32,872 Chipotle Mexican Grill, Inc. $CMG Shares Bought by Jacobs & Co. CA

Key Points

• Jacobs & Co. CA increased its Chipotle stake by 12%, buying 32,872 additional shares to own 305,927 shares valued at approximately $9.8 million. Institutional investors collectively own 91.3% of CMG.
• Analysts maintain a generally positive outlook, with 23 Buy ratings and 10 Hold ratings producing a “Moderate Buy” consensus and an average price target of $43.91.
• Chipotle’s shares have been supported by reports that Starbucks may explore a roughly $39 billion–$41 billion acquisition, though no formal bid has been made. Upcoming third-quarter earnings and concerns about financing, integration and management distraction remain important risks.

Jacobs & Co. CA raised its stake in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 12.0% during the third quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 305,927 shares of the restaurant operator's stock after purchasing an additional 32,872 shares during the quarter. Jacobs & Co. CA's holdings in Chipotle Mexican Grill were worth $9,774,000 at the end of the most recent quarter.

Several other institutional investors also recently made changes to their positions in CMG. BlackRock Inc. purchased a new position in Chipotle Mexican Grill in the second quarter valued at approximately $4,417,475,000. Bank of America Corp DE purchased a new stake in Chipotle Mexican Grill during the second quarter worth approximately $383,483,000. Legal & General Group Plc purchased a new stake in Chipotle Mexican Grill during the second quarter worth approximately $265,887,000. Man Group plc acquired a new stake in shares of Chipotle Mexican Grill in the second quarter worth $240,389,000. Finally, Bank of New York Mellon Corp purchased a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at $222,809,000. 91.30% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms recently weighed in on CMG. Weiss Ratings upgraded shares of Chipotle Mexican Grill from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, August 7th. Bank of America reissued a "buy" rating and issued a $53.00 price objective (up from $50.00) on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. 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. Stephens reaffirmed a "positive" rating and issued a $40.00 target price (up from $36.00) on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Finally, DA Davidson increased their target price on Chipotle Mexican Grill from $45.00 to $50.00 and gave the company a "buy" rating in a research note on Thursday, July 30th. Twenty-three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $43.91.

More Chipotle Mexican Grill News

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

• Positive Sentiment: Starbucks has reportedly worked with advisers on a potential acquisition of Chipotle, a transaction that could value the burrito chain at roughly $39 billion to $41 billion. A formal bid could provide CMG shareholders with a takeover premium and support the stock’s valuation. The report is particularly notable because Starbucks CEO Brian Niccol previously led Chipotle. Why a Starbucks takeover of Chipotle would — and wouldn't — make sense for both companies
• Positive Sentiment: CMG shares initially rallied sharply on the takeover reports, reflecting expectations that Starbucks could offer a meaningful premium. However, the absence of a confirmed proposal means the gains remain largely speculation-driven. Chipotle Stocks Rallies on Report Starbucks Might Buy the Burrito Chain
• Neutral Sentiment: Chipotle’s upcoming third-quarter earnings report is another near-term catalyst. Analysts currently expect earnings per share to be roughly unchanged from the prior year, suggesting the stock may need solid sales, restaurant-opening and margin commentary to sustain investor interest. Earnings Preview: What to Expect From Chipotle Mexican Grill’s Report
• Negative Sentiment: Investors are increasingly focused on the risks of a potential transaction, including Starbucks’ financing burden, integration challenges and the possibility that the deal could distract management from its own turnaround. Those concerns, combined with profit-taking after the initial takeover-driven rally and the lack of a firm offer, help explain why CMG has since decreased. Starbucks Explores CMG Deal: Smart Move or Costly Gamble?

Chipotle Mexican Grill Price Performance

Shares of CMG stock opened at $31.64 on Friday. The company's fifty day moving average price is $34.38 and its two-hundred day moving average price is $33.53. The firm has a market capitalization of $40.03 billion, a P/E ratio of 29.02, a P/E/G ratio of 2.00 and a beta of 0.96. Chipotle Mexican Grill, Inc. has a 12 month low of $28.03 and a 12 month high of $42.81.

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 company had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period last year, the firm earned $0.33 earnings per share. The company's revenue was up 9.3% on a year-over-year basis. On average, sell-side analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current year.

Insider Transactions at Chipotle Mexican Grill

In other Chipotle Mexican Grill news, insider Matthew R. Bush sold 2,675 shares of Chipotle Mexican Grill stock in a transaction that occurred 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 in the company, valued at $765,586.25. The trade was a 11.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.45% of the stock is owned by corporate insiders.

Chipotle Mexican Grill 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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