Chipotle Mexican Grill Receives Positive Outlook from Wedbush

Chipotle Mexican Grill (NYSE:CMG) has recently had its "outperform" rating reaffirmed by analysts at Wedbush, according to a research note released on Wednesday. The analysts have set a price target of $69.00 for the restaurant chain's stock. This target indicates a potential upside of approximately 19.84% from the stock's current trading price.

In addition to Wedbush's report, Chipotle's stock has been analyzed by various other research firms. For instance, Stephens recently reiterated an "equal weight" rating with a $65.00 price target for the company. Similarly, Truist Financial raised its price target from $72.00 to $74.00 and has assigned a "buy" rating. Royal Bank of Canada increased their price objective from $70.00 to $75.00, while Loop Capital raised its forecast from $53.00 to $58.00, giving a "hold" rating. Lastly, Piper Sandler lifted their price target from $59.00 to $60.00 and designated a "neutral" rating. Currently, the consensus rating for Chipotle stands as a "Moderate Buy" with an average target price of $66.81 according to MarketBeat.com.

Current Stock Performance

The CMG stock opened at $57.58 on the day of the latest report. The company has a 50-day simple moving average of $60.72 and a 200-day simple moving average of $57.74. Chipotle’s stock has fluctuated between a 52-week low of $46.15 and a 52-week high of $69.26. With a market cap of $78.45 billion, Chipotle’s price-to-earnings (PE) ratio is currently at 53.59, and the price-to-earnings growth (PEG) ratio is at 1.89, accompanied by a beta of 1.27, indicating some level of volatility in relation to the broader market.

In its latest earnings report, released on October 29, Chipotle announced earnings per share (EPS) of $0.27 for the quarter, surpassing analysts’ expectations of $0.25 by $0.02. The company reported a return on equity of 43.20% along with a net margin of 13.51%. While the revenue for the quarter reached $2.79 billion, slightly below analysts’ forecasts of $2.82 billion, it represented a 13.0% increase compared to the same quarter the previous year. Analysts project an EPS of 1.11 for Chipotle for the current fiscal year.

Insider Transactions

Recently, insider Laurie Schalow sold 4,404 shares of Chipotle’s stock on December 10 at an average price of $65.01, generating proceeds of around $286,304.04. Following this transaction, Schalow retains ownership of 185,792 shares, which are valued at approximately $12,078,337.92. This sale indicates a 2.32% reduction in their total holdings. The total insider ownership accounts for about 1.02% of the company's stock.

Institutional Investment Activity

Institutional investors have shown increased interest in Chipotle recently. For example, Oliver Lagore Vanvalin Investment Group amplified its stake by an impressive 4,900.0% in the second quarter, bringing the total to 400 shares valued at $25,000. Similarly, ZRC Wealth Management LLC expanded its position by 384.0% to hold 484 shares worth $28,000. Transcendent Capital Group LLC also increased its holdings by 950.0% during the third quarter, now owning 525 shares valued at $30,000. Other investment firms are also making similar moves into Chipotle stock. Currently, institutional investors own approximately 91.31% of the company’s stock.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., along with its subsidiaries, operates and manages Chipotle Mexican Grill restaurants. The company specializes in food and beverage services, offering a menu that features burritos, burrito bowls, quesadillas, tacos, and salads. Moreover, Chipotle provides delivery services through its app and website, with operations extending across the United States, Canada, France, Germany, and the United Kingdom.

Chipotle, Stocks, Investment