session volume of 1,204,432 shares. The stock had previously closed at $108.40.

Analysts Set New Price Targets

Several equities analysts recently issued reports on SHAK shares. Truist Financial lowered their price objective on Shake Shack from $149.00 to $143.00 and set a “buy” rating on the stock in a research report on Tuesday, January 14th. Stifel Nicolaus dropped their price objective on Shake Shack from $128.00 to $110.00 and set a “hold” rating on the stock in a research report on Friday, January 17th. Barclays raised Shake Shack from an “equal weight” rating to an “overweight” rating and boosted their target price for the stock from $125.00 to $159.00 in a research report on Tuesday, January 7th. Gordon Haskett raised shares of Shake Shack from a “hold” rating to a “buy” rating and set a $154.00 price target on the stock in a report on Wednesday, January 8th. Finally, UBS Group lifted their price target on shares of Shake Shack from $130.00 to $140.00 and gave the stock a “neutral” rating in a research note on Tuesday, January 7th. Two equities research analysts have rated the stock with a sell rating, eight have given a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat, Shake Shack currently has an average rating of “Hold” and a consensus price target of $124.29.

Shake Shack Stock Performance

The business’s fifty day simple moving average is $122.24 and its 200-day simple moving average is $116.17. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.98 and a current ratio of 2.01. The firm has a market capitalization of $5.26 billion, a PE ratio of 728.96 and a beta of 1.86.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings results on Thursday, February 20th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.25 by $0.01. Shake Shack had a net margin of 0.68% and a return on equity of 6.28%. As a group, equities research analysts expect that Shake Shack Inc. will post 0.9 EPS for the current year.

Insider Buying and Selling

In other Shake Shack news, CFO Katherine Irene Fogertey sold 642 shares of the company’s stock in a transaction that occurred on Wednesday, December 11th. The stock was sold at an average price of $137.51, for a total transaction of $88,281.42. Following the sale, the chief financial officer now directly owns 30,717 shares in the company, valued at $4,223,894.67. This represents a 2.05 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. 9.73% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Shake Shack

Large investors have recently modified their holdings of the stock. Driehaus Capital Management LLC purchased a new position in Shake Shack during the fourth quarter worth $66,349,000. Point72 Asset Management L.P. boosted its stake in shares of Shake Shack by 154.8% during the 3rd quarter. Point72 Asset Management L.P. now owns 650,685 shares of the company’s stock worth $67,157,000 after purchasing an additional 395,311 shares during the period. BNP PARIBAS ASSET MANAGEMENT Holding S.A. purchased a new position in shares of Shake Shack during the 3rd quarter worth about $39,677,000. Holocene Advisors LP raised its position in Shake Shack by 68.3% in the 3rd quarter. Holocene Advisors LP now owns 946,350 shares of the company’s stock worth $97,673,000 after purchasing an additional 384,131 shares during the period. Finally, Invesco Ltd. raised its position in Shake Shack by 30.7% in the 4th quarter. Invesco Ltd. now owns 1,245,093 shares of the company’s stock worth $161,613,000 after purchasing an additional 292,348 shares during the period. Institutional investors own 86.07% of the company’s stock.

About Shake Shack

Shake Shack Inc owns, operates, and licenses Shake Shack restaurants (Shacks) in the United States and internationally. Its Shacks offers hamburgers, chicken, hot dogs, crinkle cut fries, shakes, frozen custard, beer, wine, and other products. The company was founded in 2001 and is headquartered in New York, New York.