As of Thursday close, Shake Shack Inc.’s (NYSE:SHAK) stock was down -$0.36, moving down -0.48 percent to $74.67. The average number of shares traded per day over the past five days has been 976,660 shares. 2 times new highs have been achieved over the past 5 days, with a -$1.80 fall in that time frame. In the last twenty days, the average volume was 691,160, while in the previous 50 days, it was 719,724.
Since last month, SHAK stock retreated -3.36%. Shares of the company fell to $70.14 on 08/03/23, the lowest level in the past month. A 52-week high of $80.58 was reached on 07/19/23 after having rallying from a 52-week low of $40.83. Since the beginning of this year, SHAK’s stock price has risen by 79.80% or $33.14, and marked a new high 27 times. However, the stock has declined by -7.33% since its 52-week high.
SHAK stock investors should be aware that Shake Shack Inc. (SHAK) stock had its last reported insider trading activity 44 days ago on Jun 21. Koff Zach, the Chief Operating Officer of the company, disposed of 5,000 shares for $75.00 on Jun 21. It resulted in a $375,000 divestment by the insider. Koff Zach sold 5,000 shares at an average price of $60.00 on Feb 02. The insider now owns 31,085 shares following the transaction. On Feb 02, Director Flug Jeffrey sold 1,864 shares at $60.07 apiece. The transaction was valued at $111,970.
Valuation Metrics
The stock’s beta is 1.71. Besides these, the trailing price-to-sales (P/S) ratio of 3.34, the price-to-book (PB) ratio of 7.43.
Financial Health
In the three months ended March 30, Shake Shack Inc.’s quick ratio stood at 2.30, while its current ratio was 2.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending March 30 was 0.63, and the total debt-to-equity ratio was 0.64. On the profitability front, the trailing twelve-month gross margin is 42.80% percent. In the year ended March 30, EBITDA margin amounted to 13.73%, whereas operating margins totaled -1.60%. Based on annual data, SHAK earned $182.17 million in gross profit and brought in $900.49 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -4.40%. Return on equity (ROE) for the past 12 months was -3.90%.
In Shake Shack Inc.’s quarter-end financial report for March 30, it reported total debt of $244.85 million. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. SHAK’s revenue rose 19.7% to $238.53 million during the quarter, while net income inched up to $253.28 million. While analysts expected Shake Shack Inc. to report -$0.08 quarterly earnings, the actual figure was -$0.01 per share, beating the consensus estimate by 87.50%. During the quarter, the company generated $18.83 million in EBITDA. The liabilities of Shake Shack Inc. were 1.09 billion at the end of its most recent quarter ended March 30, and its total debt was $737.33 million. The value of shareholders’ equity is $42.25 million.
Technical Picture
This quick technical analysis looks at Shake Shack Inc.’s (SHAK) price momentum. With a historical volatility rate of 24.07%, the RSI 9-day stood at 36.81% on 03 August.
With respect to its five-day moving average, the current Shake Shack Inc. price is down by -2.35% percent or -$1.80. At present, SHAK shares trade -3.01% below its 20-day simple moving average and +36.93% percent above its 100-day simple moving average. However, the stock is currently trading approximately +12.00% above its SMA50 and +56.12% above its SMA200.
Stochastic coefficient K was 25.29% and Stochastic coefficient D was 24.67%, while ATR was 2.19. Given the Stochastic reading of 43.39% for the 14-day period, the RSI (14) reading has been calculated as 44.11%. As of today, the MACD Oscillator reading stands at -0.92, while the 14-day reading stands at -1.73.
Analyst Ratings
Morgan Stanley reiterated its an Equal-weight rating on Shake Shack Inc. (NYSE: SHAK) in a note to investors. The analysts firm has however raised their price target to $68, representing a possible -18.52% increase in the stock price. Shake Shack Inc. (SHAK) has been rated Overweight by analysts. According to 1 brokerage firm, SHAK is a sell, and 11 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Shake Shack Inc. stock as buy, with 6 recommending it as overweight.
With a median target price of $72.50, the current consensus forecast for the stock is $60.00 – $95.00. Based on these forecasts, analysts predict Shake Shack Inc. (SHAK) will achieve an average price target of $74.63.
