Chipotle Mexican Grill (NYSE:CMG) Stock Gets Price Target Reduction from Raymond James Financial

Chipotle Mexican Grill (NYSE:CMG) had its target price decreased by Raymond James Financial from $42.50 to $37.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an “outperform” rating on the restaurant operator’s stock. Raymond James Financial’s price objective points to a potential upside of 23.80% from the company’s previous close.

A number of other research firms have also recently weighed in on CMG. Morgan Stanley increased their price objective on Chipotle Mexican Grill from $39.00 to $40.00 and gave the stock an “equal weight” rating in a research report on Thursday. Sanford C. Bernstein reissued an “outperform” rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Stephens dropped their target price on Chipotle Mexican Grill from $40.00 to $38.00 and set an “equal weight” rating on the stock in a report on Thursday. Argus upped their price target on Chipotle Mexican Grill from $40.00 to $45.00 and gave the stock a “buy” rating in a research note on Tuesday, August 4th. Finally, Piper Sandler decreased their price target on Chipotle Mexican Grill from $42.00 to $39.00 and set an “overweight” rating for the company in a report on Thursday, July 30th. Twenty-two investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $43.67.

Chipotle Mexican Grill Price Performance

Shares of NYSE:CMG traded down $0.69 on Friday, reaching $29.89. The company’s stock had a trading volume of 7,369,046 shares, compared to its average volume of 17,686,797. The stock’s 50-day moving average is $34.03 and its two-hundred day moving average is $33.49. Chipotle Mexican Grill has a 52-week low of $28.03 and a 52-week high of $42.74. The stock has a market capitalization of $37.82 billion, a P/E ratio of 27.48, a PEG ratio of 1.87 and a beta of 0.96.

Chipotle Mexican Grill (NYSE:CMG) last released its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.32 by $0.01. The firm had revenue of $3.35 billion for the quarter, compared to analyst estimates of $3.33 billion. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The business’s revenue was up 9.3% on a year-over-year basis. During the same quarter last year, the company posted $0.33 earnings per share. Equities analysts forecast that Chipotle Mexican Grill will post 1.14 earnings per share for the current fiscal year.

Insider Activity

In related news, insider Matthew R. Bush sold 2,675 shares of Chipotle Mexican Grill stock in a transaction that occurred on Friday, August 21st. The stock was sold at an average price of $35.75, for a total transaction of $95,631.25. Following the completion of the transaction, the insider directly owned 21,415 shares in the company, valued at $765,586.25. The trade was a 11.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.45% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Chipotle Mexican Grill

Hedge funds have recently bought and sold shares of the stock. MV Capital Management Inc. acquired a new stake in shares of Chipotle Mexican Grill during the fourth quarter valued at $26,000. Osbon Capital Management LLC purchased a new position in Chipotle Mexican Grill in the 2nd quarter valued at about $26,000. Meeder Asset Management Inc. purchased a new position in Chipotle Mexican Grill in the 2nd quarter valued at about $27,000. Merkkuri Wealth Advisors LLC acquired a new position in shares of Chipotle Mexican Grill in the first quarter valued at approximately $28,000. Finally, Kelleher Financial Advisors acquired a new stake in shares of Chipotle Mexican Grill during the second quarter worth $28,000. Hedge funds and other institutional investors own 91.30% of the company’s stock.

Chipotle Mexican Grill News Roundup

Here are the key news stories impacting Chipotle Mexican Grill this week:

• Positive Sentiment: Morgan Stanley raised its price target for Chipotle Mexican Grill (CMG) from $39 to $40 while maintaining an “equal weight” rating. The target implies substantial potential upside from recent levels, suggesting the firm views the selloff as excessive relative to long-term value.
• Positive Sentiment: UBS expects Chipotle’s sales growth to strengthen in 2027, potentially aided by new initiatives and a recovery in customer demand. Historical performance also provides some optimism: the stock generated double-digit fourth-quarter returns in 2020 and 2023, while management continues investing in initiatives designed to drive traffic and growth. Here’s What History Says Q4 Will Bring for Chipotle Stock
• Neutral Sentiment: Chipotle is attracting significant investor attention, making it a heavily watched stock. That visibility could increase trading activity, but the coverage itself does not provide a new fundamental catalyst. What to Know Beyond Why Chipotle Is a Trending Stock
• Negative Sentiment: UBS expects third-quarter sales to be broadly in line, with same-store sales growth of approximately 1.5%, only modestly above the 1.3% consensus estimate. However, weaker trends early in the fourth quarter and continued pressure on sales growth and restaurant margins could weigh on CMG until a possible 2027 recovery. Chipotle Faces Near-Term Sales Pressures but UBS Sees Stronger Growth in 2027
• Negative Sentiment: Stephens lowered its price target from $40 to $38 and kept an “equal weight” rating. Although the revised target remains above the recent share price, the reduction reinforces concerns about Chipotle’s near-term operating momentum.
• Negative Sentiment: CMG has declined sharply over the past month despite no new earnings report, underperforming the broader market. Investors appear increasingly concerned about valuation, slowing restaurant traffic and whether management’s initiatives can revive growth quickly. How Risky Is Chipotle Stock?

Chipotle Mexican Grill Company Profile

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.