Shake Shack (NYSE:SHAK) Trading 7.8% Higher – Still a Buy?

Shake Shack Inc. (NYSE:SHAK)’s stock price shot up 7.8% during trading on Tuesday . The company traded as high as $115.50 and last traded at $116.82. 569,715 shares traded hands 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.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Stifel Nicolaus decreased their price objective on shares of Shake Shack from $128.00 to $110.00 and set a “hold” rating for the company in a research report on Friday, January 17th. UBS Group lifted their price target on Shake Shack from $130.00 to $140.00 and gave the stock a “neutral” rating in a report on Tuesday, January 7th. Oppenheimer increased their price objective on Shake Shack from $145.00 to $155.00 and gave the company an “outperform” rating in a report on Tuesday, January 7th. Truist Financial decreased their target price on Shake Shack from $149.00 to $143.00 and set a “buy” rating for the company in a research note on Tuesday, January 14th. Finally, Barclays upgraded shares of Shake Shack from an “equal weight” rating to an “overweight” rating and increased their price target for the company from $125.00 to $159.00 in a research note on Tuesday, January 7th. Two analysts have rated the stock with a sell rating, eight have issued a hold rating and eight have issued a buy rating to the company. According to MarketBeat.com, Shake Shack currently has a consensus rating of “Hold” and an average price target of $124.29.

Shake Shack Stock Up 6.8 %

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 company has a market capitalization of $4.92 billion, a PE ratio of 681.18 and a beta of 1.86. The firm’s 50-day simple moving average is $123.34 and its 200 day simple moving average is $116.01.

Insider Activity at Shake Shack

In related 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 value of $88,281.42. Following the sale, the chief financial officer now owns 30,717 shares in the company, valued at $4,223,894.67. This represents a 2.05 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Company insiders own 9.73% of the company’s stock.

Institutional Trading of Shake Shack

Institutional investors have recently bought and sold shares of the company. Driehaus Capital Management LLC purchased a new position in shares of Shake Shack in the fourth quarter valued at $66,349,000. Point72 Asset Management L.P. increased its holdings in Shake Shack by 154.8% during the 3rd quarter. Point72 Asset Management L.P. now owns 650,685 shares of the company’s stock valued at $67,157,000 after acquiring an additional 395,311 shares in the last quarter. BNP PARIBAS ASSET MANAGEMENT Holding S.A. acquired a new position in Shake Shack during the third quarter worth about $39,677,000. Holocene Advisors LP raised its position in Shake Shack by 68.3% during the third quarter. Holocene Advisors LP now owns 946,350 shares of the company’s stock worth $97,673,000 after acquiring an additional 384,131 shares during the last quarter. Finally, Invesco Ltd. lifted its holdings in shares of Shake Shack by 30.7% in the fourth quarter. Invesco Ltd. now owns 1,245,093 shares of the company’s stock valued at $161,613,000 after purchasing an additional 292,348 shares in the last quarter. 86.07% of the stock is currently owned by hedge funds and other 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, 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.