Chipotle Mexican Grill (NYSE:CMG) Stock Sees Unusually High Put Option Buying

Key Points

• Put-option activity more than doubled: Traders bought 101,720 Chipotle put options, versus a typical daily volume of 49,326, a 106% increase.
• Chipotle shares fell $1.44 to $30.92, while the company’s latest quarterly results slightly exceeded expectations with adjusted EPS of $0.33 and revenue of $3.35 billion, up 9.3% year over year.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $43.91, compared with the stock’s current price.

Chipotle Mexican Grill, Inc. (NYSE:CMG - Get Free Report) was the target of unusually large options trading activity on Monday. Stock traders acquired 101,720 put options on the company. This is an increase of 106% compared to the typical daily volume of 49,326 put options.

Chipotle Mexican Grill Price Performance

CMG traded down $1.44 during trading hours on Monday, reaching $30.92. The company's stock had a trading volume of 9,761,199 shares, compared to its average volume of 17,325,930. Chipotle Mexican Grill has a fifty-two week low of $28.03 and a fifty-two week high of $42.81. The stock has a market cap of $39.12 billion, a PE ratio of 28.40, a P/E/G ratio of 1.98 and a beta of 0.96. The business's 50-day moving average is $34.79 and its 200-day moving average is $33.61.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its earnings results 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. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%.The company had revenue of $3.35 billion during the quarter, compared to analysts' expectations of $3.33 billion. During the same quarter last year, the firm earned $0.33 earnings per share. The firm's quarterly revenue was up 9.3% compared to the same quarter last year. Analysts expect that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Argus lifted their price objective on Chipotle Mexican Grill from $40.00 to $45.00 and gave the stock a "buy" rating in a research report on Tuesday, August 4th. Sanford C. Bernstein restated an "outperform" rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Piper Sandler cut their target price on Chipotle Mexican Grill from $42.00 to $39.00 and set an "overweight" rating for the company in a research note on Thursday, July 30th. BTIG Research reaffirmed a "buy" rating and issued a $45.00 target price on shares of Chipotle Mexican Grill in a research note on Wednesday, August 5th. Finally, DA Davidson lifted their price target on Chipotle Mexican Grill from $45.00 to $50.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Twenty-three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, Chipotle Mexican Grill currently has a consensus rating of "Moderate Buy" and a consensus target price of $43.91.

Insider Buying and Selling at Chipotle Mexican Grill

In other news, insider Matthew R. Bush sold 2,675 shares of the company's 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 completion of 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.45% of the stock is currently owned by corporate insiders.

Institutional Trading of Chipotle Mexican Grill

A number of hedge funds and other institutional investors have recently modified their holdings of the business. MV Capital Management Inc. purchased a new position in Chipotle Mexican Grill during the fourth quarter worth about $26,000. Osbon Capital Management LLC acquired a new stake in shares of Chipotle Mexican Grill during the fourth quarter valued at about $28,000. Meeder Asset Management Inc. purchased a new stake in shares of Chipotle Mexican Grill in the 2nd quarter valued at approximately $27,000. Kelleher Financial Advisors purchased a new stake in shares of Chipotle Mexican Grill in the 2nd quarter valued at approximately $28,000. Finally, Merkkuri Wealth Advisors LLC acquired a new position in shares of Chipotle Mexican Grill in the 1st quarter worth approximately $28,000. 91.30% of the stock is owned by institutional investors and hedge funds.

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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