Shake Shack (NYSE:SHAK) Stock Breaks Above Fifty Day Moving Average – Time to Sell?

Shake Shack, Inc. (NYSE:SHAK) passed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $65.41 and traded as high as $67.96. Shake Shack shares last traded at $67.04, with a volume of 1,077,906 shares changing hands.

Analysts Set New Price Targets

A number of research analysts recently issued reports on SHAK shares. Wells Fargo & Company raised their price target on Shake Shack from $65.00 to $70.00 and gave the stock an “equal weight” rating in a research note on Wednesday, October 21st. Morgan Stanley boosted their price objective on Shake Shack from $74.00 to $79.00 and gave the company an “equal weight” rating in a research note on Thursday, October 15th. Piper Sandler decreased their price objective on Shake Shack from $79.00 to $66.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. Robert W. Baird upgraded shares of Shake Shack to a “hold” rating in a research report on Monday, August 24th. Finally, BNP Paribas Exane lifted their target price on shares of Shake Shack from $77.00 to $81.00 and gave the company an “outperform” rating in a report on Thursday, August 6th. Sixteen research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Shake Shack has a consensus rating of “Moderate Buy” and a consensus price target of $87.43.

Shake Shack Stock Up 3.9%

The firm has a market cap of $2.87 billion, a price-to-earnings ratio of 71.32, a P/E/G ratio of 7.11 and a beta of 1.68. The firm’s 50 day moving average price is $65.41 and its two-hundred day moving average price is $75.32. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.67 and a quick ratio of 1.64.

Shake Shack (NYSE:SHAK) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.31 by $0.12. The firm had revenue of $417.62 million for the quarter, compared to analyst estimates of $417.18 million. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%. The business’s revenue was up 17.2% on a year-over-year basis. During the same quarter last year, the company posted $0.44 earnings per share. As a group, sell-side analysts forecast that Shake Shack, Inc. will post 1.13 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SHAK. Assenagon Asset Management S.A. raised 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 purchasing an additional 106,075 shares during the last quarter. Sei Investments Co. boosted its position in Shake Shack by 187.7% during the first quarter. Sei Investments Co. now owns 41,683 shares of the company’s stock worth $3,688,000 after purchasing an additional 27,194 shares in the last quarter. Raiffeisen Bank International AG acquired a new stake in Shake Shack in the second quarter valued at $1,644,000. Fund 1 Investments LLC acquired a new stake in Shake Shack in the second quarter valued at $840,000. Finally, Bank of America Corp DE grew its holdings in Shake Shack by 9.3% in the first quarter. Bank of America Corp DE now owns 899,013 shares of the company’s stock valued at $79,536,000 after purchasing an additional 76,724 shares during the last quarter. 86.07% of the stock is owned by hedge funds and other institutional investors.

Shake Shack Company Profile

Shake Shack Inc operates a fast-casual restaurant chain known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, milkshakes and beverages. Its menu also includes vegetarian and other specialty items, with offerings varying by location. The company emphasizes hospitality, quality ingredients and restaurant designs intended to support both dine-in and takeout service.

The business began as a temporary hot dog cart in Madison Square Park in New York City in 2001 and opened its first permanent restaurant there in 2004.