Chipotle Mexican Grill (NYSE:CMG) Stock Gets Price Target Reduction from Stephens

Chipotle Mexican Grill (NYSE:CMG) had its price objective dropped by stock analysts at Stephens from $40.00 to $38.00 in a research report issued on Thursday, October 15th, Benzinga reports. The firm currently has an “equal weight” rating on the restaurant operator’s stock. Stephens‘s price objective indicates a potential upside of 21.28% from the company’s previous close.

CMG has been the topic of several other reports. DA Davidson raised their price objective on Chipotle Mexican Grill from $45.00 to $50.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Morgan Stanley upped their price target on shares of Chipotle Mexican Grill from $37.00 to $39.00 and gave the stock an “equal weight” rating in a report on Thursday, July 30th. BTIG Research reiterated a “buy” rating and issued a $45.00 target price on shares of Chipotle Mexican Grill in a research report on Wednesday, August 5th. Mizuho restated an “outperform” rating and issued a $43.00 target price on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. Finally, Raymond James Financial reaffirmed an “outperform” rating and issued a $42.50 target price on shares of Chipotle Mexican Grill in a research note on Thursday, July 30th. Twenty-seven equities research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $42.47.

Chipotle Mexican Grill Stock Up 9.1%

CMG traded up $2.60 during trading hours on Thursday, hitting $31.33. 42,432,740 shares of the company’s stock were exchanged, compared to its average volume of 18,084,094. The stock’s 50-day moving average is $33.20 and its two-hundred day moving average is $34.21. The stock has a market cap of $39.65 billion, a price-to-earnings ratio of 28.74, a PEG ratio of 1.67 and a beta of 0.96. Chipotle Mexican Grill has a 1-year low of $27.31 and a 1-year high of $41.42.

Chipotle Mexican Grill (NYSE:CMG) last issued its quarterly earnings data on Wednesday, October 28th. The restaurant operator reported $0.27 earnings per share for the quarter, missing the consensus estimate of $0.29 by ($0.02). The business had revenue of $3.29 billion during the quarter, compared to analyst estimates of $3.29 billion. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. Chipotle Mexican Grill’s revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter last year, the firm earned $0.29 EPS. On average, equities research analysts anticipate that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insider Activity at Chipotle Mexican Grill

In other news, insider Matthew R. Bush sold 2,675 shares of the company’s stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the transaction, the insider owned 21,415 shares of the company’s stock, valued at approximately $765,586.25. This represents a 11.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 0.45% of the company’s stock.

Hedge Funds Weigh In On Chipotle Mexican Grill

A number of large investors have recently added to or reduced their stakes in CMG. BlackRock Inc. acquired a new position in shares of Chipotle Mexican Grill during the second quarter worth $4,417,475,000. Arrowstreet Capital Limited Partnership boosted its position in shares of Chipotle Mexican Grill by 19.8% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 16,478,248 shares of the restaurant operator’s stock worth $527,469,000 after purchasing an additional 2,727,762 shares in the last quarter. Amundi boosted its position in shares of Chipotle Mexican Grill by 23.3% in the 1st quarter. Amundi now owns 11,980,192 shares of the restaurant operator’s stock worth $383,486,000 after purchasing an additional 2,266,087 shares in the last quarter. Bank of America Corp DE grew its stake in Chipotle Mexican Grill by 86.1% during the 1st quarter. Bank of America Corp DE now owns 11,973,752 shares of the restaurant operator’s stock worth $383,280,000 after buying an additional 5,541,385 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in Chipotle Mexican Grill by 30.6% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 10,845,627 shares of the restaurant operator’s stock worth $368,751,000 after buying an additional 2,541,795 shares during the last quarter. 91.30% of the stock is currently owned by institutional investors.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Third-quarter revenue rose 9.6% to $3.29 billion, in line with expectations, while comparable-restaurant sales increased 2.1% and transactions grew for the third consecutive quarter. Value offers and limited-time menu items helped attract diners. Chipotle beats quarterly sales expectations on resilient demand
• Positive Sentiment: Investors responded favorably to signs of a traffic recovery following earlier food-safety concerns. New menu launches, refreshed loyalty benefits and plans to accelerate technology and menu innovation are supporting the turnaround. Chipotle Sales Beat as New Chicken, Chips Bring Diners Back
• Positive Sentiment: Chipotle opened 84 company-owned restaurants during the quarter, and its loyalty program surpassed 24 million members, providing additional long-term growth and customer-engagement potential. Chipotle: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts maintained bullish ratings, including DA Davidson and BTIG Research at $45 targets and Oppenheimer at a $51 target, implying substantial upside based on the supplied reference price. Oppenheimer analyst rating
• Neutral Sentiment: Analyst opinion remains mixed: Citigroup kept a Buy rating while cutting its target to $41, whereas BNP Paribas Exane retained Neutral and reduced its target to $36. Bernstein also lowered its target to $43 from $50. Citigroup price target
• Negative Sentiment: Adjusted earnings were $0.27 per share, below the $0.29 consensus and last year’s $0.29, as higher operating costs, beef prices and increased protein usage pressured margins. Chipotle Q3 earnings miss estimates
• Negative Sentiment: Management’s outlook calls for only modestly higher sales, leaving investors dependent on the fourth-quarter brisket launch, continued traffic gains and successful cost management to sustain the recovery. The rest of Chipotle’s year hinges on brisket

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc (NYSE: CMG) operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.

Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.