Chipotle Mexican Grill Target of Unusually Large Options Trading (NYSE:CMG)

Key Points

• Unusual options activity: Traders purchased 62,143 CMG call options, 25% above the average daily call volume of 49,651.
• Analyst sentiment remains positive: Chipotle has a consensus “Moderate Buy” rating from 33 analysts, with 24 Buy ratings and a consensus price target of $44.16.
• Shares rose 4.8% to $34.97 after the company slightly exceeded quarterly earnings and revenue estimates; revenue increased 9.3% year over year.

Chipotle Mexican Grill, Inc. (NYSE:CMG - Get Free Report) was the recipient of some unusual options trading on Wednesday. Stock traders acquired 62,143 call options on the stock. This is an increase of 25% compared to the average daily volume of 49,651 call options.

Hedge Funds Weigh In On Chipotle Mexican Grill

Several institutional investors have recently added to or reduced their stakes in the business. Revolve Wealth Partners LLC lifted its holdings in Chipotle Mexican Grill by 4.7% in the fourth quarter. Revolve Wealth Partners LLC now owns 4,804 shares of the restaurant operator's stock valued at $290,000 after acquiring an additional 214 shares during the period. City State Bank grew its stake in shares of Chipotle Mexican Grill by 13.4% during the 4th quarter. City State Bank now owns 2,330 shares of the restaurant operator's stock worth $86,000 after purchasing an additional 275 shares during the period. Groupama Asset Managment increased its holdings in shares of Chipotle Mexican Grill by 1.9% in the 4th quarter. Groupama Asset Managment now owns 15,596 shares of the restaurant operator's stock valued at $568,000 after purchasing an additional 291 shares in the last quarter. Catalyst Financial Partners LLC lifted its stake in shares of Chipotle Mexican Grill by 4.6% in the fourth quarter. Catalyst Financial Partners LLC now owns 6,763 shares of the restaurant operator's stock valued at $250,000 after purchasing an additional 298 shares during the period. Finally, Citizens Financial Group Inc. RI lifted its stake 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 during the period. 91.30% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of research firms have commented on CMG. UBS Group reiterated a "buy" rating on shares of Chipotle Mexican Grill in a research report on Friday, July 31st. Guggenheim restated a "neutral" rating and issued a $36.00 price target (up from $35.00) on shares of Chipotle Mexican Grill in a research report on Friday, July 31st. DA Davidson boosted their price objective on shares of Chipotle Mexican Grill from $45.00 to $50.00 and gave the stock a "buy" rating in a research report on Thursday, July 30th. Piper Sandler lowered their price objective on shares of Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Finally, BNP Paribas Exane increased their price objective on shares of Chipotle Mexican Grill from $37.00 to $39.00 and gave the company a "neutral" rating in a research note on Thursday, April 30th. Twenty-four equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. Based on data from MarketBeat, Chipotle Mexican Grill currently has a consensus rating of "Moderate Buy" and a consensus price target of $44.16.

Chipotle Mexican Grill Stock Up 4.8%

Shares of CMG traded up $1.61 during trading hours on Wednesday, reaching $34.97. 8,129,913 shares of the company traded hands, compared to its average volume of 17,951,887. The stock has a market capitalization of $44.25 billion, a PE ratio of 32.08, a price-to-earnings-growth ratio of 2.13 and a beta of 0.94. The stock has a fifty day simple moving average of $33.55 and a 200 day simple moving average of $34.03. Chipotle Mexican Grill has a fifty-two week low of $28.03 and a fifty-two week high of $43.99.

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

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill is a fast-casual restaurant company known for its Mexican-inspired menu of burritos, bowls, tacos and salads. Founded in 1993 by Steve Ells, the chain emphasizes fresh, customizable meals made from a limited menu of core ingredients and a focus on ingredient quality. Chipotle operates primarily company-owned restaurants and offers dine-in, takeout, catering and delivery through its own digital platforms and third-party partners.

The company is headquartered in Newport Beach, California, and traces its roots to Denver, Colorado.

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