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

Shake Shack, Inc. (NYSE:SHAK)’s share price passed above its 50-day moving average during trading on Wednesday. The stock has a 50-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 traded.

Analysts Set New Price Targets

Several research firms have weighed in on SHAK. JPMorgan Chase & Co. dropped their target price on shares of Shake Shack from $77.00 to $75.00 and set a “neutral” rating for the company in a report on Tuesday, September 29th. TD Cowen restated a “hold” rating on shares of Shake Shack in a research report on Wednesday, August 5th. Weiss Ratings raised shares of Shake Shack from a “sell (d+)” rating to a “hold (c-)” rating in a report on Wednesday, September 9th. UBS Group upped their price target on shares of Shake Shack from $68.00 to $73.00 and gave the company a “neutral” rating in a report on Thursday, October 22nd. Finally, Robert W. Baird upgraded shares of Shake Shack to a “hold” rating in a research report on Monday, August 24th. Sixteen equities research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company. According to data from MarketBeat.com, Shake Shack currently has an average rating of “Moderate Buy” and an average target price of $87.43.

Shake Shack Price Performance

The stock has a market capitalization of $2.87 billion, a PE ratio of 71.32, a PEG ratio of 7.11 and a beta of 1.68. The company has a current ratio of 1.67, a quick ratio of 1.64 and a debt-to-equity ratio of 0.43. The company’s 50 day simple moving average is $65.41 and its 200 day simple moving average is $75.32.

Shake Shack (NYSE:SHAK) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.31 by $0.12. Shake Shack had a return on equity of 9.29% and a net margin of 2.56%. The company had revenue of $417.62 million during the quarter, compared to the consensus estimate of $417.18 million. During the same period in the previous year, the firm posted $0.44 EPS. Shake Shack’s revenue was up 17.2% on a year-over-year basis. On average, equities analysts anticipate that Shake Shack, Inc. will post 1.13 earnings per share for the current year.

Hedge Funds Weigh In On Shake Shack

Several hedge funds and other institutional investors have recently modified their holdings of the company. Assenagon Asset Management S.A. grew its holdings in shares of Shake Shack by 48.7% during the 3rd 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 period. Sei Investments Co. increased its position in Shake Shack by 187.7% during the 1st 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 purchased a new position in Shake Shack in the second quarter valued at approximately $1,644,000. Fund 1 Investments LLC purchased a new position in Shake Shack in the second quarter valued at approximately $840,000. Finally, Bank of America Corp DE raised 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 buying an additional 76,724 shares during the period. 86.07% of the stock is owned by institutional investors and hedge funds.

About Shake Shack

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.