Shake Shack shares are on an absolute tear

Don’t look now, but Shake Shack shares have been on a massive tear.

In the last month, the stock is up about 44%, gaining another 3% on Monday after a 9% rally into the weekend last week.

Here’s the crazy chart.

On Monday, the stock was up another 3% to north of $US70 per share, a new all-time high. Shake Shack made its public debut in January and its IPO priced shares at $US21 a piece.

There hasn’t been much news surrounding the company recently, but since the company’s first report since going public, the stock has been on a huge rally higher. It is worth noting, however, that about 30% of the outstanding shares are being sold short, meaning investors are betting the price will go down, leading people on social media to throw around the “short squeeze” phrase to explain the move higher.

On March 11, Shake Shack reported earnings that were better than expected, but the stock briefly plunged following these numbers before rebounding.

Since then the stock was mixed before ripping higher in recent weeks.

In the first quarter, the company reported revenue rose 51% to $US34.8 million and reported a net loss of $US0.05 per share, or $US1.43 million.

Following that report, Wall Street analysts more or less maintained their neutral stance on the burger chain.

More recently, however, the stock was downgraded by analysts at Stifel, who cited the company’s lofty valuation. The firm said in its downgrade — from “Buy” to “Hold” — didn’t change its long-term bullish outlook for the company.

In its note, Stifel wrote that: “[W]e remain confident in our unchanged bullish view on the two fundamental parts of the SHAK story within our Stifel Investment Framework, including: (1) The SHAK Company Story: as a top “how company” within today’s “how economy”; and (2) The SHAK Concept Story: as the industry’s best “fine-casual” positioning.”

The firm has a $US55 price target on shares.

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