Chipotle Mexican Grill (NYSE:CMG) Earns "Buy" Rating from DA Davidson

Key Points

• DA Davidson reaffirmed its “buy” rating on Chipotle and set a $45 price target, implying 44.58% upside from the previous close.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $42.97 from 37 analysts.
• Chipotle’s quarterly revenue rose 9.6% year over year to $3.29 billion, but adjusted earnings of $0.27 per share missed estimates and declined from the prior year amid rising beef costs and higher protein usage.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report)'s stock had its "buy" rating reaffirmed by equities researchers at DA Davidson in a note issued to investors on Thursday, Benzinga reports. They currently have a $45.00 price objective on the restaurant operator's stock. DA Davidson's target price suggests a potential upside of 44.58% from the company's previous close.

Several other equities analysts also recently issued reports on the stock. Deutsche Bank Aktiengesellschaft dropped their price target on shares of Chipotle Mexican Grill from $51.00 to $45.00 and set a "buy" rating for the company in a research note on Wednesday, October 21st. Piper Sandler reduced their price target on Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating on the stock in a research report on Thursday, July 30th. Bank of America reissued a "buy" rating and issued a $53.00 price target (up from $50.00) on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. JPMorgan Chase & Co. cut their price objective on Chipotle Mexican Grill from $40.00 to $37.00 and set an "overweight" rating on the stock in a research note on Tuesday, September 29th. Finally, BMO Capital Markets restated an "outperform" rating and set a $50.00 price target on shares of Chipotle Mexican Grill in a report on Thursday. Twenty-seven analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $42.97.

Chipotle Mexican Grill Price Performance

NYSE CMG traded up $2.40 during trading hours on Thursday, reaching $31.12. The company's stock had a trading volume of 19,103,263 shares, compared to its average volume of 17,967,520. The firm has a fifty day simple moving average of $33.20 and a 200-day simple moving average of $34.21. The stock has a market cap of $39.39 billion, a P/E ratio of 28.57, a P/E/G ratio of 1.67 and a beta of 0.96. Chipotle Mexican Grill has a 52 week low of $27.31 and a 52 week high of $41.42.

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

Insider Buying and Selling 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 directly owned 21,415 shares of the company's stock, valued at $765,586.25. This represents a 11.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.45% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in the business. BlackRock Inc. purchased a new position in shares of Chipotle Mexican Grill in the second quarter worth $4,417,475,000. Arrowstreet Capital Limited Partnership raised its position in Chipotle Mexican Grill by 19.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 16,478,248 shares of the restaurant operator's stock valued at $527,469,000 after purchasing an additional 2,727,762 shares during the last quarter. Amundi lifted its holdings in 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 buying an additional 2,266,087 shares during the period. Bank of America Corp DE purchased a new position in shares of Chipotle Mexican Grill during the second quarter valued at approximately $383,483,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in shares of Chipotle Mexican Grill by 30.6% during the second 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 valued at $368,751,000 after buying an additional 2,541,795 shares during the period. 91.30% of the stock is owned by institutional investors.

Trending Headlines about Chipotle Mexican Grill

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

• Positive Sentiment: Third-quarter revenue rose 9.6% year over year to $3.29 billion, in line with estimates, while comparable-restaurant sales increased 2.1%. Chipotle also reported positive transaction growth for the third consecutive quarter, supported by value offers and limited-time menu items. Chipotle beats quarterly sales expectations on resilient demand
• Positive Sentiment: Expansion remains a key growth driver: Chipotle opened 84 company-owned restaurants during the quarter, and its loyalty program surpassed 24 million members. The company is also expanding drive-thru “Chipotlanes.” Chipotle: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts maintained bullish or constructive views: Oppenheimer reaffirmed an “outperform” rating with a $51 target, while BTIG Research maintained “buy” with a $45 target. Stephens retained “equal weight” with a $38 target. These targets imply substantial potential upside from recent levels.
• Neutral Sentiment: Management is relying on the fourth-quarter launch of brisket to sustain momentum. Its reception could be an important near-term test of Chipotle’s promotional and menu-innovation strategy. The rest of Chipotle's year hinges on brisket
• Negative Sentiment: Adjusted earnings of $0.27 per share missed the $0.29 consensus estimate and declined from $0.29 a year earlier. Rising beef costs and higher protein usage are creating additional pressure on profitability. Chipotle Mexican Grill Q3 Earnings Lag Estimates
• Negative Sentiment: Analyst sentiment remains divided: TD Cowen reaffirmed a “hold” rating with a $32 target, and Bernstein reduced its target from $50 to $43, signaling continued caution about growth and margins.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.