Bank of America Corp DE Acquires New Holdings in Chipotle Mexican Grill, Inc. $CMG

Key Points

• Bank of America acquired 11.28 million Chipotle shares worth approximately $383.5 million in the second quarter, representing a 0.89% stake. Institutional investors collectively own 91.3% of the company.
• Chipotle slightly exceeded quarterly earnings and revenue expectations, reporting $0.33 EPS and $3.35 billion in revenue, with sales up 9.3% year over year.
• CMG shares were down 6.0% amid concerns about restaurant traffic, valuation and technical support, although analysts maintained a “Moderate Buy” consensus with an average price target of $43.84.

Bank of America Corp DE bought a new position in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) during the 2nd quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 11,278,915 shares of the restaurant operator's stock, valued at approximately $383,483,000. Bank of America Corp DE owned 0.89% of Chipotle Mexican Grill as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Groupama Asset Managment boosted its holdings in shares of Chipotle Mexican Grill by 1.9% in the fourth quarter. Groupama Asset Managment now owns 15,596 shares of the restaurant operator's stock valued at $568,000 after buying an additional 291 shares during the period. Citizens Financial Group Inc. RI lifted its position in Chipotle Mexican Grill by 2.5% in the 1st quarter. Citizens Financial Group Inc. RI now owns 12,708 shares of the restaurant operator's stock valued at $407,000 after acquiring an additional 311 shares in the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its stake in Chipotle Mexican Grill by 14.3% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 2,523 shares of the restaurant operator's stock worth $93,000 after purchasing an additional 316 shares during the period. CYBER HORNET ETFs LLC boosted its stake in Chipotle Mexican Grill by 8.9% in the 4th quarter. CYBER HORNET ETFs LLC now owns 3,942 shares of the restaurant operator's stock worth $146,000 after purchasing an additional 322 shares during the period. Finally, ANB Bank increased its holdings in Chipotle Mexican Grill by 5.8% during the 1st quarter. ANB Bank now owns 6,317 shares of the restaurant operator's stock worth $202,000 after purchasing an additional 349 shares in the last quarter. 91.30% of the stock is owned by institutional investors.

Chipotle Mexican Grill Stock Down 6.0%

CMG stock opened at $34.82 on Wednesday. The company has a market cap of $44.06 billion, a price-to-earnings ratio of 31.94, a P/E/G ratio of 2.27 and a beta of 0.94. Chipotle Mexican Grill, Inc. has a twelve month low of $28.03 and a twelve month high of $42.81. The business has a 50 day moving average price of $35.18 and a two-hundred day moving average price of $33.87.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last issued 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. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The company had revenue of $3.35 billion for the quarter, compared to analysts' expectations of $3.33 billion. During the same period in the prior year, the firm earned $0.33 EPS. Chipotle Mexican Grill's quarterly revenue was up 9.3% compared to the same quarter last year. On average, equities research analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.15 EPS for the current fiscal year.

Key Chipotle Mexican Grill News

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

• Positive Sentiment: Chipotle plans to open up to 370 new restaurants in 2026, supporting its long-term unit-growth strategy. The company also intends to place an apprentice in every restaurant by the end of 2027, strengthening its management pipeline as it expands. Chipotle Plans to Open up to 370 New Restaurants in 2026
• Positive Sentiment: Chipotle appointed Sabir Sami, former KFC Global CEO, to its expanded 11-member board. His international restaurant experience could help guide the company’s overseas growth, including its Seoul joint venture. Chipotle Appoints Sabir Sami to Its Board of Directors
• Neutral Sentiment: The stock’s decline was considerably larger than the broader market’s move, with reports attributing the weakness partly to profit-taking after an approximately 8% gain over the past 30 days. No confirmed new company-specific negative announcement was identified. Chipotle Registers a Bigger Fall Than the Market
• Negative Sentiment: A restaurant dining-traffic report pressured restaurant stocks, raising concerns about consumer demand and near-term comparable-sales performance for Chipotle. Chipotle Slides as Dining Traffic Report Hits Restaurant Stocks
• Negative Sentiment: Technically, CMG broke below its 20-day moving average and tested support around its 50-day and 200-day averages. A sustained break could encourage additional momentum-driven selling. Chipotle Stock Tests Critical Support
• Negative Sentiment: One analysis argued that Chipotle may be overvalued by roughly 30% as investors price in substantial benefits from its Seoul expansion. That creates sensitivity to execution risks and limits tolerance for disappointing growth. Chipotle Could Be Overvalued on Seoul Expansion Push

Insider Activity

In related 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 value of $95,631.25. Following the completion of 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 SEC, which is available through the SEC website. 0.45% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have issued reports on CMG. Citigroup dropped their price target on 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. DA Davidson increased their price objective on Chipotle Mexican Grill from $45.00 to $50.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Sanford C. Bernstein reiterated an "outperform" rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Morgan Stanley lifted their target price on Chipotle Mexican Grill from $37.00 to $39.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Finally, Argus boosted their target price on Chipotle Mexican Grill from $40.00 to $45.00 and gave the company a "buy" rating in a research note on Tuesday, August 4th. Twenty-three investment analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $43.84.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that operates restaurants under the Chipotle Mexican Grill brand. Its menu centers on customizable Mexican-inspired food, including burritos, bowls, tacos and salads, along with sides, beverages and children's meals.

The company emphasizes cooking with responsibly sourced ingredients and preparing food in its restaurants. Customers can order meals in person, through digital ordering channels, for pickup or delivery. Chipotle serves customers primarily in the United States, with additional restaurants in Canada, the United Kingdom, France and Germany.

Chipotle was founded in 1993 by Steve Ells in Denver, Colorado.

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