Loop Capital upgraded SHAK to "buy" from "hold"
Shake Shack Inc (NYSE:SHAK) stock is up 2% to trade at $89.89 at last check, after an upgrade at Loop Capital to "buy" from "hold." The analyst in coverage set is price target at $127, implying a 40% upside after highlighting the fast food company's attractive valuation and sales growth.
Coming into today, the majority of firms leaned bearish on SHAK, with 12 of the 20 in question calling it a "hold" or worse. Shorts are firmly in control, too. Short interest rose 7% over the past month, and makes up 10.7% of Shake Shack stock's available float. An unwinding of this pessimism could bolster the shares even higher.
SHAK is down more than 30% so far this year, but could today mark its first daily gain in three sessions. The equity is once again testing a ceiling at the 20-day moving average, after slipping back below the trendline following a bounce off its lowest level since July.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), the stock's 50-day call/put volume ratio of 1.49 ranks in the 82nd percentile of annual readings. This suggests options traders have been much more bullish than usual.