Bank of Nova Scotia Makes New $50.70 Million Investment in Chipotle Mexican Grill, Inc. $CMG

Key Points

• Bank of Nova Scotia acquired 1.49 million Chipotle shares in the second quarter, valued at approximately $50.7 million and representing about 0.12% of the company.
• Institutional ownership remains high at 91.3%, with major investors including Vanguard, BlackRock, Capital World Investors, and T. Rowe Price holding or increasing sizable positions.
• Chipotle exceeded quarterly earnings and revenue expectations, while analysts maintained a generally positive outlook: 24 rated the stock a Buy and nine a Hold, producing a “Moderate Buy” consensus and an average price target of $44.16.

Bank of Nova Scotia bought a new position in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor bought 1,491,085 shares of the restaurant operator's stock, valued at approximately $50,697,000. Bank of Nova Scotia owned approximately 0.12% of Chipotle Mexican Grill at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in Chipotle Mexican Grill by 14.8% in 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 acquiring an additional 18,660,882 shares in the last quarter. BlackRock Inc. purchased a new stake in shares of Chipotle Mexican Grill in the 2nd quarter worth approximately $4,417,475,000. Capital World Investors increased 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 acquiring an additional 13,843,222 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in Chipotle Mexican Grill by 18.8% during the 4th 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 purchasing an additional 9,237,720 shares in the last quarter. Finally, Capital International Investors increased its position 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 acquiring an additional 6,796,285 shares in the last quarter. 91.30% of the stock is currently owned by hedge funds and other institutional investors.

Chipotle Mexican Grill Price Performance

CMG opened at $36.84 on Monday. The business's 50-day moving average is $33.80 and its two-hundred day moving average is $33.96. Chipotle Mexican Grill, Inc. has a 1 year low of $28.03 and a 1 year high of $43.72. The firm has a market capitalization of $46.62 billion, a PE ratio of 33.80, a price-to-earnings-growth ratio of 2.35 and a beta of 0.94.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, beating analysts' consensus estimates of $0.32 by $0.01. The company had revenue of $3.35 billion during the quarter, compared to analysts' expectations of $3.33 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. Chipotle Mexican Grill's revenue for the quarter was up 9.3% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.33 earnings per share. As a group, sell-side analysts expect that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Evercore reissued an "outperform" rating and set a $47.00 price objective on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. DA Davidson upped their price target 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. Mizuho upped their target price 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. Weiss Ratings raised Chipotle Mexican Grill from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, August 7th. Finally, UBS Group reissued a "buy" rating on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Twenty-four equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $44.16.

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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