Chipotle Mexican Grill (NYSE:CMG) Stock Price Target Cut by Raymond James Financial

Chipotle Mexican Grill (NYSE:CMG) had its target price cut by equities researchers at Raymond James Financial from $42.50 to $37.00 in a report released on Friday, Benzinga reports. The firm presently has an “outperform” rating on the restaurant operator’s stock. Raymond James Financial’s price objective points to a potential upside of 23.80% from the stock’s current price.

Several other equities analysts have also weighed in on the stock. JPMorgan Chase & Co. reduced their target price on shares of Chipotle Mexican Grill from $40.00 to $37.00 and set an “overweight” rating on the stock in a report on Tuesday, September 29th. Bank of America reissued a “buy” rating and issued a $53.00 price objective (up from $50.00) on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. Robert W. Baird reissued a “neutral” rating and issued a $40.00 price objective (down from $44.00) on shares of Chipotle Mexican Grill in a research report on Monday, August 24th. DA Davidson boosted their price objective on Chipotle Mexican Grill from $45.00 to $50.00 and gave the stock a “buy” rating in a research note on Thursday, July 30th. Finally, Piper Sandler decreased their target price on Chipotle Mexican Grill from $42.00 to $39.00 and set an “overweight” rating for the company in a research report on Thursday, July 30th. Twenty-two equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $43.67.

Chipotle Mexican Grill Trading Down 2.3%

Shares of Chipotle Mexican Grill stock traded down $0.69 during trading hours on Friday, reaching $29.89. The stock had a trading volume of 7,369,046 shares, compared to its average volume of 17,686,797. Chipotle Mexican Grill has a 1 year low of $28.03 and a 1 year high of $42.74. The firm has a 50 day simple moving average of $34.03 and a two-hundred day simple moving average of $33.49. The firm has a market capitalization of $37.82 billion, a price-to-earnings ratio of 27.48, a P/E/G ratio of 1.87 and a beta of 0.96.

Chipotle Mexican Grill (NYSE:CMG) last announced its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.32 by $0.01. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The firm had revenue of $3.35 billion for the quarter, compared to analysts’ expectations of $3.33 billion. During the same period in the previous year, the company posted $0.33 earnings per share. Chipotle Mexican Grill’s revenue was up 9.3% compared to the same quarter last year. Sell-side analysts forecast that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insiders Place Their Bets

In other news, insider Matthew R. Bush sold 2,675 shares of the firm’s stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the completion of the sale, the insider directly owned 21,415 shares in the company, valued at $765,586.25. This trade represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. BlackRock Inc. purchased a new position in Chipotle Mexican Grill in the second quarter valued at about $4,417,475,000. Bank of America Corp DE purchased a new stake in Chipotle Mexican Grill during the 2nd quarter worth approximately $383,483,000. Legal & General Group Plc acquired a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at approximately $265,887,000. Man Group plc acquired a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at approximately $240,389,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Chipotle Mexican Grill during the 2nd quarter valued at approximately $222,809,000. Institutional investors and hedge funds own 91.30% of the company’s stock.

Key Stories Impacting Chipotle Mexican Grill

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Morgan Stanley raised its price target for Chipotle Mexican Grill (CMG) from $39 to $40 while maintaining an “equal weight” rating. The target implies substantial potential upside from recent levels, suggesting the firm views the selloff as excessive relative to long-term value.
• Positive Sentiment: UBS expects Chipotle’s sales growth to strengthen in 2027, potentially aided by new initiatives and a recovery in customer demand. Historical performance also provides some optimism: the stock generated double-digit fourth-quarter returns in 2020 and 2023, while management continues investing in initiatives designed to drive traffic and growth. Here’s What History Says Q4 Will Bring for Chipotle Stock
• Neutral Sentiment: Chipotle is attracting significant investor attention, making it a heavily watched stock. That visibility could increase trading activity, but the coverage itself does not provide a new fundamental catalyst. What to Know Beyond Why Chipotle Is a Trending Stock
• Negative Sentiment: UBS expects third-quarter sales to be broadly in line, with same-store sales growth of approximately 1.5%, only modestly above the 1.3% consensus estimate. However, weaker trends early in the fourth quarter and continued pressure on sales growth and restaurant margins could weigh on CMG until a possible 2027 recovery. Chipotle Faces Near-Term Sales Pressures but UBS Sees Stronger Growth in 2027
• Negative Sentiment: Stephens lowered its price target from $40 to $38 and kept an “equal weight” rating. Although the revised target remains above the recent share price, the reduction reinforces concerns about Chipotle’s near-term operating momentum.
• Negative Sentiment: CMG has declined sharply over the past month despite no new earnings report, underperforming the broader market. Investors appear increasingly concerned about valuation, slowing restaurant traffic and whether management’s initiatives can revive growth quickly. How Risky Is Chipotle Stock?

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that specializes in Mexican-inspired food made with a limited number of core ingredients. Its menu includes burritos, burrito bowls, tacos, quesadillas, salads and sides, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company also offers beverages, including soft drinks and other drinks, and allows customers to customize meals.

Founded by Steve Ells in 1993, Chipotle operates company-owned restaurants under the Chipotle Mexican Grill brand.