Shake Shack Inc. [NYSE:SHAK] price is worthing noting Thursday. The current price is $70.89 with a high of $71.09 and $66.70. Analysts see the the current price target is $57.20.
To ground this price against the rest of the market, over the last two 52 weeks, the company is trading -24.00%, while the S&P 500 is trading 0.79%. Traders should note that the company’s next earning date is 11/04/2020. The company has price per sales of 4.84.
The Price is right
Holding a Market Cap of $2.63 billion, Shake Shack Inc. has seen a trading range over the last year of $30.01-$94.25.
For the last five days, SHAK is up from its last closing price. The average shares trading hands each day is 1.28M.
Using a Force Index Indicator is a good way to look at how strong actual buying and selling pressure is for SHAK. When we apply the Elder Force Index to Shake Shack Inc., we are seeing an Elder Force Indicator number of 5098449.42.
The recent performance of the stock is another area that can tell traders how to proceed. SHAK is presenting an interesting case. This can be seen in the Forward P/E ratio, which currently stands at 668.77.
In the last quarter, SHAK made a profit of 4.2 million. Shake Shack Inc. also saw quarter revenue growth year over year of 29.44%.
Looking at popular technical indicators, the company’s 5-day moving average is 67.13 compared to the 50-day moving average of 18.50%. So, we are clearly seeing an upward trajectory here.
The Relative Strength Index or RSI is an indicator ranging between 0 and 100 that traders use to determine if a stock is “overbought” or “oversold.” A strong uptrend tending to reach into the “overbought” status is above 70, while a downward trend will stay around the 30 mark. SHAK currently holds a 9-day RSI of 67.04%, while 100-day RSI stands at 53.72%.
Another indicator we believe is worth keeping tabs on is the Moving Average Convergence Divergence or MACD. Similar to the concept of the Force Index — on the basis of price momentum — the MACD gives traders a tool to measure the turning point of a stock even during rapid fluctuations in price. Buy and sell signals are determined by a stock’s relation to the zero line, so if a stock is above a zero line for many weeks it might be a “buy.” On the other hand, if a stock is below the zero line consistently, it might be one to stay away from. Also, if the MACD line reaches a peak and dips, its momentum may be waning. SHAK’s 9-day MACD is 1.28 and the company’s 100-day MACD stands at 10.24.
Another area that is important to analyze is insider moves and majority shareholders. While this is not always an error-free way to tell what the future holds for a stock, you can maybe gather important information from reading the tea leaves about who is buying and selling.
The major holders for this stock are 9.54% by insiders and 80.61% by institutions. Regarding institutional holdings, Blackrock Inc. owns 13.46%, while the second top holder, Vanguard Group, Inc. (The), currently owns 9.79%.
Over the last six months, insiders have sold 5,026 with the most recent transaction from Meyer Daniel Harris, Director, with a sell at price 65.21 per share.
Overall, the recommended rating for SHAK is Moderate Buy. Currently, the company has 20 analysts watching the stock, and the average quarterly earnings estimate is -0.2. Quarterly revenue estimates are averaging 125.6M with the high estimate reaching 140M and the low at 112.5M.
To review, the current 1-year target estimate is sitting at 56.08, while the current price 70.89. Based on this, we expect some pullback on the stock over time given our above analysis.