Chipotle Mexican Grill (NYSE:CMG) Stock Sees Unusually High Call Option Buying

Chipotle Mexican Grill, Inc. (NYSE:CMG) was the recipient of some unusual options trading activity on Wednesday. Traders acquired 73,551 call options on the stock. This represents an increase of 35% compared to the average daily volume of 54,594 call options.

Chipotle Mexican Grill Price Performance

Shares of NYSE:CMG traded up $0.98 during midday trading on Wednesday, reaching $28.96. The company’s stock had a trading volume of 13,978,465 shares, compared to its average volume of 17,880,725. Chipotle Mexican Grill has a fifty-two week low of $27.31 and a fifty-two week high of $41.42. The company has a market capitalization of $36.65 billion, a P/E ratio of 26.56, a P/E/G ratio of 1.67 and a beta of 0.96. The business’s fifty day simple moving average is $33.29 and its 200-day simple moving average is $34.26.

Chipotle Mexican Grill (NYSE:CMG) last released its earnings results on Wednesday, July 29th. The restaurant operator reported $0.33 earnings per share for the quarter, beating the consensus estimate 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 company’s quarterly revenue was up 9.3% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.33 earnings per share. On average, analysts forecast that Chipotle Mexican Grill will post 1.14 earnings per share for the current fiscal year.

Analyst Ratings Changes

Several brokerages have issued reports on CMG. Weiss Ratings raised shares of Chipotle Mexican Grill from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Friday, August 7th. Morgan Stanley boosted 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, October 15th. Gordon Haskett dropped their price target on shares of Chipotle Mexican Grill from $42.00 to $36.00 and set a “hold” rating on the stock in a research report on Monday, October 19th. Stephens decreased their price target on Chipotle Mexican Grill from $40.00 to $38.00 and set an “equal weight” rating for the company in a research report on Thursday, October 15th. Finally, Robert W. Baird reduced their target price on Chipotle Mexican Grill from $40.00 to $35.00 and set a “neutral” rating for the company in a report on Friday, October 2nd. Twenty-seven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $43.56.

Key Chipotle Mexican Grill News

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

• Positive Sentiment: RBC Capital Markets sees potential upside to Chipotle’s comparable-sales performance, citing promotional activity and stronger digital engagement as possible growth drivers. The firm’s constructive view is helping support the stock ahead of earnings. RBC flags earnings upside at Chipotle
• Positive Sentiment: Chipotle is bringing back its popular Smoked Brisket for a limited time and promoting Family Meals with a national advertising campaign. The product launch could increase restaurant traffic and average order values ahead of the earnings release. Smoked Brisket Return Could Be A Big Week For Chipotle Stock
• Positive Sentiment: Wall Street analysts collectively rate CMG “Moderate Buy,” providing some support after the shares recently touched a 52-week low. Chipotle Stock Now Rated Moderate Buy
• Neutral Sentiment: Investors are focused on third-quarter sales growth, customer traffic, digital orders, margins and management’s outlook. The report will indicate whether Chipotle’s recent weakness reflects an overly pessimistic valuation or deteriorating fundamentals. Chipotle Q3 earnings: Sales growth, traffic trends in focus
• Negative Sentiment: Analysts caution that even an earnings beat may not provide enough of a catalyst. CEO Scott Boatwright is under pressure to improve service speed, the customer experience and promotional effectiveness while restoring traffic growth. Chipotle’s Stock Needs a Jolt
• Negative Sentiment: Broader comparisons with McDonald’s highlight ongoing concerns about restaurant traffic, operating margins and whether Chipotle’s growth strategy can justify its valuation. Investors may therefore react more strongly to forward guidance than to headline quarterly results. McDonald’s vs. Chipotle

Insiders Place Their Bets

In other Chipotle Mexican Grill news, insider Matthew R. Bush sold 2,675 shares of the business’s stock in a transaction on Friday, August 21st. The stock was 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 in the company, valued at approximately $765,586.25. The trade was a 11.10% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 0.45% of the company’s stock.

Institutional Investors Weigh In On Chipotle Mexican Grill

A number of hedge funds and other institutional investors have recently modified their holdings of CMG. Parcion Private Wealth LLC increased its stake in Chipotle Mexican Grill by 29.7% in the 3rd quarter. Parcion Private Wealth LLC now owns 9,271 shares of the restaurant operator’s stock worth $296,000 after purchasing an additional 2,123 shares during the period. United Asset Strategies Inc. purchased a new stake in shares of Chipotle Mexican Grill during the third quarter valued at approximately $858,000. Choreo LLC grew its holdings in shares of Chipotle Mexican Grill by 5.6% in the third quarter. Choreo LLC now owns 25,514 shares of the restaurant operator’s stock worth $815,000 after purchasing an additional 1,344 shares during the last quarter. D.A. Davidson & CO. grew its holdings in shares of Chipotle Mexican Grill by 2.2% in the third quarter. D.A. Davidson & CO. now owns 92,885 shares of the restaurant operator’s stock worth $2,968,000 after purchasing an additional 2,021 shares during the last quarter. Finally, Motley Fool Asset Management LLC grew its holdings in shares of Chipotle Mexican Grill by 4.3% in the third quarter. Motley Fool Asset Management LLC now owns 106,476 shares of the restaurant operator’s stock worth $3,402,000 after purchasing an additional 4,435 shares during the last quarter. Institutional investors and hedge funds own 91.30% of the company’s stock.

Chipotle Mexican Grill Company Profile

Chipotle Mexican Grill, Inc (NYSE: CMG) operates a chain of fast-casual restaurants focused on Mexican-inspired food. Its menu includes burritos, burrito bowls, tacos, quesadillas and salads, with options such as chicken, steak, barbacoa, carnitas, sofritas and vegetables. The company emphasizes preparing food in its restaurants from ingredients it describes as responsibly sourced, including meats raised with attention to animal welfare and produce from selected suppliers.

Founded by Steve Ells in 1993, Chipotle opened its first restaurant in Denver, Colorado.