Chipotle Mexican Grill (NYSE:CMG) Shares Break Above 200 Day Moving Average – Should You Sell?

Chipotle Mexican Grill, Inc. (NYSE:CMG) crossed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $34.03 and traded as high as $35.31. Chipotle Mexican Grill shares last traded at $35.1730, with a volume of 21,880,748 shares traded.

Key Headlines Impacting Chipotle Mexican Grill

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

• Positive Sentiment: Third-quarter revenue growth, positive comparable-sales trends and new restaurant openings supported expansion. Chipotle also recorded its third consecutive quarter of comparable-store sales growth. Can Chipotle’s Sales Growth Offset Lower Restaurant-Level Margins? Should Investors Buy Into the Chipotle Turnaround?
• Neutral Sentiment: Chipotle is bringing back its popular smoked brisket in an effort to attract traffic, though the news does not establish how much it will boost sales. Chipotle looks to drive traffic with the return of its popular smoked brisket
• Negative Sentiment: Restaurant-level margins are under pressure from higher operating costs, while weaker sales trends toward quarter-end raise questions about whether revenue growth can offset the squeeze on profitability. Can Chipotle’s Sales Growth Offset Lower Restaurant-Level Margins?
• Negative Sentiment: An analyst fair-value estimate fell about 5%, from $42.71 to $40.57. The more cautious view reflects food-safety headlines, mixed near-term growth drivers and concern that Chipotle’s long-term earnings potential may already be reflected in its valuation. Chipotle (CMG) Stock Sees Fair Value Cut As Analysts Turn More Cautious

Wall Street Analysts Forecast Growth

CMG has been the subject of several research reports. Sanford C. Bernstein restated an “outperform” rating and issued a $43.00 price objective (down from $50.00) on shares of Chipotle Mexican Grill in a research report on Thursday, October 29th. Mizuho reduced their target price on shares of Chipotle Mexican Grill from $43.00 to $37.00 and set an “outperform” rating on the stock in a research report on Friday, October 23rd. Seaport Research Partners began coverage on shares of Chipotle Mexican Grill in a research report on Wednesday, September 16th. They set a “neutral” rating on the stock. Royal Bank Of Canada reissued an “outperform” rating and set a $40.00 price target (down from $45.00) on shares of Chipotle Mexican Grill in a research note on Thursday, October 29th. Finally, Argus raised their price target on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the company a “buy” rating in a report on Tuesday, August 4th. Twenty-seven investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $42.36.

Chipotle Mexican Grill Price Performance

The business has a 50-day moving average of $32.75 and a 200-day moving average of $33.98. The firm has a market cap of $43.49 billion, a price-to-earnings ratio of 32.13, a P/E/G ratio of 2.17 and a beta of 1.00.

Chipotle Mexican Grill (NYSE:CMG) last issued its quarterly earnings results on Wednesday, October 28th. The restaurant operator reported $0.27 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.02). The company had revenue of $3.29 billion for the quarter, compared to analyst estimates of $3.29 billion. Chipotle Mexican Grill had a net margin of 10.83% and a return on equity of 57.05%. The business’s revenue for the quarter was up 9.6% on a year-over-year basis. During the same period last year, the company posted $0.29 earnings per share. As a group, equities analysts anticipate that Chipotle Mexican Grill, Inc. will post 1.10 EPS for the current fiscal year.

Insider Activity at Chipotle Mexican Grill

In related news, insider Matthew R. Bush sold 2,675 shares of the firm’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 completion of the transaction, the insider directly owned 21,415 shares of the company’s stock, valued at approximately $765,586.25. This trade represents 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 the SEC website. Insiders own 0.45% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in Chipotle Mexican Grill during the second quarter valued at about $4,417,475,000. Bank of America Corp DE bought a new stake in shares of Chipotle Mexican Grill in the second quarter valued at approximately $383,483,000. Legal & General Group Plc bought a new stake in Chipotle Mexican Grill during the 2nd quarter valued at $265,887,000. Man Group plc bought a new stake in shares of Chipotle Mexican Grill during the 2nd quarter valued at $240,389,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Chipotle Mexican Grill during the 2nd quarter valued at $222,809,000. Institutional investors own 91.30% of the company’s stock.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill is a fast-casual restaurant company that serves Mexican-inspired food, including burritos, bowls, tacos and salads. Customers can customize meals with ingredients such as rice, beans, meats, vegetables, salsas and guacamole.

Founded by Steve Ells in Denver, Colorado, in 1993, Chipotle built its business around preparing food in restaurant kitchens and emphasizing ingredients it describes as responsibly sourced. The company primarily operates its own restaurants, rather than relying on a franchise model.

Chipotle serves customers in the United States and select international markets, including Canada and the United Kingdom.