Shake Shack Inc. [NYSE: SHAK] gained 2.68% or 1.31 points to close at $50.22 with a heavy trading volume of 1171471 shares. The company report on July 30, 2020 that Shake Shack Announces Second Quarter 2020 Financial Results.
Average Weekly Sales show sequential improvement across both licensed and company-operated locationsStrong digital channel performance, at 75% of total Shack sales, with sales doubling compared to first quarter 2020Suburban Shacks outperforming those in dense urban locations which remain heavily impacted by business, travel and tourism.
Shake Shack Inc. (“Shake Shack” or the “Company”) (NYSE: SHAK) today reported its financial results for the second quarter ended June 24, 2020, a period that included 13 weeks.
It opened the trading session at $48.94, the shares rose to $50.66 and dropped to $48.515, the range by which the price of stock traded the whole day. The daily chart for SHAK points out that the company has recorded -31.51% loss over the past six months. However, it is still -67.34% lower than its most recent low trading price.
If we look at the average trading volume of 1.47M shares, SHAK reached to a volume of 1171471 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Shake Shack Inc. [SHAK]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SHAK shares is $51.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SHAK stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BTIG Research have made an estimate for Shake Shack Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on April 21, 2020. While these analysts kept the previous recommendation, Credit Suisse dropped their target price from $76 to $40. The new note on the price target was released on April 03, 2020, representing the official price target for Shake Shack Inc. stock. Previously, the target price had yet another drop from $100 to $40, while Goldman kept a Neutral rating on SHAK stock. On February 21, 2020, analysts decreased their price target for SHAK shares from 82 to 79.
The Average True Range (ATR) for Shake Shack Inc. is set at 2.74, with the Price to Sales ratio for SHAK stock in the period of the last 12 months amounting to 4.33. The Price to Book ratio for the last quarter was 5.76, with the Price to Cash per share for the same quarter was set at 2.22.
Trading performance analysis for SHAK stock
Shake Shack Inc. [SHAK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -9.05. With this latest performance, SHAK shares gained by 2.39% in over the last four-week period, additionally sinking by -31.51% over the last 6 months – not to mention a drop of -41.08% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SHAK stock in for the last two-week period is set at 45.79, with the RSI for the last a single of trading hit 47.28, and the three-weeks RSI is set at 47.91 for Shake Shack Inc. [SHAK]. The present Moving Average for the last 50 days of trading for this stock 52.89, while it was recorded at 49.52 for the last single week of trading, and 56.95 for the last 200 days.
Shake Shack Inc. [SHAK]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Shake Shack Inc. [SHAK] shares currently have an operating margin of +7.04 and a Gross Margin at +18.03. Shake Shack Inc.’s Net Margin is presently recorded at +3.33.
Return on Total Capital for SHAK is now 8.75, given the latest momentum, and Return on Invested Capital for the company is 4.64. Return on Equity for this stock inclined to 7.55, with Return on Assets sitting at 2.50. When it comes to the capital structure of this company, Shake Shack Inc. [SHAK] has a Total Debt to Total Equity ratio set at 113.93. Additionally, SHAK Total Debt to Total Capital is recorded at 53.25, with Total Debt to Total Assets ending up at 34.99. Long-Term Debt to Equity for the company is recorded at 103.26, with the Long-Term Debt to Total Capital now at 48.27.
Reflecting on the efficiency of the workforce at the company, Shake Shack Inc. [SHAK] managed to generate an average of $2,608 per employee. Receivables Turnover for the company is 57.92 with a Total Asset Turnover recorded at a value of 0.75.Shake Shack Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.10.
Shake Shack Inc. [SHAK]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Shake Shack Inc. posted 0.26/share EPS, while the average EPS was predicted by analysts to be reported at 0.2/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 30.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SHAK.
An analysis of insider ownership at Shake Shack Inc. [SHAK]
There are presently around $1,719 million, or 91.00% of SHAK stock, in the hands of institutional investors. The top three institutional holders of SHAK stocks are: BLACKROCK INC. with ownership of 4,356,498, which is approximately -3.287% of the company’s market cap and around 0.40% of the total institutional ownership; VANGUARD GROUP INC, holding 3,098,225 shares of the stock with an approximate value of $155.59 million in SHAK stocks shares; and SELECT EQUITY GROUP, L.P., currently with $145.32 million in SHAK stock with ownership of nearly New of the company’s market capitalization.
Positions in Shake Shack Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 135 institutional holders increased their position in Shake Shack Inc. [NYSE:SHAK] by around 9,461,426 shares. Additionally, 97 investors decreased positions by around 5,360,557 shares, while 37 investors held positions by with 19,403,016 shares. The mentioned changes placed institutional holdings at 34,224,999 shares, according to the latest SEC report filing. SHAK stock had 53 new institutional investments in for a total of 4,514,402 shares, while 42 institutional investors sold positions of 2,262,035 shares during the same period.