Chipotle Mexican Grill (NYSE:CMG) Stock Price Target Cut by Wells Fargo & Company

Key Points

• Wells Fargo cut Chipotle’s price target from $45 to $40 but maintained its “overweight” rating, implying approximately 40.8% upside from the stock’s $28.41 price.
• Analyst sentiment remains favorable overall: 21 analysts rate CMG a Buy and 11 rate it a Hold, resulting in a “Moderate Buy” consensus and an average price target of $42.96.
• Chipotle slightly exceeded quarterly expectations, reporting $0.33 in earnings per share and $3.35 billion in revenue, with revenue up 9.3% year over year.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its price target cut by investment analysts at Wells Fargo & Company from $45.00 to $40.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "overweight" rating on the restaurant operator's stock. Wells Fargo & Company's target price would indicate a potential upside of 40.77% from the company's current price.

CMG has been the topic of a number of other reports. Robert W. Baird restated a "neutral" rating and set a $40.00 price objective (down from $44.00) on shares of Chipotle Mexican Grill in a research note on Monday, August 24th. UBS Group reiterated a "buy" rating on shares of Chipotle Mexican Grill in a research report on Friday, October 9th. Bank of America reissued a "buy" rating and set a $53.00 target price (up from $50.00) on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. Stephens lowered their target price on shares of Chipotle Mexican Grill from $40.00 to $38.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 15th. Finally, Evercore restated an "outperform" rating and set a $47.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Twenty-one research analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $42.96.

Chipotle Mexican Grill Price Performance

CMG opened at $28.41 on Wednesday. Chipotle Mexican Grill has a 12 month low of $28.03 and a 12 month high of $42.38. The stock has a market cap of $35.96 billion, a P/E ratio of 26.09, a P/E/G ratio of 1.83 and a beta of 0.96. The stock's 50 day moving average price is $33.88 and its 200 day moving average price is $33.45.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating the consensus estimate of $0.32 by $0.01. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The firm had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter in the previous year, the business earned $0.33 EPS. The firm's revenue for the quarter was up 9.3% on a year-over-year basis. Equities analysts anticipate that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insider Activity

In other news, insider Matthew R. Bush sold 2,675 shares of the business's stock in a transaction on Friday, August 21st. The stock was sold at an average price of $35.75, for a total value of $95,631.25. Following the sale, the insider owned 21,415 shares of the company's stock, valued at approximately $765,586.25. The trade was a 11.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.45% of the company's stock.

Institutional Trading of Chipotle Mexican Grill

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

Key Chipotle Mexican Grill News

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

• Positive Sentiment: Citigroup maintained a Buy rating despite lowering its price target to $43 from $45, implying substantial potential upside from current levels. The firm’s view suggests confidence that Chipotle’s operational recovery can support long-term growth. Citigroup Has Lowered Expectations for Chipotle Mexican Grill Stock Price
• Positive Sentiment: Bank of America expects third-quarter results to show continued comparable-sales recovery, supporting management’s “Recipe for Growth” strategy. The company has reportedly delivered two consecutive quarters of comparable-sales growth. Chipotle Q3 Results Expected to Show Continued Sales Recovery
• Positive Sentiment: Chipotle’s Cultivate Next venture fund participated in a $12 million investment in agricultural-biologicals company IMIO. The deal could support the restaurant chain’s longer-term supply-chain resilience and sustainability efforts, although it is not expected to materially affect near-term earnings. IMIO Raises $12M from Sofinnova Partners and Chipotle’s Cultivate Next
• Neutral Sentiment: Chipotle is expected to report quarterly earnings on Wednesday. Results, comparable sales, traffic trends and management’s outlook will likely be the next major catalysts for CMG. Chipotle Projected to Announce Quarterly Earnings
• Neutral Sentiment: The company will bring back its Halloween Boorito promotion, offering $6 entrées to eligible Rewards members in costume. The campaign may boost traffic and engagement but involves discounted pricing. Boorito Returns: Chipotle to Offer $6 Entrées
• Negative Sentiment: TD Cowen reaffirmed a Hold rating but cut its price target sharply to $32 from $44. The reduction signals weaker near-term confidence and is the clearest recent pressure on the stock.
• Negative Sentiment: Analysts remain concerned that CMG’s valuation is elevated relative to reported profitability. Trefis notes that adjusted earnings valuation is steep for a restaurant chain whose recent net income has declined, increasing the stock’s sensitivity to any earnings or traffic disappointment. What Are Chipotle Investors Betting On?

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.

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