Stephens Has Lowered Expectations for Chipotle Mexican Grill (NYSE:CMG) Stock Price

Key Points

• Stephens cut Chipotle’s price target from $40 to $38 while maintaining an “equal weight” rating, implying roughly 23% upside from the prior close.
• Analyst sentiment remains broadly positive: Chipotle has 22 Buy ratings and 10 Holds, with a consensus “Moderate Buy” rating and an average price target of $43.83.
• Shares recently traded at $30.88, near the lower end of their 12-month range, despite quarterly results that slightly exceeded earnings and revenue expectations; institutional investors own 91.3% of the stock.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its price objective cut by equities research analysts at Stephens from $40.00 to $38.00 in a note issued to investors on Thursday, Benzinga reports. The brokerage currently has an "equal weight" rating on the restaurant operator's stock. Stephens' price target points to a potential upside of 23.07% from the company's previous close.

CMG has been the subject of a number of other research reports. Mizuho reiterated an "outperform" rating and issued a $43.00 target price on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. DA Davidson raised their price objective on shares of Chipotle Mexican Grill from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Morgan Stanley boosted their target price on Chipotle Mexican Grill from $37.00 to $39.00 and gave the stock an "equal weight" rating in a report on Thursday, July 30th. JPMorgan Chase & Co. lowered their price target on Chipotle Mexican Grill from $40.00 to $37.00 and set an "overweight" rating on the stock in a research report on Tuesday, September 29th. Finally, Piper Sandler cut their price objective on Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating for the company in a report on Thursday, July 30th. Twenty-two investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company's stock. According to data from MarketBeat, Chipotle Mexican Grill currently has an average rating of "Moderate Buy" and a consensus price target of $43.83.

Chipotle Mexican Grill Stock Performance

Shares of CMG traded up $0.36 during mid-day trading on Thursday, reaching $30.88. 4,172,609 shares of the company's stock traded hands, compared to its average volume of 17,673,578. The business's 50-day moving average price is $34.09 and its 200-day moving average price is $33.49. The stock has a market capitalization of $39.07 billion, a P/E ratio of 28.35, a price-to-earnings-growth ratio of 1.86 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.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, beating the consensus estimate of $0.32 by $0.01. The firm had revenue of $3.35 billion for the quarter, compared to analysts' expectations of $3.33 billion. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The firm's revenue was up 9.3% compared to the same quarter last year. During the same period last year, the firm earned $0.33 EPS. Equities research 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 transaction of $95,631.25. Following the sale, the insider directly owned 21,415 shares of the company's stock, valued at $765,586.25. The trade was 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 at this link. 0.45% of the stock is owned by insiders.

Hedge Funds Weigh In On Chipotle Mexican Grill

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. bought a new stake in Chipotle Mexican Grill in the 2nd quarter valued at $4,417,475,000. Arrowstreet Capital Limited Partnership lifted its holdings in shares of 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 worth $527,469,000 after acquiring an additional 2,727,762 shares during the period. Amundi boosted its position in shares of Chipotle Mexican Grill by 23.3% during the 1st quarter. Amundi now owns 11,980,192 shares of the restaurant operator's stock valued at $383,486,000 after acquiring an additional 2,266,087 shares in the last quarter. Bank of America Corp DE acquired a new stake in shares of Chipotle Mexican Grill during the 2nd quarter valued at about $383,483,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in Chipotle Mexican Grill by 30.6% in 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 acquiring an additional 2,541,795 shares during the period. Institutional investors and hedge funds own 91.30% of the company's stock.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that specializes in Mexican-inspired food made with a limited number of core ingredients. Its menu includes burritos, burrito bowls, tacos, quesadillas, salads and sides, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company also offers beverages, including soft drinks and other drinks, and allows customers to customize meals.

Founded by Steve Ells in 1993, Chipotle operates company-owned restaurants under the Chipotle Mexican Grill brand.

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