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

Key Points

• Citigroup lowered Chipotle’s price target from $45 to $43 while maintaining a “buy” rating, implying 44.06% potential upside from the prior close.
• Analyst sentiment remains favorable overall, with 22 buy ratings and 10 holds; MarketBeat lists a “Moderate Buy” consensus and an average price target of $43.59.
• Chipotle’s latest quarterly results slightly exceeded expectations, with EPS of $0.33 versus $0.32 expected and revenue of $3.35 billion, up 9.3% year over year.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its price target reduced by stock analysts at Citigroup from $45.00 to $43.00 in a report released on Monday, Benzinga reports. The brokerage presently has a "buy" rating on the restaurant operator's stock. Citigroup's price target would suggest a potential upside of 44.06% from the stock's previous close.

Several other equities analysts also recently commented on the stock. Evercore reissued an "outperform" rating and set a $47.00 target price on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. DA Davidson raised their target price on Chipotle Mexican Grill from $45.00 to $50.00 and gave the company a "buy" rating in a report on Thursday, July 30th. Stephens reduced their price target on Chipotle Mexican Grill from $40.00 to $38.00 and set an "equal weight" rating for the company in a research report on Thursday. Bank of America reiterated a "buy" rating and set a $53.00 price target (up from $50.00) on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. Finally, Raymond James Financial decreased their price target on Chipotle Mexican Grill from $42.50 to $37.00 and set an "outperform" rating for the company in a research note on Friday. Twenty-two investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $43.59.

Chipotle Mexican Grill Stock Down 0.1%

CMG stock traded down $0.04 during trading hours on Monday, hitting $29.85. The company's stock had a trading volume of 25,585,307 shares, compared to its average volume of 17,779,084. The company has a market capitalization of $37.77 billion, a PE ratio of 27.38, a price-to-earnings-growth ratio of 1.83 and a beta of 0.96. Chipotle Mexican Grill has a 12 month low of $28.03 and a 12 month high of $42.74. The stock has a 50 day moving average price of $33.97 and a two-hundred day moving average price of $33.48.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, topping the consensus estimate 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 company had revenue of $3.35 billion for the quarter, compared to analyst estimates of $3.33 billion. During the same quarter in the prior year, the business posted $0.33 EPS. Chipotle Mexican Grill's quarterly revenue was up 9.3% on a year-over-year basis. Sell-side analysts expect that Chipotle Mexican Grill will post 1.14 earnings per share for the current year.

Insider Activity

In related news, insider Matthew R. Bush sold 2,675 shares of the firm's stock in a transaction on Friday, August 21st. The shares were sold at an average price of $35.75, for a total value of $95,631.25. Following the transaction, the insider directly owned 21,415 shares in the company, valued at approximately $765,586.25. This trade represents a 11.10% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 0.45% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Citizens Financial Group Inc. RI increased its holdings in shares of Chipotle Mexican Grill by 2.5% in the first quarter. Citizens Financial Group Inc. RI now owns 12,708 shares of the restaurant operator's stock valued at $407,000 after purchasing an additional 311 shares in the last quarter. ANB Bank raised its position in Chipotle Mexican Grill by 5.8% in the 1st quarter. ANB Bank now owns 6,317 shares of the restaurant operator's stock worth $202,000 after purchasing an additional 349 shares during the last quarter. State of Wyoming raised its position in Chipotle Mexican Grill by 10.9% in the 1st quarter. State of Wyoming now owns 3,759 shares of the restaurant operator's stock worth $120,000 after purchasing an additional 368 shares during the last quarter. Valmark Advisers Inc. lifted its holdings in Chipotle Mexican Grill by 2.9% during the 1st quarter. Valmark Advisers Inc. now owns 13,275 shares of the restaurant operator's stock worth $425,000 after buying an additional 377 shares in the last quarter. Finally, Western Pacific Wealth Management LP lifted its holdings in Chipotle Mexican Grill by 26.3% during the 1st quarter. Western Pacific Wealth Management LP now owns 2,023 shares of the restaurant operator's stock worth $65,000 after buying an additional 421 shares in the last quarter. Institutional investors and hedge funds own 91.30% of the company's stock.

About Chipotle Mexican Grill

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.

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