Freemont Management S.A. Sells 117,200 Shares of Chipotle Mexican Grill, Inc. $CMG

Key Points

• Freemont Management S.A. cut its Chipotle stake by 62.6% in the first quarter, selling 117,200 shares and ending with 70,000 shares valued at about $2.24 million.
• Chipotle’s recent headlines were broadly positive, including reassurance that it was not affected by the Taco Bell-linked cyclosporiasis outbreak and news that it opened its first restaurant in Mexico.
• Analysts remain mixed but generally constructive: the stock has a Moderate Buy consensus with a $43.86 target, while Chipotle also reported quarterly EPS in line with estimates and revenue slightly above expectations.

Freemont Management S.A. decreased its position in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) by 62.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 70,000 shares of the restaurant operator's stock after selling 117,200 shares during the period. Freemont Management S.A.'s holdings in Chipotle Mexican Grill were worth $2,241,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the company. Kera Capital Partners Inc. boosted its stake in Chipotle Mexican Grill by 13.4% during the 1st quarter. Kera Capital Partners Inc. now owns 249,227 shares of the restaurant operator's stock valued at $7,978,000 after purchasing an additional 29,419 shares during the period. Townsend Asset Management Corp NC ADV grew its holdings in Chipotle Mexican Grill by 41.8% in the 1st 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 during the last quarter. Assetmark Inc. increased its position in Chipotle Mexican Grill by 63.2% in the 1st quarter. Assetmark Inc. now owns 558,547 shares of the restaurant operator's stock worth $17,879,000 after buying an additional 216,277 shares during the period. Independent Financial Group LLC bought a new position in Chipotle Mexican Grill in the 1st quarter worth approximately $813,000. Finally, Aware Super Pty Ltd as trustee of Aware Super acquired a new position in shares of Chipotle Mexican Grill during the first quarter worth approximately $9,059,000. 91.30% of the stock is currently owned by institutional investors.

Key Stories 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

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the stock. Weiss Ratings upgraded shares of Chipotle Mexican Grill from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Thursday, June 25th. Guggenheim cut their target price on shares of Chipotle Mexican Grill from $36.00 to $35.00 and set a "neutral" rating for the company in a research note on Friday, May 1st. Stephens increased their price target on shares of Chipotle Mexican Grill from $38.00 to $39.00 and gave the company an "equal weight" rating in a report on Thursday, April 30th. Piper Sandler decreased their price target on shares of Chipotle Mexican Grill from $44.00 to $42.00 and set an "overweight" rating on the stock in a research report on Thursday, April 30th. Finally, Mizuho boosted their price objective on shares of Chipotle Mexican Grill from $40.00 to $41.00 and gave the stock an "outperform" rating in a report on Monday, July 13th. Twenty-three analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. Based on data from MarketBeat, Chipotle Mexican Grill has a consensus rating of "Moderate Buy" and a consensus target price of $43.86.

Chipotle Mexican Grill Trading Up 0.8%

Shares of 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 PE ratio of 31.63, a PEG ratio of 2.23 and a beta of 0.97. The business's 50 day moving average is $32.60 and its 200-day moving average is $34.90.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last issued its earnings results on Wednesday, April 29th. The restaurant operator reported $0.24 EPS for the quarter, meeting analysts' consensus estimates of $0.24. The business had revenue of $3.09 billion during the quarter, compared to analyst estimates of $3.07 billion. Chipotle Mexican Grill had a return on equity of 49.64% and a net margin of 11.96%.Chipotle Mexican Grill's revenue was up 7.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.29 earnings per share. On average, sell-side analysts predict that Chipotle Mexican Grill, Inc. will post 1.13 EPS for the current year.

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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