Shake Shack (SHAK, $54.36) cleared of poisoning accusation

Shake Shack  has been exonerated of milkshake poisoning claims.

On Monday, after three NYPD officers alleged that "a toxic substance, believed to be bleach" had been used to spike the milkshakes they ordered from the fast casual restaurant chain .

Shake Shack was cleared of the wrongdoing by NYPD Chief of Detectives Rodney Harrison less than 24 hours after the claims were first brought upon the restaurant  chain. 

After being exonerated, Shake Shack tweeted they are"working hard" to understand what happened.

SHAK in Downtrend: RSI indicator exits overbought zone

SHAK's price could be shifting from an uptrend to a downtrend. Traders may consider selling the ticker or exploring put options. In 23 of 34 cases where SHAK's RSI Indicator exited the overbought zone, the price fell further within the following month. The odds of a continued Downtrend are 68%.

Current price $54.36 crossed the support line at $55.14 and is trading between $55.14 support and $51.71 resistance lines. Throughout the month of 05/13/20 - 06/15/20, the price experienced a +17% Uptrend, while the week of 06/08/20 - 06/15/20 shows a -12% Downtrend.

Technical Analysis (Indicators)

Bearish Trend Analysis

The Moving Average Convergence Divergence (MACD) crossed below the signal line. In 29 of 46 cases where SHAK's MACD histogram became negative, the price fell further within the following month. The odds of a continued Downtrend are 63%.

The higher Bollinger Band was broken -- a price fall is expected as the ticker heads toward the middle band, which invites the trader to consider selling or shorting the ticker, or exploring put options. In 30 of 50 cases where SHAK's price broke its higher Bollinger Band, its price dropped further during the following month. The odds of a continued Downtrend are 60%.

Bullish Trend Analysis

The Stochastic Indicator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.

The Momentum Indicator exceeded the 0 level on June 15, 2020. Traders may consider buying the ticker or exploring call options. In 67 of 86 cases where the ticker's Momentum Indicator exceeded 0, its price rose further within the subsequent month. The odds of a continued Uptrend are 78%.

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SHAK advanced for three days, in 250 of 329 cases, the price rose further within the following month. The odds of a continued Uptrend are 76%.

The Aroon Indicator entered an Uptrend today. In 221 of 269 similar cases where SHAK Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 82%.

Fundamental Analysis (Ratings)

Tickeron has a negative outlook on this ticker and predicts a further decline by more than 4.00% within the next month with a likelihood of 64%. During the last month, the daily ratio of advancing to declining volumes was 1.53 to 1.

The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SHAK’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock worse than average.

The Tickeron Valuation Rating of 95 (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: P/B Ratio (6.41) is normal, around the industry mean (2.81). P/E Ratio (108.20) is within average values for comparable stocks, (114.71). Projected Growth (PEG Ratio) (11.41) is also within normal values, averaging (5.27). Dividend Yield (0.00) settles around the average of (1.31) among similar stocks. P/S Ratio (2.47) is also within normal values, averaging (1.45).

The Tickeron SMR rating for this company is 90 (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 PE Growth Rating for this company is 77 (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.

The Tickeron Price Growth Rating for this company is 45 (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.