Shake Shack (NYSE:SHAK) Stock Price Breaks Above 200-Day Moving Average – Should You Sell?

Shake Shack, Inc. (NYSE:SHAK)’s share price passed above its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $74.29 and traded as high as $78.65. Shake Shack shares last traded at $77.2670, with a volume of 1,750,606 shares traded.

Recent Shake Shack Headlines

Investors following SHAK have been watching these headlines:

• Positive Sentiment: Shake Shack reportedly opened a record 21 stores in three months, pointing to continued expansion. The article says the company follows a strict growth rule, though it does not provide financial results tied to the new locations. Article: Shake Shack Opened a Record 21 Stores in 3 Months
• Neutral Sentiment: The return of Shake Shack’s black truffle menu favorites, with a new addition, may support seasonal interest and sales, but the article gives no indication of expected financial impact. Article: Shake Shack’s black truffle favorites are back
• Neutral Sentiment: A planned Hamlin location would add to the company’s footprint, but there is no opening date yet, limiting the near-term significance. Article: Shake Shack Plots Hamlin Outpost

Analysts Set New Price Targets

SHAK has been the topic of several recent analyst reports. Zacks Research raised Shake Shack from a “strong sell” rating to a “hold” rating in a research report on Wednesday, August 5th. Mizuho decreased their price target on Shake Shack from $90.00 to $80.00 and set an “outperform” rating for the company in a research note on Friday, October 30th. JPMorgan Chase & Co. raised their price target on Shake Shack from $75.00 to $77.00 and gave the stock a “neutral” rating in a report on Tuesday. Royal Bank Of Canada assumed coverage on Shake Shack in a research note on Tuesday, September 8th. They set an “outperform” rating and a $89.00 price target on the stock. Finally, Guggenheim restated a “buy” rating and set a $90.00 price target on shares of Shake Shack in a research note on Thursday, October 15th. Sixteen research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to data from MarketBeat, Shake Shack presently has a consensus rating of “Moderate Buy” and a consensus price target of $87.09.

Shake Shack Trading Down 0.9%

The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.69 and a current ratio of 1.72. The company has a market cap of $3.22 billion, a price-to-earnings ratio of 72.99, a P/E/G ratio of 6.86 and a beta of 1.75. The company’s fifty day moving average is $65.48 and its two-hundred day moving average is $74.13.

Shake Shack (NYSE:SHAK) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.40 EPS for the quarter, beating the consensus estimate of $0.34 by $0.06. The business had revenue of $423.27 million during the quarter, compared to analysts’ expectations of $426.41 million. Shake Shack had a net margin of 2.72% and a return on equity of 9.38%. The business’s quarterly revenue was up 15.2% compared to the same quarter last year. During the same period in the previous year, the business posted $0.36 EPS. On average, research analysts anticipate that Shake Shack, Inc. will post 1.17 EPS for the current year.

Hedge Funds Weigh In On Shake Shack

A number of institutional investors have recently modified their holdings of the stock. Bank of America Corp DE lifted its holdings in shares of Shake Shack by 9.3% in the 1st quarter. Bank of America Corp DE now owns 899,013 shares of the company’s stock valued at $79,536,000 after buying an additional 76,724 shares during the period. Dimensional Fund Advisors LP grew its holdings in Shake Shack by 2.5% during the first quarter. Dimensional Fund Advisors LP now owns 670,111 shares of the company’s stock worth $59,276,000 after acquiring an additional 16,439 shares during the period. Fisher Asset Management LLC grew its holdings in Shake Shack by 1.8% during the third quarter. Fisher Asset Management LLC now owns 636,738 shares of the company’s stock worth $37,364,000 after acquiring an additional 11,474 shares during the period. Cannell & Spears LLC grew its holdings in Shake Shack by 27.4% during the first quarter. Cannell & Spears LLC now owns 452,694 shares of the company’s stock worth $40,022,000 after acquiring an additional 97,446 shares during the period. Finally, Assenagon Asset Management S.A. grew its holdings in Shake Shack by 48.7% during the third quarter. Assenagon Asset Management S.A. now owns 323,692 shares of the company’s stock worth $18,994,000 after acquiring an additional 106,075 shares during the period. Hedge funds and other institutional investors own 86.07% of the company’s stock.

Shake Shack Company Profile

Shake Shack operates a fast-casual restaurant business focused on burgers, chicken, hot dogs, crinkle-cut fries, shakes and frozen custard. Some locations also serve beer and wine. The company serves customers through restaurants and digital ordering, including delivery. The business grew from a hot dog cart opened in New York City’s Madison Square Park in 2001. Shake Shack opened its first permanent kiosk in the park in 2004 and has since expanded its restaurant operations. Shake Shack serves customers in the United States and internationally.