Traders Purchase High Volume of Call Options on Chipotle Mexican Grill (NYSE:CMG)

Key Points

• Chipotle call-option activity surged: Investors purchased 72,766 call options, about 51% above the average daily volume of 48,238, signaling heightened bullish trading interest.
• Institutional ownership remains high: Several hedge funds and institutional investors increased their CMG positions during the second quarter, with institutions collectively owning 91.3% of the stock.
• Analysts remain generally positive despite recent weakness: Chipotle shares traded at $31.79, below their 50- and 200-day moving averages, while analysts maintained a “Moderate Buy” consensus and an average price target of $43.84.

Chipotle Mexican Grill, Inc. (NYSE:CMG - Get Free Report) was the recipient of some unusual options trading on Monday. Investors bought 72,766 call options on the company. This is an increase of approximately 51% compared to the average daily volume of 48,238 call options.

Insider Buying and Selling

In related news, insider Matthew R. Bush sold 2,675 shares of Chipotle Mexican Grill stock in a transaction 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 completion of the sale, the insider owned 21,415 shares of the company's stock, valued at approximately $765,586.25. This trade represents a 11.10% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 0.45% of the company's stock.

Hedge Funds Weigh In On Chipotle Mexican Grill

A number of institutional investors and hedge funds have recently added to or reduced their stakes in CMG. QRG Capital Management Inc. raised its position in shares of Chipotle Mexican Grill by 317.8% in the second quarter. QRG Capital Management Inc. now owns 498,275 shares of the restaurant operator's stock valued at $16,941,000 after purchasing an additional 379,020 shares during the period. Envestnet Portfolio Solutions Inc. boosted its holdings in shares of Chipotle Mexican Grill by 623.0% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 200,958 shares of the restaurant operator's stock worth $6,833,000 after acquiring an additional 173,163 shares during the period. Sequoia Financial Advisors LLC grew its position in shares of Chipotle Mexican Grill by 2.2% in the second quarter. Sequoia Financial Advisors LLC now owns 50,929 shares of the restaurant operator's stock valued at $1,732,000 after purchasing an additional 1,104 shares in the last quarter. National Pension Service raised its stake in shares of Chipotle Mexican Grill by 9.4% during the 2nd quarter. National Pension Service now owns 2,312,845 shares of the restaurant operator's stock valued at $78,637,000 after purchasing an additional 198,749 shares during the period. Finally, Engineers Gate Manager LP lifted its holdings in Chipotle Mexican Grill by 833.5% during the 2nd quarter. Engineers Gate Manager LP now owns 723,446 shares of the restaurant operator's stock worth $24,597,000 after purchasing an additional 645,944 shares in the last quarter. Institutional investors own 91.30% of the company's stock.

Chipotle Mexican Grill Price Performance

Shares of Chipotle Mexican Grill stock traded up $0.46 on Monday, reaching $31.79. 31,418,635 shares of the company traded hands, compared to its average volume of 17,429,537. The company has a 50 day moving average of $34.83 and a 200 day moving average of $33.66. Chipotle Mexican Grill has a 52 week low of $28.03 and a 52 week high of $42.81. The firm has a market capitalization of $40.23 billion, a PE ratio of 29.17, a PEG ratio of 1.92 and a beta of 0.94.

Chipotle Mexican Grill (NYSE:CMG - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The restaurant operator reported $0.33 EPS for the quarter, beating 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 business had revenue of $3.35 billion for the quarter, compared to the consensus estimate of $3.33 billion. During the same quarter in the prior year, the business earned $0.33 earnings per share. Chipotle Mexican Grill's revenue for the quarter was up 9.3% on a year-over-year basis. As a group, analysts anticipate that Chipotle Mexican Grill will post 1.15 earnings per share for the current year.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Citigroup reduced their price objective on shares of Chipotle Mexican Grill from $46.00 to $45.00 and set a "buy" rating for the company in a report on Monday, July 13th. Argus upped their target price on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the stock a "buy" rating in a report on Tuesday, August 4th. TD Cowen reaffirmed a "buy" rating and issued a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Mizuho reiterated an "outperform" rating and set a $43.00 price target on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. Finally, Sanford C. Bernstein reissued an "outperform" rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Twenty-three research analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat.com, Chipotle Mexican Grill presently has an average rating of "Moderate Buy" and an average target price of $43.84.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc is a fast-casual restaurant company that operates restaurants under the Chipotle Mexican Grill brand. Its menu centers on customizable Mexican-inspired food, including burritos, bowls, tacos and salads, along with sides, beverages and children's meals.

The company emphasizes cooking with responsibly sourced ingredients and preparing food in its restaurants. Customers can order meals in person, through digital ordering channels, for pickup or delivery. Chipotle serves customers primarily in the United States, with additional restaurants in Canada, the United Kingdom, France and Germany.

Chipotle was founded in 1993 by Steve Ells in Denver, Colorado.

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