Chipotle Mexican Grill Receives Outperform Rating from Wedbush

Chipotle Mexican Grill (NYSE:CMG) is back in the spotlight as equities research analysts at Wedbush reaffirmed their "outperform" rating for the company's stock. In a report released to investors on Wednesday, they set a price target of $69.00 for Chipotle shares, indicating a potential upside of 23.81% from its most recent closing price.

A number of other financial analysts also released reports on Chipotle recently. TD Cowen raised their price target from $65.00 to $68.00, maintaining a "buy" rating. Similarly, Wells Fargo & Company adjusted their price objective from $66.00 to $67.00 with an "overweight" rating. Deutsche Bank also reiterated a "buy" rating and set a target price of $67.00 back on August 14. Evercore ISI had previously increased their target from $59.00 to $70.00, also giving an "outperform" rating. Meanwhile, Citigroup lowered their target from $71.00 to $70.00 while still rating the stock as "buy." Overall, 10 analysts have assigned a hold rating, while 18 have given it a buy rating. According to MarketBeat.com, the average rating for Chipotle stock is currently a "Moderate Buy" with an average price target of approximately $64.47.

Current Stock Trends

The stock faced a dip during midday trading on Wednesday, dropping $4.76 to hit $55.73. A total of 28,240,745 shares changed hands, significantly higher than its average volume of 13,972,897 shares. Chipotle has a market capitalization of around $76.32 billion and shows a price-to-earnings (PE) ratio of 54.64. The price-to-earnings-growth ratio stands at 2.41, and the stock has a beta of 1.25. Its 50-day and 200-day moving averages are reported at $57.10 and $81.50, respectively. Notably, Chipotle's one-year low was $38.01, while its high reached $69.26.

Recent Financial Performance

In its latest quarterly earnings report, released on October 29, Chipotle reported earnings per share (EPS) of $0.27. This exceeded analysts' consensus estimates of $0.25 by $0.02. The company’s revenue for the quarter was approximately $2.79 billion, slightly below the estimated $2.82 billion. The restaurant chain's net margin was recorded at 13.23%, with a return on equity of 44.01%. Quarterly revenue exhibited a year-over-year increase of 13.0% compared to the same period in the previous year when the company earned $0.23 in EPS. Analysts anticipate Chipotle may post an EPS of 1.08 for the ongoing fiscal year.

Insider Transactions

In other news regarding Chipotle, Director Robin S. Hickenlooper sold 1,790 shares of Chipotle stock on September 12 at an average price of $56.38, bringing in $100,920.20 from the transaction. Post-sale, Hickenlooper holds around 41,510 shares valued at approximately $2,340,333.80. Separately, insider Curtis E. Garner sold 15,750 shares on September 11 at an average price of $55.02, totaling $866,565.00. Following this transaction, Garner owns 473,514 shares worth approximately $26,052,740.28. Over the last 90 days, company insiders have sold a combined total of 50,684 shares valued at $2,817,127.

Institutional Ownership

Significant institutional activity has been observed concerning Chipotle's stock. Global Wealth Management Investment Advisory Inc. acquired a new position valued at about $1,757,000 in the third quarter. Heritage Investors Management Corp increased their holdings by 10.7%, now owning 411,356 shares worth $23,702,000. Arthur M. Cohen & Associates LLC also raised its stake by 3.6%, holding 59,290 shares valued at $3,390,000. Furthermore, Pittenger & Anderson Inc. increased its holdings by 3.1% to 8,250 shares, while Amalgamated Bank raised its ownership by 7.2% to 315,595 shares valued at $18,185,000. A significant 91.31% of Chipotle's stock is owned by institutional investors.

About Chipotle Mexican Grill

Chipotle Mexican Grill, Inc., along with its subsidiaries, operates a chain of fast-casual restaurants offering a variety of food and beverages such as burritos, burrito bowls, quesadillas, tacos, and salads. The company also provides delivery services through its app and website, with operations extending across the United States, Canada, France, Germany, and the United Kingdom.

Chipotle, Stock, Analysts