Shake Shack (NYSE:SHAK) Downgraded to “Strong Sell” Rating by Zacks Research

Zacks Research lowered shares of Shake Shack (NYSE:SHAK) from a hold rating to a strong sell rating in a report issued on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Shake Shack’s Q1 2027 earnings at $0.07 EPS, Q2 2027 earnings at $0.43 EPS, Q3 2027 earnings at $0.36 EPS, Q4 2027 earnings at $0.40 EPS, FY2027 earnings at $1.26 EPS, Q1 2028 earnings at $0.23 EPS, Q2 2028 earnings at $0.51 EPS and FY2028 earnings at $1.68 EPS.

Several other equities analysts have also recently issued reports on the company. Bank of America raised Shake Shack from an “underperform” rating to a “neutral” rating and boosted their target price for the company from $88.00 to $101.00 in a research note on Tuesday, March 31st. TD Cowen reiterated a “hold” rating and issued a $70.00 price target on shares of Shake Shack in a report on Wednesday, June 3rd. The Goldman Sachs Group reiterated a “buy” rating on shares of Shake Shack in a report on Friday, May 8th. Citigroup reissued a “buy” rating on shares of Shake Shack in a research report on Wednesday, June 3rd. Finally, Jefferies Financial Group restated a “hold” rating and issued a $66.00 price objective on shares of Shake Shack in a report on Tuesday, June 2nd. Fifteen research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of “Hold” and an average target price of $91.00.

Shake Shack Price Performance

SHAK stock opened at $54.24 on Tuesday. The stock has a market capitalization of $2.32 billion, a price-to-earnings ratio of 55.35, a PEG ratio of 2.44 and a beta of 1.63. The firm’s 50-day moving average price is $63.12 and its two-hundred day moving average price is $82.05. The company has a current ratio of 1.69, a quick ratio of 1.66 and a debt-to-equity ratio of 0.45. Shake Shack has a 12-month low of $51.60 and a 12-month high of $144.65.

Insider Transactions at Shake Shack

In other news, Director Sumaiya Balbale bought 4,068 shares of the stock in a transaction dated Friday, May 15th. The stock was bought at an average price of $61.42 per share, for a total transaction of $249,856.56. Following the purchase, the director directly owned 13,407 shares in the company, valued at $823,457.94. This trade represents a 43.56% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Daniel Harris Meyer purchased 32,258 shares of the company’s stock in a transaction that occurred on Friday, May 15th. The shares were purchased at an average price of $61.88 per share, for a total transaction of $1,996,125.04. Following the completion of the transaction, the director directly owned 378,670 shares of the company’s stock, valued at $23,432,099.60. This represents a 9.31% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders have purchased 50,616 shares of company stock worth $3,109,782. 8.32% of the stock is owned by insiders.

Institutional Trading of Shake Shack

A number of hedge funds have recently modified their holdings of SHAK. Swedbank AB bought a new position in shares of Shake Shack in the 4th quarter worth about $84,092,000. Adage Capital Partners GP L.L.C. purchased a new position in Shake Shack during the 4th quarter valued at about $40,829,000. Wellington Management Group LLP boosted its stake 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 worth $242,535,000 after acquiring an additional 450,406 shares in the last quarter. Marshall Wace LLP boosted its stake in Shake Shack by 285.2% during the third quarter. Marshall Wace LLP now owns 586,999 shares of the company’s stock worth $54,949,000 after acquiring an additional 434,625 shares in the last quarter. Finally, Renaissance Technologies LLC purchased a new stake in Shake Shack in the fourth quarter worth about $20,455,000. Institutional investors own 86.07% of the company’s stock.

More Shake Shack News

Here are the key news stories impacting Shake Shack this week:

• Negative Sentiment: Zacks Research lowered Shake Shack’s Q1 2027 EPS estimate to $0.07 from $0.13, signaling weaker expected profitability in the near term.
• Negative Sentiment: The firm also trimmed Q2 2027, Q3 2027, Q4 2027, Q1 2028, and Q2 2028 estimates, pointing to a more conservative outlook across several future quarters.
• Negative Sentiment: FY2027 EPS was cut to $1.26 from $1.39, and FY2028 EPS was reduced to $1.68 from $1.81, which may weigh on valuation expectations. SHAK analyst estimate updates
• Neutral Sentiment: Additional media coverage touched on Shake Shack in broader restaurant and consumer-food stories, but these items did not appear to be material stock-moving catalysts. Dairy Queen hires Shake Shack vet to modernize tech

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.