Shake Shack Inc (NYSE: SHAK)
Shake Shack was off to what seemed to be a relatively normal day in the market today. When the opening bell rang, the stock started heading up, hit some volatility, and started heading down. While it stayed in the green for most of the morning, the gains were nothing to write home about. That is, until minutes ago, when the stock started screaming toward the top. Below, we’ll talk about what we’re seeing, why, and what we’ll be watching for with regard to SHAK ahead.
What We’re Seeing From SHAK
As mentioned above, Shake Shack was off to a relatively normal day in the market today. As soon as the opening bell rang, the stock started working its way upward before reaching resistance and finding its way back down. Nonetheless, minutes ago, the stock started to make a mad dash toward the top. At the moment (10:45), SHAK is trading at $38.80 per share after a gain of $0.64 per share (1.68%) thus far today.
Why The Stock Is Climbing
As always, as soon as our partners at Trade Ideas notified us of the gains on SHAK, the CNA Finance team started digging to see exactly what was causing the movement. In our search, we were unable to find any fundamental news that would lead to such gains. However, we were able to find something interesting in the social space.
At the moment, social media is lighting up with chatter about Shake Shack. The big rumor is that the company is likely to be taken over soon. The buyer in the rumor is said to be McDonalds (MCD). At the moment, there is no information as to what the price may be, nor confirmation from either side. Nonetheless, the rumor is sending the stock through the roof!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on SHAK. In particular, we’ll be watching to see if there is any validity to the rumor. After all, if MCD does take the company over, it will likely lead to an incredible return of value for investors. We’ll be watching the story closely and bringing you the news as it breaks!
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[Image Courtesy of Wikimedia]