JPMorgan Chase & Co. Has Lowered Expectations for Chipotle Mexican Grill (NYSE:CMG) Stock Price

Key Points

• JPMorgan lowered Chipotle’s price target from $37 to $36 while maintaining an “overweight” rating, implying approximately 14.9% upside from the previous close.
• Analyst sentiment remains broadly positive but mixed: Chipotle has a “Moderate Buy” consensus rating and an average target of $42.44, although several firms recently reduced their targets.
• Chipotle’s quarterly revenue rose 9.6% to $3.29 billion, but earnings per share of $0.27 missed estimates. Shares traded up 9.1% to $31.33, despite margin pressure from higher operating and food costs.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its price objective decreased by investment analysts at JPMorgan Chase & Co. from $37.00 to $36.00 in a note issued to investors on Thursday, Benzinga reports. The firm currently has an "overweight" rating on the restaurant operator's stock. JPMorgan Chase & Co.'s price objective would suggest a potential upside of 14.90% from the stock's previous close.

CMG has been the subject of several other reports. BMO Capital Markets reiterated an "outperform" rating and set a $50.00 target price on shares of Chipotle Mexican Grill in a report on Thursday. Guggenheim restated a "neutral" rating and issued a $32.00 price target (down from $36.00) on shares of Chipotle Mexican Grill in a research note on Thursday. BTIG Research reaffirmed a "buy" rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a research report on Thursday. Telsey Advisory Group set a $40.00 price objective on Chipotle Mexican Grill in a research report on Thursday. Finally, Robert W. Baird lowered their price objective on Chipotle Mexican Grill from $40.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday, October 2nd. Twenty-seven investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $42.44.

Chipotle Mexican Grill Trading Up 9.1%

NYSE CMG traded up $2.60 during trading on Thursday, hitting $31.33. The company had a trading volume of 42,442,003 shares, compared to its average volume of 18,084,322. The company's fifty day moving average is $33.20 and its 200-day moving average is $34.21. Chipotle Mexican Grill has a one year low of $27.31 and a one year high of $41.42. The company has a market cap of $39.65 billion, a price-to-earnings ratio of 28.74, a price-to-earnings-growth ratio of 1.67 and a beta of 0.96.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last released its quarterly earnings results 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 firm had revenue of $3.29 billion for the quarter, compared to the consensus estimate of $3.29 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The company's revenue for the quarter was up 9.6% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.29 earnings per share. As a group, equities analysts anticipate that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insiders Place Their Bets

In related 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 value of $95,631.25. Following the transaction, the insider directly owned 21,415 shares of the company's stock, valued at approximately $765,586.25. This represents a 11.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 0.45% of the stock is currently owned by insiders.

Institutional Trading of Chipotle Mexican Grill

A number of institutional investors and hedge funds have recently modified their holdings of CMG. Greenleaf Trust boosted its position in shares of Chipotle Mexican Grill by 3.4% during the third quarter. Greenleaf Trust now owns 19,573 shares of the restaurant operator's stock valued at $625,000 after buying an additional 646 shares during the last quarter. Nippon Life Global Investors Americas Inc. raised its position in Chipotle Mexican Grill by 754.6% in the 3rd quarter. Nippon Life Global Investors Americas Inc. now owns 360,320 shares of the restaurant operator's stock worth $11,512,000 after buying an additional 318,160 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. purchased a new position in Chipotle Mexican Grill in the 3rd quarter worth about $10,854,000. Invera Wealth Advisors LLC raised its position in Chipotle Mexican Grill by 10.9% in the 3rd quarter. Invera Wealth Advisors LLC now owns 36,355 shares of the restaurant operator's stock worth $1,162,000 after buying an additional 3,586 shares during the last quarter. Finally, MGO One Seven LLC lifted its stake in Chipotle Mexican Grill by 8.7% during the 3rd quarter. MGO One Seven LLC now owns 53,760 shares of the restaurant operator's stock valued at $1,718,000 after acquiring an additional 4,296 shares during the period. Institutional investors own 91.30% of the company's stock.

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% 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.

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