Shake Shack Stock Buy Hold or Sell Recommendation
| SHAK Stock | USD 87.48 4.71 5.69% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Shake Shack is 'Hold'. The recommendation algorithm takes into account all of Shake Shack's available fundamental, technical, and predictive indicators you will find on this site.
Check out Shake Shack Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide. Note, we conduct extensive research on individual companies such as Shake and provide practical buy, sell, or hold advice based on investors' constraints. Shake Shack. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
Shake |
Execute Shake Shack Buy or Sell Advice
The Shake recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Shake Shack. Macroaxis does not own or have any residual interests in Shake Shack or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Shake Shack's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Shake Shack Trading Alerts and Improvement Suggestions
| Shake Shack generated a negative expected return over the last 90 days | |
| Shake Shack has high historical volatility and very poor performance | |
| Over 95.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Wendys Benefits From Robust Comps Growth Amid High Costs |
Shake Shack Returns Distribution Density
The distribution of Shake Shack's historical returns is an attempt to chart the uncertainty of Shake Shack's future price movements. The chart of the probability distribution of Shake Shack daily returns describes the distribution of returns around its average expected value. We use Shake Shack price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Shake Shack returns is essential to provide solid investment advice for Shake Shack.
| Mean Return | -0.64 | Value At Risk | -5.33 | Potential Upside | 5.69 | Standard Deviation | 3.36 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Shake Shack historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Shake Stock Institutional Investors
| Shares | T. Rowe Price Investment Management,inc. | 2024-12-31 | 728.6 K | Van Berkom And Associates Inc | 2024-12-31 | 660.2 K | Goldman Sachs Group Inc | 2024-12-31 | 598.4 K | Wasatch Advisors Lp | 2024-12-31 | 566.4 K | Driehaus Capital Management Llc | 2024-12-31 | 511.2 K | Ubs Group Ag | 2024-12-31 | 502.1 K | Squarepoint Ops Llc | 2024-12-31 | 500.2 K | Nuveen Asset Management, Llc | 2024-12-31 | 487.5 K | Bnp Paribas Investment Partners Sa | 2024-12-31 | 462.4 K | Blackrock Inc | 2024-12-31 | 6.1 M | Vanguard Group Inc | 2024-12-31 | 4.4 M |
Shake Shack Cash Flow Accounts
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 (projected) | ||
| Change To Inventory | (667K) | (962K) | (334K) | (1.2M) | (610K) | (640.5K) | |
| Change In Cash | 109.8M | 155.5M | (71.9M) | (5.9M) | 96.1M | 100.9M | |
| Free Cash Flow | (31.7M) | (43.1M) | (65.8M) | (14.0M) | 35.7M | 37.4M | |
| Depreciation | 50.2M | 60.2M | 74.3M | 93.0M | 104.6M | 109.8M | |
| Other Non Cash Items | 57.0M | 54.0M | 62.6M | 70.0M | 40.9M | 42.9M | |
| Capital Expenditures | 69.0M | 101.5M | 142.6M | 146.2M | 135.5M | 84.0M | |
| Net Income | (45.5M) | (10.1M) | (26.0M) | 21.0M | 10.8M | 11.4M | |
| End Period Cash Flow | 146.9M | 302.4M | 230.5M | 224.7M | 320.7M | 336.7M | |
| Investments | (359K) | (43.4M) | (143.4M) | (174.5M) | (66.1M) | (69.4M) | |
| Net Borrowings | (286K) | (64K) | (169K) | (3.0M) | (2.7M) | (2.5M) | |
| Dividends Paid | 751K | 7.8M | 1.8M | 3.2M | 1.6M | 1.6M | |
| Change To Netincome | 2.2M | 16.3M | (43K) | 12.4M | 14.3M | 10.3M | |
| Change Receivables | 10.7M | 1.0M | (4.2M) | 9.1M | 10.5M | 11.0M |
Shake Shack Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Shake Shack or Hotels, Restaurants & Leisure sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Shake Shack's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Shake stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | -0.5 | |
β | Beta against Dow Jones | 1.35 | |
σ | Overall volatility | 3.42 | |
Ir | Information ratio | -0.16 |
Shake Shack Volatility Alert
Shake Shack exhibits very low volatility with skewness of 0.36 and kurtosis of 3.12. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Shake Shack's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Shake Shack's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Shake Shack Implied Volatility
Shake Shack's implied volatility exposes the market's sentiment of Shake Shack stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Shake Shack's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Shake Shack stock will not fluctuate a lot when Shake Shack's options are near their expiration.
