Waycross Partners LLC Makes New Investment in Chipotle Mexican Grill, Inc. $CMG

Key Points

• Waycross Partners initiated a position in Chipotle during the third quarter, buying 33,584 shares valued at approximately $1.07 million. Institutional investors and hedge funds own 91.3% of the stock.
• Chipotle reported quarterly earnings of $0.27 per share, below analysts’ $0.29 estimate, while revenue of $3.29 billion matched expectations and rose 9.6% year over year.
• Analysts’ consensus rating was “Moderate Buy,” with an average price target of $42.36; the shares were trading at $34.38 in the article.

Waycross Partners LLC bought a new position in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG - Free Report) during the 3rd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 33,584 shares of the restaurant operator's stock, valued at approximately $1,073,000.

A number of other large investors have also bought and sold shares of CMG. Osbon Capital Management LLC bought a new position in shares of Chipotle Mexican Grill during the 2nd quarter worth about $26,000. Heritage Family Offices LLP acquired a new stake in shares of Chipotle Mexican Grill in the 3rd quarter valued at about $26,000. Meeder Asset Management Inc. bought a new stake in Chipotle Mexican Grill in the 2nd quarter valued at about $27,000. Kelleher Financial Advisors bought a new stake in Chipotle Mexican Grill in the 2nd quarter valued at about $28,000. Finally, Rule One Partners LLC bought a new stake in Chipotle Mexican Grill in the 1st quarter valued at about $32,000. 91.30% of the stock is currently owned by institutional investors and hedge funds.

Insiders Place Their Bets

In other Chipotle Mexican Grill news, insider Matthew R. Bush sold 2,675 shares of the stock in a transaction that occurred on 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 $765,586.25. This represents a 11.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Company insiders own 0.45% of the company's stock.

Chipotle Mexican Grill Price Performance

Shares of CMG traded down $1.02 during trading hours on Friday, hitting $34.38. The company's stock had a trading volume of 15,574,947 shares, compared to its average volume of 24,793,146. The company has a market cap of $43.49 billion, a price-to-earnings ratio of 32.13, a PEG ratio of 2.17 and a beta of 1.00. The business has a 50 day simple moving average of $32.75 and a two-hundred day simple moving average of $33.98. Chipotle Mexican Grill, Inc. has a 52-week low of $27.31 and a 52-week high of $41.42.

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

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on CMG. Morgan Stanley upped their target price on Chipotle Mexican Grill from $39.00 to $40.00 and gave the stock an "equal weight" rating in a research report on Thursday, October 15th. Evercore reissued an "outperform" rating and issued a $47.00 price target (up from $45.00) on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. BNP Paribas Exane decreased their price target on shares of Chipotle Mexican Grill from $39.00 to $36.00 and set a "neutral" rating for the company in a research note on Thursday, October 29th. Guggenheim restated a "neutral" rating and set a $32.00 price objective (down from $36.00) on shares of Chipotle Mexican Grill in a report on Thursday, October 29th. Finally, Bank of America reaffirmed a "buy" rating and issued a $53.00 price objective (up from $50.00) on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. Twenty-seven investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $42.36.

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 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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