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

Key Points

• Citigroup cut its price target on Chipotle from $49 to $44 but kept a "buy" rating, a target that implies roughly a 26.5% upside from the stock's current price (~$34.79).
• Analyst consensus remains positive with a “Moderate Buy” rating: 24 Buys, 11 Holds and 1 Sell, and an average price target of $46.97.
• Large institutional investors have been accumulating shares—Vanguard, Capital World and others significantly increased holdings and Norges Bank initiated a new ~$712 million stake, leaving the stock ~91.3% owned by institutions.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) had its target price cut by stock analysts at Citigroup from $49.00 to $44.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the restaurant operator's stock. Citigroup's price target indicates a potential upside of 26.49% from the stock's current price.

Other equities analysts also recently issued research reports about the stock. Argus reissued a "hold" rating on shares of Chipotle Mexican Grill in a research note on Thursday, February 5th. Evercore reissued an "outperform" rating and issued a $45.00 price objective on shares of Chipotle Mexican Grill in a research note on Friday, December 19th. Telsey Advisory Group reduced their price objective on shares of Chipotle Mexican Grill from $50.00 to $48.00 and set an "outperform" rating for the company in a research note on Wednesday, February 4th. DA Davidson assumed coverage on shares of Chipotle Mexican Grill in a research note on Friday, March 6th. They issued a "buy" rating and a $51.00 price objective for the company. Finally, TD Cowen reaffirmed a "buy" rating and set a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Friday, March 20th. Twenty-four analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $46.97.

Chipotle Mexican Grill Trading Up 0.6%

Shares of Chipotle Mexican Grill stock traded up $0.20 on Tuesday, hitting $34.79. 4,040,168 shares of the company traded hands, compared to its average volume of 16,576,279. The stock's 50 day moving average price is $35.29 and its 200-day moving average price is $36.45. Chipotle Mexican Grill has a 52 week low of $29.75 and a 52 week high of $58.42. The company has a market cap of $45.31 billion, a PE ratio of 30.51, a PEG ratio of 2.09 and a beta of 1.06.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last issued its quarterly earnings data on Tuesday, February 3rd. The restaurant operator reported $0.25 EPS for the quarter, topping analysts' consensus estimates of $0.24 by $0.01. The company had revenue of $2.98 billion during the quarter, compared to the consensus estimate of $2.96 billion. Chipotle Mexican Grill had a net margin of 12.88% and a return on equity of 47.99%. Chipotle Mexican Grill's revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.25 earnings per share. As a group, research analysts anticipate that Chipotle Mexican Grill will post 1.29 EPS for the current fiscal year.

Hedge Funds Weigh In On Chipotle Mexican Grill

A number of large investors have recently made changes to their positions in the business. Vanguard Group Inc. grew its holdings in shares of Chipotle Mexican Grill by 14.8% during the fourth quarter. Vanguard Group Inc. now owns 144,588,220 shares of the restaurant operator's stock valued at $5,349,764,000 after buying an additional 18,660,882 shares during the last quarter. Capital World Investors grew its holdings in shares of Chipotle Mexican Grill by 15.8% during the fourth quarter. Capital World Investors now owns 101,688,010 shares of the restaurant operator's stock valued at $3,762,457,000 after buying an additional 13,843,222 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of Chipotle Mexican Grill by 18.8% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 58,447,867 shares of the restaurant operator's stock valued at $2,162,572,000 after buying an additional 9,237,720 shares during the last quarter. Capital International Investors grew its holdings in shares of Chipotle Mexican Grill by 17.7% during the fourth quarter. Capital International Investors now owns 45,294,212 shares of the restaurant operator's stock valued at $1,675,895,000 after buying an additional 6,796,285 shares during the last quarter. Finally, Norges Bank purchased a new stake in shares of Chipotle Mexican Grill during the fourth quarter valued at $711,837,000. 91.30% of the stock is owned by institutional investors and hedge funds.

About Chipotle Mexican Grill

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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