Shake Shack Fundamentals Vs Peers
Comparing Shake Shack's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Shake Shack's direct or indirect competition across all of the common fundamentals between Shake Shack and the related equities. This way, we can detect undervalued stocks with similar characteristics as Shake Shack or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Shake Shack's fundamental indicators could also be used in its relative valuation, which is a method of valuing Shake Shack by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Shake Shack to competition |
| Fundamentals | Shake Shack | Peer Average |
| Return On Equity | 0.0225 | -0.31 |
| Return On Asset | 0.0134 | -0.14 |
| Profit Margin | 0.01 % | (1.27) % |
| Operating Margin | 0.04 % | (5.51) % |
| Current Valuation | 4 B | 16.62 B |
| Shares Outstanding | 40.08 M | 571.82 M |
| Shares Owned By Insiders | 5.17 % | 10.09 % |
| Shares Owned By Institutions | 94.83 % | 39.21 % |
| Number Of Shares Shorted | 4.18 M | 4.71 M |
| Price To Earning | 112.61 X | 28.72 X |
| Price To Book | 7.46 X | 9.51 X |
| Price To Sales | 2.97 X | 11.42 X |
| Revenue | 1.25 B | 9.43 B |
| Gross Profit | 480.85 M | 27.38 B |
| EBITDA | 120.89 M | 3.9 B |
| Net Income | 10.82 M | 570.98 M |
| Cash And Equivalents | 357.96 M | 2.7 B |
| Cash Per Share | 9.11 X | 5.01 X |
| Total Debt | 796.92 M | 5.32 B |
| Debt To Equity | 1.65 % | 48.70 % |
| Current Ratio | 2.89 X | 2.16 X |
| Book Value Per Share | 11.73 X | 1.93 K |
| Cash Flow From Operations | 171.16 M | 971.22 M |
| Short Ratio | 2.73 X | 4.00 X |
| Earnings Per Share | 0.24 X | 3.12 X |
| Price To Earnings To Growth | 2.55 X | 4.89 X |
| Target Price | 134.64 | |
| Number Of Employees | 12.83 K | 18.84 K |
| Beta | 1.9 | -0.15 |
| Market Capitalization | 3.72 B | 19.03 B |
| Total Asset | 1.7 B | 29.47 B |
| Retained Earnings | 26.98 M | 9.33 B |
| Working Capital | 180.9 M | 1.48 B |
Note: Acquisition by Robert Lynch of 18417 shares of Shake Shack subject to Rule 16b-3 [view details]
Shake Shack Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Shake . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Shake Shack Buy or Sell Advice
When is the right time to buy or sell Shake Shack? Buying financial instruments such as Shake Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Shake Shack Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For more information on how to buy Shake Stock please use our How to buy in Shake Stock guide.You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Hotels, Restaurants & Leisure space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Shake Shack. If investors know Shake will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Shake Shack listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.318 | Earnings Share 0.24 | Revenue Per Share | Quarterly Revenue Growth 0.148 | Return On Assets |
The market value of Shake Shack is measured differently than its book value, which is the value of Shake that is recorded on the company's balance sheet. Investors also form their own opinion of Shake Shack's value that differs from its market value or its book value, called intrinsic value, which is Shake Shack's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Shake Shack's market value can be influenced by many factors that don't directly affect Shake Shack's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Shake Shack's value and its price as these two are different measures arrived at by different means. Investors typically determine if Shake Shack is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Shake Shack's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.