Chipotle Mexican Grill (NYSE:CMG) Stock Price Down 7.1% – Should You Sell?

Chipotle Mexican Grill, Inc. (NYSE:CMG)’s share price fell 7.1% on Tuesday . The company traded as low as $34.27 and last traded at $34.8020. 12,171,939 shares changed hands during mid-day trading, a decline of 31% from the average daily volume of 17,747,648 shares. The stock had previously closed at $37.46.

Key Chipotle Mexican Grill News

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

• Positive Sentiment: Argus raised its price target on CMG from $40 to $45 and maintained a “buy” rating, citing potential upside from current levels. Benzinga
• Positive Sentiment: Chipotle’s second-quarter results showed continued underlying momentum: revenue increased 9.3% year over year to $3.35 billion, while adjusted earnings of $0.33 per share modestly exceeded analysts’ expectations. Menu innovation, digital investments and transaction growth supported the performance. CMG Q2 Deep Dive
• Neutral Sentiment: Bank of America Finance launched auto-callable notes linked to CMG stock. The issuance does not appear to change Chipotle’s operations or fundamentals, but it may contribute modestly to market activity. BofA Finance Notes
• Negative Sentiment: Chipotle removed jalapeños from multiple Minnesota locations while cooperating with health officials investigating the possible salmonella connection. Although officials reportedly said they were no longer concerned about continued exposure, the incident raises food-safety, litigation, sales and brand-reputation risks. Chipotle Pulled Jalapeños Tied to Minnesota Salmonella Cases
• Negative Sentiment: The outbreak headlines revived concerns about Chipotle’s historical food-safety reputation and arrived alongside broader restaurant contamination news, intensifying investor sensitivity to any potential health incident. Salmonella Hits Chipotle

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Morgan Stanley upped their target price on Chipotle Mexican Grill from $37.00 to $39.00 and gave the company an “equal weight” rating in a research report on Thursday, July 30th. Piper Sandler lowered 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. Citigroup dropped their price target on Chipotle Mexican Grill from $46.00 to $45.00 and set a “buy” rating on the stock in a research note on Monday, July 13th. BTIG Research restated a “buy” rating and set a $45.00 price objective on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Finally, Argus increased their price objective on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the company a “buy” rating in a research report on Tuesday. Twenty-four equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $44.16.

Chipotle Mexican Grill Stock Performance

The company has a 50 day simple moving average of $32.94 and a two-hundred day simple moving average of $34.56. The firm has a market cap of $43.43 billion, a PE ratio of 31.06, a P/E/G ratio of 2.39 and a beta of 0.94.

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

Hedge Funds Weigh In On Chipotle Mexican Grill

A number of institutional investors have recently bought and sold shares of the business. Revolve Wealth Partners LLC lifted its position in Chipotle Mexican Grill by 4.7% during the fourth quarter. Revolve Wealth Partners LLC now owns 4,804 shares of the restaurant operator’s stock valued at $290,000 after purchasing an additional 214 shares during the period. Bison Wealth LLC acquired a new stake in Chipotle Mexican Grill during the 4th quarter worth about $224,000. Empowered Funds LLC raised its stake in shares of Chipotle Mexican Grill by 5.5% during the 1st quarter. Empowered Funds LLC now owns 26,460 shares of the restaurant operator’s stock valued at $1,329,000 after buying an additional 1,368 shares during the last quarter. Osterweis Capital Management Inc. raised its stake in shares of Chipotle Mexican Grill by 7,176.0% during the 2nd quarter. Osterweis Capital Management Inc. now owns 1,819 shares of the restaurant operator’s stock valued at $102,000 after buying an additional 1,794 shares during the last quarter. Finally, Ieq Capital LLC lifted its holdings in shares of Chipotle Mexican Grill by 88.8% in the 2nd quarter. Ieq Capital LLC now owns 274,375 shares of the restaurant operator’s stock valued at $15,406,000 after buying an additional 129,066 shares during the period. 91.30% of the stock is owned by hedge funds and other institutional investors.

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.