Shake Shack Inc. (NYSE:SHAK) has a beta of 1.74. The stock’s Relative Strength Index (RSI) is 55.63, with weekly volatility at 5.51% and ATR at 5.32. The SHAK stock’s 52-week price range has touched low of $47.12 and a $138.38 high. Its shares traded lower over the last trading session, losing -1.53% on 06/09/21. The shares fell to a low of $98.88 before closing at $99.11. Intraday shares traded counted 0.98 million, which was -8.84% lower than its 30-day average trading volume of 901.63K. SHAK’s previous close was $100.65 while the outstanding shares total 38.95M.
Investors have identified the Restaurants company Shake Shack Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $4.23 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Shake Shack Inc. (SHAK) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 435.29 million total, with 118.75 million as their total liabilities.
SHAK were able to record -13.2 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by 228.13 million. In cash movements, the company had a total of 9.95 million as operating cash flow.
Potential earnings growth for Shake Shack Inc. (SHAK)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Shake Shack Inc. recorded a total of 155.28 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 7.8% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -1.43%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 128.07 million trying to sell their products during the last quarter, with the result yielding a gross income of 27.21 million. This allows shareholders to hold on to 38.95M with the recently reported earning now reading 0.01 cents per share. This is a figure that compared to analystâ€™s prediction for their 08/05/2021 (0.04 cents a share).
Having a look at the companyâ€™s valuation, the company is expected to record 0.46 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on SHAK sounds very interesting.
Is the stock of SHAK attractive?
In related news, Director, Lyons Jenna sold 1,548 shares of the companyâ€™s stock in a transaction that recorded on Apr 16. The sale was performed at an average price of 118.78, for a total value of 183,871. As the sale deal closes, the Director, Meyer Daniel Harris now sold 110,000 shares of the companyâ€™s stock, valued at 12,818,366. Also, Chief Executive Officer, GARUTTI RANDALL J sold 140,000 shares of the companyâ€™s stock in a deal that was recorded on Feb 16. The shares were price at an average price of 123.30 per share, with a total market value of 17,262,363. Following this completion of acquisition, the Director, Meyer Daniel Harris now holds 110,000 shares of the companyâ€™s stock, valued at 12,292,935. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.40%.
5 out of 21 analysts covering the stock have rated it a Buy, while 13 have maintained a Hold recommendation on Shake Shack Inc.. 2 analysts has assigned a Sell rating on the SHAK stock. The 12-month mean consensus price target for the companyâ€™s shares has been set at $103.64.