Chipotle Mexican Grill, Inc. $CMG Shares Bought by Kornitzer Capital Management Inc. KS

Key Points

• Kornitzer Capital Management increased its Chipotle stake by 1,058.7% in the third quarter, adding 140,699 shares to reach 153,989 shares valued at about $4.92 million.
• Analysts hold a consensus “Moderate Buy” rating, with an average price target of $42.36; 27 analysts rate the stock Buy and nine rate it Hold.
• Chipotle reported quarterly revenue of $3.29 billion, up 9.6% year over year, but earnings per share of $0.27 missed the $0.29 estimate. Higher operating costs are pressuring restaurant-level margins.

Kornitzer Capital Management Inc. KS lifted its stake in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 1,058.7% in the third quarter, according to the company in its most recent filing with the SEC. The fund owned 153,989 shares of the restaurant operator's stock after buying an additional 140,699 shares during the quarter. Kornitzer Capital Management Inc. KS's holdings in Chipotle Mexican Grill were worth $4,920,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also modified their holdings of CMG. BlackRock Inc. bought a new stake in shares of Chipotle Mexican Grill in the second quarter valued at approximately $4,417,475,000. Bank of America Corp DE bought a new position in Chipotle Mexican Grill during the 2nd quarter worth $383,483,000. Legal & General Group Plc bought a new position in Chipotle Mexican Grill during the 2nd quarter worth $265,887,000. Man Group plc bought a new position in Chipotle Mexican Grill during the 2nd quarter worth $240,389,000. Finally, Bank of New York Mellon Corp acquired a new position in Chipotle Mexican Grill in the 2nd quarter valued at $222,809,000. Institutional investors own 91.30% of the company's stock.

Analysts Set New Price Targets

Several analysts have recently issued reports on CMG shares. TD Cowen reissued a "hold" rating and set a $32.00 target price on shares of Chipotle Mexican Grill in a report on Thursday, October 29th. Sanford C. Bernstein restated an "outperform" rating and issued a $43.00 price target (down from $50.00) on shares of Chipotle Mexican Grill in a research report on Thursday, October 29th. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Chipotle Mexican Grill in a research note on Wednesday. Piper Sandler cut their price objective on shares of Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Finally, Bank of America reaffirmed a "buy" rating and set a $53.00 price objective (up from $50.00) on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. Twenty-seven research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, Chipotle Mexican Grill currently has an average rating of "Moderate Buy" and an average price target of $42.36.

Insider Activity at Chipotle Mexican Grill

In related news, insider Matthew R. Bush sold 2,675 shares of Chipotle Mexican Grill stock in a transaction that occurred 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 transaction, the insider directly owned 21,415 shares of the company's stock, valued at $765,586.25. The trade was a 11.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.45% of the stock is currently owned by corporate insiders.

Chipotle Mexican Grill Stock Down 0.1%

Shares of CMG opened at $34.38 on Monday. Chipotle Mexican Grill, Inc. has a 12-month low of $27.31 and a 12-month high of $41.42. The business has a 50-day simple moving average of $32.75 and a two-hundred day simple moving average of $33.98. The stock has a market cap of $43.49 billion, a PE ratio of 32.13, a PEG ratio of 2.27 and a beta of 1.00.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its earnings results on Wednesday, October 28th. The restaurant operator reported $0.27 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.02). The business had revenue of $3.29 billion for the quarter, compared to analyst estimates of $3.29 billion. Chipotle Mexican Grill had a return on equity of 57.05% and a net margin of 10.83%. The firm's quarterly revenue was up 9.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.29 earnings per share. On average, equities research analysts expect that Chipotle Mexican Grill, Inc. will post 1.10 EPS for the current year.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Third-quarter revenue growth, positive comparable-sales trends and new restaurant openings supported expansion. Chipotle also recorded its third consecutive quarter of comparable-store sales growth. Can Chipotle's Sales Growth Offset Lower Restaurant-Level Margins? Should Investors Buy Into the Chipotle Turnaround?
• Neutral Sentiment: Chipotle is bringing back its popular smoked brisket in an effort to attract traffic, though the news does not establish how much it will boost sales. Chipotle looks to drive traffic with the return of its popular smoked brisket
• Negative Sentiment: Restaurant-level margins are under pressure from higher operating costs, while weaker sales trends toward quarter-end raise questions about whether revenue growth can offset the squeeze on profitability. Can Chipotle's Sales Growth Offset Lower Restaurant-Level Margins?
• Negative Sentiment: An analyst fair-value estimate fell about 5%, from $42.71 to $40.57. The more cautious view reflects food-safety headlines, mixed near-term growth drivers and concern that Chipotle’s long-term earnings potential may already be reflected in its valuation. Chipotle (CMG) Stock Sees Fair Value Cut As Analysts Turn More Cautious

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill is a fast-casual restaurant company that serves Mexican-inspired food, including burritos, bowls, tacos and salads. Customers can customize meals with ingredients such as rice, beans, meats, vegetables, salsas and guacamole.

Founded by Steve Ells in Denver, Colorado, in 1993, Chipotle built its business around preparing food in restaurant kitchens and emphasizing ingredients it describes as responsibly sourced. The company primarily operates its own restaurants, rather than relying on a franchise model.

Chipotle serves customers in the United States and select international markets, including Canada and the United Kingdom.

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