EARN25

Shake Shack to Return $10 Million Small Business Loan After Backlash

Shake Shack is the first major firm to return a coronavirus-related loan

Deputy Editor
Apr 20, 2020 at 10:37 AM
facebook X logo linkedin


After drawing sharp criticism for tapping into the U.S. government's small business loan program, Shake Shack (NYSE:SHAK) announced it is returning its entire $10 million loan. The company is the first major firm to give back coronavirus-related bailout money. SHAK stock is down 3.5% in response, last seen trading at $41.93.

On the charts, SHAK is feeling pressure at its 40-day moving average -- a trendline the security hasn't closed north of since its late-February bear gap. For the year, Shake Shack is off 27.5%. 

Meanwhile, analysts are on the fence with the security. Of the 16 in coverage, 12 rate the equity a “hold," while two say "strong sell." Additionally, the consensus 12-month price target of $44 is in line with current levels. 

Despite this Shake Shack is popular among options bulls today. So far, 4,507 calls have crossed the tape -- five times what's typically seen at this point -- compared to just 899 puts. The two most popular contracts are the 4/24 50- and 45-strike calls with positions being opened at both. 

 

You Don’t Need 25 Alerts -- You Need ONE You Can Trust!

That’s the idea behind Trade of the Week, Schaeffer’s newest trade alert.

Every Monday morning before the opening bell, you’ll receive a single, expertly researched trade recommendation -- built from the same proprietary research we’ve been using for over four decades.

It’s not just a signal.

It’s a plan designed for traders who are tired of jumping from alert to alert without ever finding their edge.

No juggling alerts. No switching directions mid-week. Just one clear, expertly researched trade idea -- delivered before the market even opens.

👉 JOIN RIGHT NOW FOR JUST $1 TO GET THE NEXT TRADE!