Shake Shack (NYSE:SHAK) Stock Price Up 5.2% – Should You Buy?

Shake Shack, Inc. (NYSE:SHAK) rose 5.2% during mid-day trading on Tuesday . The company traded as high as $61.39 and last traded at $61.4150. Approximately 679,151 shares changed hands during mid-day trading, a decline of 63% from the average daily volume of 1,839,838 shares. The stock had previously closed at $58.40.

Analysts Set New Price Targets

SHAK has been the subject of a number of research analyst reports. Citigroup reissued a “buy” rating on shares of Shake Shack in a research report on Wednesday, June 3rd. Stifel Nicolaus upgraded Shake Shack from a “hold” rating to a “buy” rating and reduced their price target for the company from $105.00 to $85.00 in a report on Friday, May 8th. DA Davidson reduced their price target on Shake Shack from $85.00 to $70.00 and set a “buy” rating for the company in a report on Tuesday, June 2nd. Wolfe Research initiated coverage on shares of Shake Shack in a research report on Monday, March 9th. They set an “outperform” rating and a $118.00 price objective on the stock. Finally, Wells Fargo & Company cut their price objective on shares of Shake Shack from $80.00 to $65.00 and set an “equal weight” rating on the stock in a research report on Wednesday, June 3rd. Sixteen equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $94.56.

Shake Shack Stock Performance

The stock has a market cap of $2.62 billion, a P/E ratio of 62.54, a price-to-earnings-growth ratio of 2.56 and a beta of 1.63. The firm’s 50-day moving average is $77.65 and its two-hundred day moving average is $85.22. The company has a quick ratio of 1.66, a current ratio of 1.69 and a debt-to-equity ratio of 0.45.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SHAK. Swedbank AB acquired a new position in Shake Shack during the fourth quarter valued at approximately $84,092,000. Adage Capital Partners GP L.L.C. acquired a new position in Shake Shack during the fourth quarter valued at approximately $40,829,000. Wellington Management Group LLP grew its holdings in Shake Shack by 21.0% during the third quarter. Wellington Management Group LLP now owns 2,590,911 shares of the company’s stock valued at $242,535,000 after purchasing an additional 450,406 shares during the last quarter. Marshall Wace LLP grew its holdings in Shake Shack by 285.2% during the third quarter. Marshall Wace LLP now owns 586,999 shares of the company’s stock valued at $54,949,000 after purchasing an additional 434,625 shares during the last quarter. Finally, Renaissance Technologies LLC acquired a new stake in Shake Shack in the 4th quarter valued at approximately $20,455,000. Institutional investors and hedge funds own 86.07% of the company’s stock.

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.