Shake Shack (NYSE:SHAK) Stock Crosses Below 50 Day Moving Average – Time to Sell?

Shares of Shake Shack, Inc. (NYSE:SHAK) crossed below its 50 day moving average during trading on Tuesday. The stock has a 50 day moving average of $65.76 and traded as low as $57.75. Shake Shack shares last traded at $58.1530, with a volume of 1,230,574 shares.

Analysts Set New Price Targets

A number of research analysts recently commented on SHAK shares. DA Davidson upped their price target on shares of Shake Shack from $70.00 to $85.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Citigroup reiterated a “buy” rating on shares of Shake Shack in a research note on Wednesday, June 3rd. Piper Sandler dropped their price target on Shake Shack from $79.00 to $66.00 and set a “neutral” rating for the company in a report on Tuesday, July 14th. Morgan Stanley set a $74.00 price objective on Shake Shack in a report on Thursday, August 6th. Finally, Weiss Ratings upgraded Shake Shack from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, September 9th. Sixteen investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $89.71.

Shake Shack Stock Down 1.7%

The stock has a market capitalization of $2.46 billion, a price-to-earnings ratio of 61.17, a price-to-earnings-growth ratio of 6.40 and a beta of 1.66. The company has a quick ratio of 1.64, a current ratio of 1.67 and a debt-to-equity ratio of 0.43. The stock has a 50 day moving average price of $65.70 and a 200 day moving average price of $71.64.

Shake Shack (NYSE:SHAK) last posted its earnings results on Wednesday, August 5th. The company reported $0.43 EPS for the quarter, topping the consensus estimate of $0.31 by $0.12. Shake Shack had a net margin of 2.56% and a return on equity of 9.29%. The business had revenue of $417.62 million for the quarter, compared to the consensus estimate of $417.18 million. During the same period last year, the company earned $0.44 EPS. The firm’s revenue was up 17.2% compared to the same quarter last year. As a group, analysts forecast that Shake Shack, Inc. will post 1.12 EPS for the current year.

Institutional Investors Weigh In On Shake Shack

A number of institutional investors have recently made changes to their positions in SHAK. Intech Investment Management LLC boosted its stake in shares of Shake Shack by 40.1% in the 4th quarter. Intech Investment Management LLC now owns 77,916 shares of the company’s stock valued at $6,324,000 after purchasing an additional 22,287 shares during the last quarter. Jefferies Financial Group Inc. bought a new position in Shake Shack during the fourth quarter worth $2,898,000. Sei Investments Co. lifted its holdings in Shake Shack by 187.7% in the first quarter. Sei Investments Co. now owns 41,683 shares of the company’s stock valued at $3,688,000 after buying an additional 27,194 shares during the period. Fund 1 Investments LLC acquired a new position in Shake Shack in the second quarter valued at $840,000. Finally, Wasatch Advisors LP lifted its holdings in Shake Shack by 16.5% in the first quarter. Wasatch Advisors LP now owns 407,283 shares of the company’s stock valued at $36,032,000 after buying an additional 57,612 shares during the period. Institutional investors own 86.07% of the company’s stock.

About Shake Shack

Shake Shack Inc (NYSE: SHAK) operates a global chain of fast-casual restaurants known for made-to-order burgers, chicken sandwiches, hot dogs, crinkle-cut fries, frozen custard, shakes, and other beverages. Its menu also includes beer and wine at select locations, with an emphasis on premium ingredients and hospitality-focused service.

The company traces its origins to a hot dog cart opened in New York City’s Madison Square Park in 2001 as part of a park revitalization project. The first permanent Shake Shack restaurant opened in the park in 2004.