BlackRock Inc. Invests $4.42 Billion in Chipotle Mexican Grill, Inc. $CMG

Key Points

• BlackRock acquired a new $4.42 billion stake in Chipotle Mexican Grill, purchasing 129.9 million shares and owning approximately 10.27% of the company.
• Institutional ownership remains substantial, with hedge funds and other institutional investors holding 91.30% of Chipotle’s shares. Vanguard, Capital World Investors and T. Rowe Price were among major holders that increased their positions.
• Chipotle reported quarterly earnings of $0.33 per share and revenue of $3.35 billion, slightly exceeding estimates, while analysts maintained a “Moderate Buy” consensus with an average price target of $44.16.

BlackRock Inc. purchased a new stake in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund purchased 129,925,735 shares of the restaurant operator's stock, valued at approximately $4,417,475,000. BlackRock Inc. owned approximately 10.27% of Chipotle Mexican Grill as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently modified their holdings of CMG. Vanguard Group Inc. increased its holdings in 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 period. Capital World Investors lifted its holdings in 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 worth $3,762,457,000 after buying an additional 13,843,222 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in 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 worth $2,162,572,000 after buying an additional 9,237,720 shares during the period. Capital International Investors increased its holdings in shares of Chipotle Mexican Grill by 17.7% in the 4th 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 during the period. Finally, Norges Bank purchased a new position in shares of Chipotle Mexican Grill in the 4th quarter valued at $711,837,000. Hedge funds and other institutional investors own 91.30% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on CMG shares. Citigroup decreased their price objective on Chipotle Mexican Grill from $46.00 to $45.00 and set a "buy" rating for the company in a research note on Monday, July 13th. UBS Group reiterated a "buy" rating on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Stephens reiterated a "positive" rating and issued a $40.00 target price (up from $36.00) on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Raymond James Financial reiterated an "outperform" rating and issued a $42.50 target price on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Finally, Argus increased their price target on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the company a "buy" rating in a research report on Tuesday, August 4th. Twenty-four equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $44.16.

Chipotle Mexican Grill Trading Down 1.2%

NYSE CMG opened at $33.36 on Wednesday. Chipotle Mexican Grill, Inc. has a 12-month low of $28.03 and a 12-month high of $43.99. The company has a fifty day simple moving average of $33.55 and a two-hundred day simple moving average of $34.03. The stock has a market cap of $42.22 billion, a P/E ratio of 30.61, a P/E/G ratio of 2.13 and a beta of 0.94.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, topping 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 return on equity of 54.65% and a net margin of 11.43%.The firm's revenue was up 9.3% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.33 EPS. As a group, sell-side analysts forecast that Chipotle Mexican Grill, Inc. will post 1.14 earnings per share for the current year.

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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