Shake Shack (NYSE:SHAK) Stock Rating Lowered by Zacks Research

Shake Shack (NYSE:SHAK) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report released 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 also recently commented on the stock. Oppenheimer set a $82.00 price objective on shares of Shake Shack and gave the company an “outperform” rating in a report on Tuesday, June 2nd. Jefferies Financial Group restated a “hold” rating and set a $66.00 target price on shares of Shake Shack in a research note on Tuesday, June 2nd. Wall Street Zen downgraded shares of Shake Shack from a “hold” rating to a “strong sell” rating in a report on Saturday, May 16th. Mizuho set a $100.00 price target on shares of Shake Shack in a research note on Friday, May 8th. Finally, UBS Group reissued a “neutral” rating and issued a $79.00 price target on shares of Shake Shack in a report on Wednesday, June 3rd. Fifteen investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $91.00.

Shake Shack Price Performance

NYSE:SHAK opened at $54.24 on Tuesday. Shake Shack has a 12-month low of $51.60 and a 12-month high of $144.65. The firm has a market capitalization of $2.32 billion, a price-to-earnings ratio of 55.35, a P/E/G ratio of 2.44 and a beta of 1.63. The stock’s 50 day moving average price is $63.12 and its two-hundred day moving average price is $82.05. 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, CEO Robert Lynch purchased 5,000 shares of Shake Shack stock in a transaction that occurred on Friday, May 15th. The shares were acquired at an average price of $60.39 per share, with a total value of $301,950.00. Following the completion of the transaction, the chief executive officer directly owned 77,845 shares of the company’s stock, valued at $4,701,059.55. This represents a 6.86% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Jeffrey Flug acquired 1,000 shares of the stock in a transaction on Friday, May 15th. The shares were bought at an average price of $61.30 per share, for a total transaction of $61,300.00. Following the purchase, the director owned 5,470 shares in the company, valued at approximately $335,311. This trade represents a 22.37% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased a total of 50,616 shares of company stock valued at $3,109,782 in the last quarter. Company insiders own 8.32% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of SHAK. Hilton Head Capital Partners LLC bought a new stake in shares of Shake Shack during the 4th quarter valued at approximately $25,000. Geneos Wealth Management Inc. acquired a new stake in Shake Shack in the first quarter valued at approximately $26,000. Assetmark Inc. grew its stake in shares of Shake Shack by 457.6% during the fourth quarter. Assetmark Inc. now owns 368 shares of the company’s stock worth $30,000 after buying an additional 302 shares during the last quarter. UMB Bank n.a. grew its stake in shares of Shake Shack by 42.2% during the fourth quarter. UMB Bank n.a. now owns 391 shares of the company’s stock worth $32,000 after buying an additional 116 shares during the last quarter. Finally, Advisory Services Network LLC acquired a new position in shares of Shake Shack during the third quarter worth $38,000. Institutional investors own 86.07% of the company’s stock.

Shake Shack News Roundup

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.