SHAK Stock Price Prediction 2024, 2025, 2026, 2027-2030: Is SHAK a good buy?
Get the latest Shake Shack stock price prediction from 2024 to 2030. Read up other information about SHAK that you may find useful for you investment decision.
Is SHAK a publicly traded stock?
Shake Shack Inc went public on January 20, 2015 on the NYSE under the ticker symbol ‘SHAK’.
Shake Shack Inc priced its ipo at $21per share, offering 5,750,000 shares of Class A common stock and raked in approximately $112.3 million.
However, on January 30, 2015 Shake Shack started trading on the NYSE at $47 per share. In April and May of the same year, SHAK price per share hit $72 and $90 respectively.
Shake Shack Inc is an American based coordinated, well-run, casual fast eatery joints, positioned in several public locations for delicious burgers, hot dogs, frozen custard, simple and high quality meals.
The firm was established by Daniel Meyer in 2001 with headquarters in New York City, United States.
Summary of Current SHAK Stock Metrics
No doubt, Shake Shack stock faces difficulty with the short term metric valuation estimates. There are a few positive signals.
With the return on equity (ROE) of 6%, a return on equity ratio of 15% to 20% is usually considered good, so at 6% the ratio is considered very low.
This implies that the Company is not using the shareholders capital invested efficiently. This is sign of poor management or misallocation of resources.
With the price-to-sales (p/s) ratio of 3.9%, the company is generating less revenue for every dollar invested in the stock. This is a red flag that the company is high-risk.
With 18% revenue growth rate over the past 12 months, the company is doing very well in terms of revenue generation. Shake Shack is growing revenue by 18% per annum which falls within a comfortable range of 10-20 percentage of solid performance.
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Debt to Equity is low at 0.53 for the company, which implies that it is managing its resources and borrowing less money. In other words, the company has low liabilities in relation to its equity. This simply signaled successful business.
Is SHAK currently undervalued or overvalued?
We hold the view that Shake Shack is currently overvalued based on current metric analysis, which is often attributed to poor management decisions. Restaurants & Bars industry average PE is 21.9. Shake Shack Inc PE ratio is 146.67.
Since the Company’s PE ratio is greater than the industry’s average (146.67>21.9), SHAK is currently overvalued.
Shake Shack has a PEG ratio of 3.35. The rule is that a PEG ratio greater than 1.0 is considered high, implying that the stock is overvalued.
Analysts further estimated the intrinsic value of SHAK at $52.60. Since the current market price is $104.69, the stock is overvalued by 99.03%.
Will SHAK go up?
In practice, strong earnings usually result in the stock price going up. Since Shake Shack records 18% revenue with 0.5 debt-to-equity, there is high probability that SHAK will go up.
The 14 analysts with 12-month price forecasts for Shake Shack stock have an average target of 109.50, with low estimate of 73 and a high estimate of 146. The average target predicts an increase of 4.60% from the current stock price of 104.69.
Wall Street targets 10% upside for SHAK. Based on 16 Wall Street analysts offering 12 month price targets for Shake Shack in the last 3 months, the average price target is $109.53 with a high forecast of $125.00 and a low forecast of $92.00. The average price target represents a 4.62% change from the last price of $104.69.
SHAK Stock Price Prediction 2024, 2025, 2026, 2027, 2028, 2029, 2030
The price of SHAK today is $104.69. Moneystics Stock predictions algorithm uses machine learning and in-depth learning technologies for Shake Shack stock.
Our model uses historical SHAK price data, volume, financial statements, market sentiment and broader economic conditions. Shake Shack stock volatility rate is estimated at 4.9% with 1.04 beta coefficient.
Year | Average Price $ | Opening Price $ | High $ | Low $ | Closing Price $ | Total % Change |
2024 | 100.01 | 73.15 | 127.49 | 64.16 | 126.94 | 73.53% |
2025 | 133.83 | 127.05 | 140.75 | 102.29 | 140.61 | 10.67% |
2026 | 139.74 | 140.68 | 140.98 | 98.12 | 138.79 | -1.34% |
2027 | 143.16 | 140.24 | 146.23 | 100.03 | 146.08 | 4.16% |
2028 | 150.02 | 147.43 | 152.80 | 118.37 | 152.60 | 3.51% |
2029 | 155.08 | 153.87 | 156.78 | 120.05 | 156.29 | 1.57% |
2030 | 160.50 | 157.59 | 163.89 | 123.19 | 163.37 | 3.67% |
Should you invest $2000 in SHAK today, where will you be in 2030?
From the table above, the average price of SHAK stock in 2030 is $160.50 per share.
This implication is in 2030 the SHAK will hit $160 per share as against the current price of $104.69. The predicted price is 53% up from the current stock price.
Therefore, your $2000 today gives you power to buy 19.10 units of Shake Shack shares. Holding same till 2030 will give you 160 x 19.10 = $3,056. That means in 2030 your SHAK stock will appreciate by $1000.
Is SHAK stock a good buy?
Since Shake Shack has good revenue and earnings outlook with less liability it may be considered a good buy for risk tolerant investors even in the face of technically high PE ratio.
Out of 17 analysts, 8(47.06%) are recommending SHAK as a Strong Buy, 5(29.41%) are recommending SHAK as a Buy, 3 (17.65%) are recommending SHAK as a Hold, 1(5.88%) are recommending SHAK as Sell, and 0 (0.00%) are recommending SHAK as a Strong Sell.
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SHAK has a consensus rating of Buy which is based on 9 buy ratings, 3 hold ratings and 1 sell ratings from 13 Wall Street Analysts offering 12 months Shake Shack rating.
How you can buy Shake Shack Shares: a 5-step approach
Like other stocks, SHAK shares are traded on stock exchanges. If you want to buy SHAK stock, here are the steps you need to follow:-
Step 1: Open a Brokerage Account
There are many brokerage firms you will have to choose from. This is called a trading account which you need to open with a brokerage that transacts in SHAK stock.
To do this requires your completion of online application form with your details such as your ID and address and then fund the account.
Step 2: Make Your Research on Shake Shack Inc. Stock
After deciding where to buy SHAK stocks, the next stage is to conduct research on the company. You need to know something about the company’s products, revenue, profitability, and other key fundamentals.
Step 3: Determine How Much You Want to Invest
You now think of how much you are ready to put into buying SHAK stock. This is done after assessing the risk associated with the stock and the extent you can manage the risk.
Step 4: Place an Order for SHAK Stock
Once you have resolved the volume of shares and how much you want to invest in SHAK stock, you can place your order to buy the stock.
Placing an order for SHAK requires a selection of your preferred number/volume of stock with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
Step 5: Track Your Investment Regularly
When investing in the stock market, it’s important to monitor your investments constantly and set a no-loss target on your portfolio.
Tracking your investments involves following up with key information about your stock performance. This helps you to make strategic decisions about pricing, gains, and loss.