Farther Finance Advisors LLC Purchases 180,035 Shares of Chipotle Mexican Grill, Inc. $CMG

Key Points

• Farther Finance Advisors increased its Chipotle stake by 705.3%, purchasing 180,035 additional shares to hold 205,561 shares valued at approximately $6.57 million.
• Institutional investors own 91.3% of Chipotle’s stock, while shares recently traded at $31.64, down 3.2%. The company reported quarterly revenue of $3.35 billion and EPS of $0.33, slightly exceeding analyst expectations.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $43.91. Meanwhile, speculation about a potential Starbucks acquisition has supported the stock but also introduced uncertainty because no formal bid has been made.

Farther Finance Advisors LLC grew its position in Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 705.3% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 205,561 shares of the restaurant operator's stock after purchasing an additional 180,035 shares during the period. Farther Finance Advisors LLC's holdings in Chipotle Mexican Grill were worth $6,568,000 at the end of the most recent reporting period.

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

Chipotle Mexican Grill Trading Down 3.2%

Shares of NYSE CMG opened at $31.64 on Friday. The stock has a market capitalization of $40.03 billion, a price-to-earnings ratio of 29.02, a P/E/G ratio of 1.93 and a beta of 0.96. Chipotle Mexican Grill, Inc. has a 12-month low of $28.03 and a 12-month high of $42.81. The firm's 50-day moving average price is $34.38 and its 200-day moving average price is $33.53.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.01. The business had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The firm's quarterly revenue was up 9.3% compared to the same quarter last year. During the same quarter last year, the firm earned $0.33 earnings per share. On average, equities analysts predict that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current fiscal year.

Chipotle Mexican Grill News Summary

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

• Positive Sentiment: Starbucks has reportedly worked with advisers on a potential acquisition of Chipotle, a transaction that could value the burrito chain at roughly $39 billion to $41 billion. A formal bid could provide CMG shareholders with a takeover premium and support the stock’s valuation. The report is particularly notable because Starbucks CEO Brian Niccol previously led Chipotle. Why a Starbucks takeover of Chipotle would — and wouldn't — make sense for both companies
• Positive Sentiment: CMG shares initially rallied sharply on the takeover reports, reflecting expectations that Starbucks could offer a meaningful premium. However, the absence of a confirmed proposal means the gains remain largely speculation-driven. Chipotle Stocks Rallies on Report Starbucks Might Buy the Burrito Chain
• Neutral Sentiment: Chipotle’s upcoming third-quarter earnings report is another near-term catalyst. Analysts currently expect earnings per share to be roughly unchanged from the prior year, suggesting the stock may need solid sales, restaurant-opening and margin commentary to sustain investor interest. Earnings Preview: What to Expect From Chipotle Mexican Grill’s Report
• Negative Sentiment: Investors are increasingly focused on the risks of a potential transaction, including Starbucks’ financing burden, integration challenges and the possibility that the deal could distract management from its own turnaround. Those concerns, combined with profit-taking after the initial takeover-driven rally and the lack of a firm offer, help explain why CMG has since decreased. Starbucks Explores CMG Deal: Smart Move or Costly Gamble?

Insider Buying and Selling at Chipotle Mexican Grill

In other news, insider Matthew R. Bush sold 2,675 shares of the firm's stock in a transaction dated Friday, August 21st. The shares were sold at an average price of $35.75, for a total value of $95,631.25. Following the sale, the insider directly owned 21,415 shares in the company, valued at approximately $765,586.25. This trade represents a 11.10% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.45% of the stock is owned by company insiders.

Analysts Set New Price Targets

A number of research firms have recently commented on CMG. DA Davidson lifted their target price on Chipotle Mexican Grill from $45.00 to $50.00 and gave the stock a "buy" rating in a research note on Thursday, July 30th. Mizuho restated an "outperform" rating and set a $43.00 price target on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. UBS Group restated a "buy" rating on shares of Chipotle Mexican Grill in a research report on Friday. Seaport Research Partners began coverage on shares of Chipotle Mexican Grill in a report on Wednesday, September 16th. They set a "neutral" rating for the company. Finally, BTIG Research restated a "buy" rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a report on Wednesday, August 5th. Twenty-three investment analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $43.91.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that specializes in Mexican-inspired food made with a limited number of core ingredients. Its menu includes burritos, burrito bowls, tacos, quesadillas, salads and sides, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company also offers beverages, including soft drinks and other drinks, and allows customers to customize meals.

Founded by Steve Ells in 1993, Chipotle operates company-owned restaurants under the Chipotle Mexican Grill brand.

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