Shake Shack Inc (NYSE: SHAK)’s stock price has increased by 1.85 compared to its previous closing price of 99.54. However, the company has seen a 6.46% increase in its stock price over the last five trading sessions. Zacks Investment Research reported 2024-04-22 that The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now.
Is It Worth Investing in Shake Shack Inc (NYSE: SHAK) Right Now?
Shake Shack Inc (NYSE: SHAK) has a higher price-to-earnings ratio of 221.21x compared to its average ratio. SHAK has 36-month beta value of 1.80. Analysts have mixed views on the stock, with 3 analysts rating it as a “buy,” 1 as “overweight,” 5 as “hold,” and 2 as “sell.”
The public float for SHAK is 37.47M, and currently, short sellers hold a 9.71% ratio of that float. The average trading volume of SHAK on April 26, 2024 was 961.56K shares.
SHAK’s Market Performance
SHAK stock saw a decrease of 6.46% in the past week, with a monthly decline of -0.98% and a quarterly a decrease of 38.31%. The volatility ratio for the week is 3.57%, and the volatility levels for the last 30 days are 3.10% for Shake Shack Inc (SHAK). The simple moving average for the last 20 days is 1.81% for SHAK stock, with a simple moving average of 34.47% for the last 200 days.
Analysts’ Opinion of SHAK
Many brokerage firms have already submitted their reports for SHAK stocks, with Oppenheimer repeating the rating for SHAK by listing it as a “Outperform.” The predicted price for SHAK in the upcoming period, according to Oppenheimer is $120 based on the research report published on March 22, 2024 of the current year 2024.
TD Cowen, on the other hand, stated in their research note that they expect to see SHAK reach a price target of $125, previously predicting the price at $91. The rating they have provided for SHAK stocks is “Outperform” according to the report published on March 07th, 2024.
HSBC Securities gave a rating of “Hold” to SHAK, setting the target price at $74 in the report published on December 20th of the previous year.
SHAK Trading at 0.95% from the 50-Day Moving Average
After a stumble in the market that brought SHAK to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -8.58% of loss for the given period.
Volatility was left at 3.10%, however, over the last 30 days, the volatility rate increased by 3.57%, as shares sank -2.78% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +30.61% upper at present.
During the last 5 trading sessions, SHAK rose by +6.46%, which changed the moving average for the period of 200-days by +29.61% in comparison to the 20-day moving average, which settled at $99.43. In addition, Shake Shack Inc saw 36.78% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SHAK starting from Flug Jeffrey, who sale 304 shares at the price of $103.01 back on Apr 04 ’24. After this action, Flug Jeffrey now owns 3,754 shares of Shake Shack Inc, valued at $31,315 using the latest closing price.
Flug Jeffrey, the Director of Shake Shack Inc, sale 304 shares at $108.05 during a trade that took place back on Mar 04 ’24, which means that Flug Jeffrey is holding 4,058 shares at $32,846 based on the most recent closing price.
Stock Fundamentals for SHAK
Current profitability levels for the company are sitting at:
- 0.01 for the present operating margin
- 0.34 for the gross margin
The net margin for Shake Shack Inc stands at 0.02. The total capital return value is set at 0.01. Equity return is now at value 4.72, with 1.27 for asset returns.
Based on Shake Shack Inc (SHAK), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.65. The debt to equity ratio resting at 0.67. The interest coverage ratio of the stock is 9.04.
Currently, EBITDA for the company is 188.98 million with net debt to EBITDA at 3.97. When we switch over and look at the enterprise to sales, we see a ratio of 4.17. The receivables turnover for the company is 64.55for trailing twelve months and the total asset turnover is 0.68. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.04.
Conclusion
To put it simply, Shake Shack Inc (SHAK) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
