Chipotle Mexican Grill Receives Outperform Rating from Wedbush

On Wednesday, equities research analysts at Wedbush reaffirmed their "outperform" rating for Chipotle Mexican Grill (NYSE:CMG). They set a target price of $69.00 for the restaurant chain, indicating that there could be a potential upside of 23.81% based on the company's closing stock price before the report.

Several other analysts have also weighed in on Chipotle's performance. TD Cowen increased their target price for Chipotle from $65.00 to $68.00, giving it a "buy" rating. Similarly, Wells Fargo raised their price objective from $66.00 to $67.00, rating the stock as "overweight." On August 14th, Deutsche Bank maintained a "buy" rating for Chipotle and set a $67.00 price target. Evercore ISI noted an increase in their price objective from $59.00 to $70.00 while keeping their "outperform" rating. Conversely, Citigroup lowered their target from $71.00 to $70.00 but still rated it as a "buy." Overall, ten analysts recommend holding the stock while eighteen suggest buying it. According to MarketBeat.com, Chipotle has an average rating of "Moderate Buy" with an average price target of $64.47.

Current Stock Performance

During trading on Wednesday, Chipotle shares decreased by $4.76, bringing the price down to $55.73. Approximately 28,240,745 shares were traded, exceeding the average trading volume of 13,972,897 shares. The company has a market cap of $76.32 billion, a PE ratio of 54.64, a price-to-earnings-growth ratio of 2.41, and a beta of 1.25. Chipotle's 50-day moving average stands at $57.10, while its 200-day moving average is $81.50. Over the past year, the stock has seen a low of $38.01 and a high of $69.26.

In their latest quarterly earnings report, dated October 29th, Chipotle reported earnings per share (EPS) of $0.27, which exceeded analysts' expectations of $0.25. The company generated revenue of $2.79 billion for the quarter, slightly below the expected $2.82 billion. Notably, the company achieved a net margin of 13.23% and a return on equity of 44.01%, with a year-over-year revenue increase of 13.0%. The previous year's earnings for the same period were $0.23 per share. Analysts predict that Chipotle will post an EPS of 1.08 for the current fiscal year.

Insider Trading Activities

In related news, Director Robin S. Hickenlooper sold 1,790 shares on September 12th at an average price of $56.38, resulting in a transaction value of $100,920.20. Following this sale, Hickenlooper owns 41,510 shares, valued at approximately $2,340,333.80. Similarly, insider Curtis E. Garner sold 15,750 shares on September 11th for a total of $866,565.00, leaving Garner with 473,514 shares, worth about $26,052,740.28. Over the last 90 days, insiders have sold a total of 50,684 shares worth $2,817,127, with corporate insiders holding 1.02% of the company's stock.

Institutional Investor Movements

A number of institutional investors have adjusted their holdings in Chipotle recently. Global Wealth Management Investment Advisory Inc. acquired a new position in Chipotle, valued at around $1,757,000. Heritage Investors Management Corp increased its stake by 10.7%, now owning 411,356 shares valued at $23,702,000. Other firms that have raised their holdings include Arthur M. Cohen & Associates LLC, Pittenger & Anderson Inc., and Amalgamated Bank. Notably, institutional investors currently own 91.31% of Chipotle's stock.

Company Overview

Chipotle Mexican Grill, Inc. operates numerous restaurants, offering a range of food and beverages including burritos, burrito bowls, quesadillas, tacos, and salads. The company also offers delivery services via its app and website, with operations in the United States, Canada, France, Germany, and the United Kingdom.

Chipotle, Stock, Analysis