Cibc World Market Inc. Makes New Investment in Chipotle Mexican Grill, Inc. $CMG

Cibc World Market Inc. acquired a new stake in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 151,317 shares of the restaurant operator’s stock, valued at approximately $5,145,000.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its holdings in Chipotle Mexican Grill by 14.8% during the fourth quarter. Vanguard Group Inc. now owns 144,588,220 shares of the restaurant operator’s stock valued at $5,349,764,000 after purchasing an additional 18,660,882 shares during the period. BlackRock Inc. bought a new position in shares of Chipotle Mexican Grill in the second quarter worth about $4,417,475,000. Capital World Investors raised its stake in shares of Chipotle Mexican Grill by 15.8% in the fourth quarter. Capital World Investors now owns 101,688,010 shares of the restaurant operator’s stock worth $3,762,457,000 after buying an additional 13,843,222 shares during the period. Price T Rowe Associates Inc. MD lifted its position in shares of Chipotle Mexican Grill by 18.8% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 58,447,867 shares of the restaurant operator’s stock valued at $2,162,572,000 after buying an additional 9,237,720 shares in the last quarter. Finally, Capital International Investors lifted its position in shares of Chipotle Mexican Grill by 17.7% during the 4th quarter. Capital International Investors now owns 45,294,212 shares of the restaurant operator’s stock valued at $1,675,895,000 after buying an additional 6,796,285 shares in the last quarter. Hedge funds and other institutional investors own 91.30% of the company’s stock.

Insider Activity at Chipotle Mexican Grill

In other news, insider Matthew R. Bush sold 2,675 shares of the business’s 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 transaction, the insider owned 21,415 shares of the company’s stock, valued at approximately $765,586.25. The trade was a 11.10% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 0.45% of the company’s stock.

Chipotle Mexican Grill Trading Down 1.4%

Shares of CMG opened at $37.50 on Wednesday. The business’s 50 day moving average is $34.01 and its 200 day moving average is $33.94. Chipotle Mexican Grill, Inc. has a 12-month low of $28.03 and a 12-month high of $43.13. The company has a market capitalization of $47.45 billion, a PE ratio of 34.40, a price-to-earnings-growth ratio of 2.42 and a beta of 0.94.

Chipotle Mexican Grill (NYSE:CMG) last posted its quarterly earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share 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 business had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period in the prior year, the company posted $0.33 EPS. The firm’s revenue for the quarter was up 9.3% compared to the same quarter last year. Equities research analysts predict that Chipotle Mexican Grill, Inc. will post 1.14 earnings per share for the current year.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Chipotle launched a new “Every Win Tastes Better” promotion with tennis player Taylor Fritz, offering BOGO entrées after his U.S. Open victories. The campaign follows record redemptions from the company’s back-to-school promotion and could support restaurant traffic, digital engagement and near-term sales. Chipotle Taylor Fritz promotion
• Positive Sentiment: Investors remain encouraged by Chipotle’s digital initiatives, menu innovation and unit-expansion plans, which could provide longer-term revenue growth and help explain the stock’s recent strength. Chipotle growth outlook
• Neutral Sentiment: CMG continued to rise despite a Baird downgrade because the firm’s Neutral rating still carries a $40 price target, while recent momentum and promotional activity appear to be outweighing the more cautious analyst view. Chipotle stock gains after downgrade
• Negative Sentiment: Baird lowered its rating to Neutral and cut its price target to $40 from $44, arguing that Chipotle may need to spend considerably more to generate slower sales growth. Rising labor, marketing and operating costs could pressure margins and limit valuation upside. Baird Chipotle downgrade
• Negative Sentiment: Insider Matthew R. Bush sold 2,675 shares worth approximately $95,631, reducing his direct stake by 11.1%. The transaction may modestly weigh on sentiment, although one insider sale does not necessarily signal deteriorating business conditions. SEC insider filing

Analyst Ratings Changes

CMG has been the topic of a number of recent analyst reports. Robert W. Baird restated a “neutral” rating and set a $40.00 target price (down from $44.00) on shares of Chipotle Mexican Grill in a research note on Monday. TD Cowen reiterated a “buy” rating and issued a $44.00 price target on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. BTIG Research reissued a “buy” rating and issued a $45.00 price objective on shares of Chipotle Mexican Grill in a research note on Wednesday, August 5th. Royal Bank Of Canada restated an “outperform” rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a research report on Thursday, April 30th. Finally, JPMorgan Chase & Co. upgraded shares of Chipotle Mexican Grill from a “neutral” rating to an “overweight” rating and lowered their target price for the company from $38.00 to $35.00 in a research note on Friday, June 5th. Twenty-three research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat.com, Chipotle Mexican Grill currently has an average rating of “Moderate Buy” and an average price target of $43.84.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill is a fast-casual restaurant company known for its Mexican-inspired menu of burritos, bowls, tacos and salads. Founded in 1993 by Steve Ells, the chain emphasizes fresh, customizable meals made from a limited menu of core ingredients and a focus on ingredient quality. Chipotle operates primarily company-owned restaurants and offers dine-in, takeout, catering and delivery through its own digital platforms and third-party partners.

The company is headquartered in Newport Beach, California, and traces its roots to Denver, Colorado.