Assenagon Asset Management S.A. Has $195.47 Million Position in Chipotle Mexican Grill, Inc. $CMG

Key Points

• Assenagon Asset Management increased its Chipotle stake by 75.1% in the second quarter, acquiring 2.47 million additional shares and bringing its position to 5.75 million shares valued at $195.5 million. Institutional investors collectively own 91.3% of the company.
• Chipotle reported quarterly revenue of $3.35 billion and adjusted EPS of $0.33, slightly exceeding analyst expectations, with revenue up 9.3% year over year. Analysts maintain a “Moderate Buy” consensus rating and an average price target of $44.16.
• Shares opened at $33.72, while investors face risks from a multistate salmonella outbreak linked to jalapeños, potential brand and legal costs, and margin pressure from higher food and labor expenses.

Assenagon Asset Management S.A. increased its stake in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 75.1% in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 5,749,194 shares of the restaurant operator's stock after purchasing an additional 2,465,920 shares during the period. Assenagon Asset Management S.A. owned 0.45% of Chipotle Mexican Grill worth $195,473,000 as of its most recent SEC filing.

Several other institutional investors have also recently bought and sold shares of the stock. Norges Bank acquired a new stake in shares of Chipotle Mexican Grill in the 4th quarter valued at $711,837,000. Vanguard Group Inc. raised its position 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 worth $5,349,764,000 after acquiring an additional 18,660,882 shares during the last quarter. Capital World Investors lifted its stake 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 acquiring an additional 13,843,222 shares during the period. Clearbridge Investments LLC lifted its stake in shares of Chipotle Mexican Grill by 206.4% during the fourth quarter. Clearbridge Investments LLC now owns 14,062,158 shares of the restaurant operator's stock valued at $520,300,000 after acquiring an additional 9,473,120 shares during the period. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Chipotle Mexican Grill by 18.8% in 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 acquiring an additional 9,237,720 shares during the last quarter. Institutional investors own 91.30% of the company's stock.

Analyst Upgrades and Downgrades

CMG has been the subject of a number of research reports. UBS Group reiterated a "buy" rating on shares of Chipotle Mexican Grill in a research report on Friday, July 31st. Evercore restated an "outperform" rating and set a $47.00 target price on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Citigroup reduced their target price on shares of Chipotle Mexican Grill from $46.00 to $45.00 and set a "buy" rating on the stock in a research note on Monday, July 13th. Mizuho lifted their price target on shares of Chipotle Mexican Grill from $40.00 to $41.00 and gave the stock an "outperform" rating in a research report on Monday, July 13th. Finally, Argus lifted their price target on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the stock a "buy" rating in a research report on Tuesday. Twenty-four investment analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Chipotle Mexican Grill currently has an average rating of "Moderate Buy" and a consensus price target of $44.16.

Key Stories Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Analyst support remains intact. BTIG reaffirmed its “buy” rating with a $45 price target, while Argus also raised its target to $45, indicating analysts see substantial long-term upside if the outbreak is contained. BTIG rating update Argus price target update
• Positive Sentiment: Chipotle recently reported a quarterly earnings and revenue beat, with comparable sales returning to growth, supported by new menu items and a revamped rewards program. Chipotle quarterly performance analysis
• Neutral Sentiment: Chipotle removed jalapeños from affected Minnesota restaurants, switched to an alternative supplier and is cooperating with health authorities. Management said its previously issued annual targets do not include any financial impact from the outbreak, leaving potential revisions uncertain. Chipotle annual targets and outbreak
• Negative Sentiment: The CDC has linked the outbreak to jalapeños served at Chipotle and other restaurants across 27 states. Reports of hundreds of illnesses are increasing concerns about potential legal costs, restaurant disruption, supplier scrutiny and damage to the brand’s food-safety reputation. Salmonella outbreak linked to Mexican jalapeños Chipotle stock and Salmonella outbreak
• Negative Sentiment: Investors are also questioning Chipotle’s valuation because higher food and labor costs have compressed restaurant-level margins and reduced net income and EPS, despite sales growth. A premium earnings multiple leaves less room for execution or reputational setbacks. Chipotle valuation and margin analysis

Chipotle Mexican Grill Stock Down 2.3%

Shares of Chipotle Mexican Grill stock opened at $33.72 on Friday. Chipotle Mexican Grill, Inc. has a 12 month low of $28.03 and a 12 month high of $44.27. The business has a fifty day simple moving average of $33.04 and a 200 day simple moving average of $34.43. The stock has a market cap of $42.67 billion, a PE ratio of 30.94, a price-to-earnings-growth ratio of 2.20 and a beta of 0.94.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, beating analysts' consensus estimates 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 business had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter in the prior year, the company posted $0.33 earnings per share. The firm's revenue was up 9.3% on a year-over-year basis. Analysts expect that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current fiscal year.

Chipotle Mexican Grill 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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