Shake Shack(SHAK, $45.99) to return $10 million loan to government
Shake Shack said it would return a small business loan it received from the U.S. government as part of covid-19 relief package.
The fast casual restaurant chain was able to get extra funding late last week through an equity transaction, and decided to immediately return the $10 million paycheck protection loan it received through the CARES Act, (the Associated Press reported).
CEO Randy Garutti and founder Danny Meyer said, “Shake Shack was fortunate last Friday to be able to access the additional capital we needed to ensure our long term stability through an equity transaction in the public markets”. They added, “We’re thankful for that and we’ve decided to immediately return the entire $10 million PPP loan we received last week so that those restaurants who need it most can get it now”.
SHAK in downward trend: 10-day moving average moved below 50-day moving average on April 18, 2024
The 10-day moving average for SHAK crossed bearishly below the 50-day moving average on April 18, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 14 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for SHAK moved out of overbought territory on March 25, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SHAK declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
SHAK broke above its upper Bollinger Band on March 20, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for SHAK entered a downward trend on April 25, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 23, 2024. You may want to consider a long position or call options on SHAK as a result. In of 91 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for SHAK just turned positive on April 25, 2024. Looking at past instances where SHAK's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
SHAK moved above its 50-day moving average on April 25, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHAK advanced for three days, in of 322 cases, the price rose further within the following month. The odds of a continued upward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. SHAK’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 83, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: SHAK's P/B Ratio (9.025) is slightly higher than the industry average of (4.103). SHAK has a moderately high P/E Ratio (211.208) as compared to the industry average of (55.594). SHAK's Projected Growth (PEG Ratio) (0.000) is slightly lower than the industry average of (2.024). SHAK has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.035). P/S Ratio (4.092) is also within normal values, averaging (3.312).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
an operator of limited-service hamburger restaurants
Industry Restaurants