Chipotle Mexican Grill, Inc. $CMG Position Raised by Kera Capital Partners Inc.

Key Points

• Kera Capital Partners increased its Chipotle stake by 13.4% in the first quarter, buying 29,419 more shares and bringing its total to 249,227 shares valued at about $7.98 million.
• Institutional ownership remains very high, with other funds also adding to positions; the article says 91.30% of Chipotle’s stock is owned by institutional investors.
• Chipotle’s recent headlines were mostly positive, including its first restaurant opening in Mexico and reassurance that it was not affected by the lettuce-linked cyclosporiasis outbreak affecting some Taco Bell locations.

Kera Capital Partners Inc. boosted its position in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 13.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 249,227 shares of the restaurant operator's stock after purchasing an additional 29,419 shares during the period. Chipotle Mexican Grill makes up about 1.0% of Kera Capital Partners Inc.'s portfolio, making the stock its 24th largest holding. Kera Capital Partners Inc.'s holdings in Chipotle Mexican Grill were worth $7,978,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Townsend Asset Management Corp NC ADV boosted its stake in Chipotle Mexican Grill by 41.8% during the first quarter. Townsend Asset Management Corp NC ADV now owns 20,110 shares of the restaurant operator's stock valued at $644,000 after buying an additional 5,925 shares in the last quarter. Assetmark Inc. raised its position in Chipotle Mexican Grill by 63.2% in the first quarter. Assetmark Inc. now owns 558,547 shares of the restaurant operator's stock worth $17,879,000 after acquiring an additional 216,277 shares in the last quarter. Independent Financial Group LLC bought a new stake in Chipotle Mexican Grill in the first quarter worth about $813,000. Aware Super Pty Ltd as trustee of Aware Super bought a new stake in Chipotle Mexican Grill in the first quarter worth about $9,059,000. Finally, D.A. Davidson & CO. lifted its holdings in Chipotle Mexican Grill by 2.4% in the 1st quarter. D.A. Davidson & CO. now owns 89,544 shares of the restaurant operator's stock valued at $2,866,000 after acquiring an additional 2,130 shares during the last quarter. 91.30% of the stock is owned by institutional investors.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Chipotle and Wendy’s said their restaurants were not affected by the cyclosporiasis outbreak linked to lettuce at some Taco Bell locations, easing fears that the issue would spread to other fast-casual chains. Reuters article on cyclosporiasis outbreak
• Positive Sentiment: Chipotle opened its first restaurant in Mexico, a long-awaited international debut that could expand the brand’s growth runway and support sentiment around future store growth. Reuters article on Mexico debut
• Neutral Sentiment: Several analysts and market commentary pieces framed CMG as having improving traffic and rewards growth, but also noted that valuation and margin pressure remain key debates for the stock. Yahoo Finance comparison article
• Neutral Sentiment: Some commentary said Chipotle still looks fully priced after its recent decline, suggesting valuation may limit upside even after the recent rebound. Yahoo Finance valuation article
• Negative Sentiment: At least one market update said Chipotle underperformed peers on Thursday, reinforcing that the stock has been volatile and is still recovering from a sharp year-to-date slide. MarketWatch underperformance article

Chipotle Mexican Grill Stock Up 0.8%

NYSE:CMG opened at $34.47 on Friday. Chipotle Mexican Grill, Inc. has a 1-year low of $28.03 and a 1-year high of $54.29. The firm has a market capitalization of $44.22 billion, a price-to-earnings ratio of 31.63, a price-to-earnings-growth ratio of 2.21 and a beta of 0.97. The stock has a fifty day simple moving average of $32.60 and a 200 day simple moving average of $34.90.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its quarterly earnings data on Wednesday, April 29th. The restaurant operator reported $0.24 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.24. Chipotle Mexican Grill had a return on equity of 49.64% and a net margin of 11.96%.The firm had revenue of $3.09 billion for the quarter, compared to the consensus estimate of $3.07 billion. During the same quarter in the previous year, the company earned $0.29 EPS. The business's revenue for the quarter was up 7.4% compared to the same quarter last year. Equities analysts predict that Chipotle Mexican Grill, Inc. will post 1.13 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on CMG shares. JPMorgan Chase & Co. upgraded shares of Chipotle Mexican Grill from a "neutral" rating to an "overweight" rating and reduced their price objective for the company from $38.00 to $35.00 in a research report on Friday, June 5th. BNP Paribas Exane boosted their target price on shares of Chipotle Mexican Grill from $37.00 to $39.00 and gave the stock a "neutral" rating in a report on Thursday, April 30th. Morgan Stanley set a $37.00 target price on shares of Chipotle Mexican Grill and gave the company an "equal weight" rating in a research note on Wednesday, June 3rd. Argus upgraded shares of Chipotle Mexican Grill from a "hold" rating to a "buy" rating and set a $40.00 target price for the company in a report on Tuesday, May 5th. Finally, TD Cowen restated a "buy" rating and issued a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, April 30th. Twenty-three investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $43.86.

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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