Chipotle Mexican Grill, Inc. $CMG Shares Acquired by Avity Investment Management Inc.

Avity Investment Management Inc. boosted its holdings in Chipotle Mexican Grill, Inc. (NYSE:CMG) by 1,572.6% in the third quarter, Holdings Channel reports. The firm owned 109,354 shares of the restaurant operator’s stock after purchasing an additional 102,816 shares during the quarter. Avity Investment Management Inc.’s holdings in Chipotle Mexican Grill were worth $3,494,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new stake in shares of Chipotle Mexican Grill in the second quarter valued at about $4,417,475,000. Bank of America Corp DE bought a new position in Chipotle Mexican Grill in the second quarter valued at approximately $383,483,000. Legal & General Group Plc acquired a new position in shares of Chipotle Mexican Grill during the 2nd quarter worth approximately $265,887,000. Man Group plc acquired a new position in shares of Chipotle Mexican Grill during the 2nd quarter worth approximately $240,389,000. Finally, Bank of New York Mellon Corp bought a new stake in shares of Chipotle Mexican Grill during the 2nd quarter worth approximately $222,809,000. 91.30% of the stock is currently owned by institutional investors and hedge funds.

Chipotle Mexican Grill Stock Performance

CMG traded down $1.04 on Friday, reaching $31.64. The company had a trading volume of 20,062,899 shares, compared to its average volume of 17,694,625. The stock has a market cap of $40.03 billion, a P/E ratio of 29.02, a P/E/G ratio of 1.88 and a beta of 0.96. Chipotle Mexican Grill, Inc. has a fifty-two week low of $28.03 and a fifty-two week high of $42.81. The company’s fifty day moving average is $34.50 and its 200 day moving average is $33.55.

Chipotle Mexican Grill (NYSE:CMG) last issued 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 net margin of 11.43% and a return on equity of 54.65%. The firm had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. During the same period last year, the business posted $0.33 earnings per share. The business’s revenue for the quarter was up 9.3% compared to the same quarter last year. On average, sell-side analysts expect that Chipotle Mexican Grill, Inc. will post 1.14 EPS for the current year.

Analysts Set New Price Targets

Several equities research analysts have recently commented on the company. Stephens reissued a “positive” rating and issued a $40.00 price objective (up from $36.00) on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Evercore reaffirmed an “outperform” rating and issued a $47.00 target price on shares of Chipotle Mexican Grill in a report on Thursday, July 30th. Mizuho reissued an “outperform” rating and set a $43.00 price target on shares of Chipotle Mexican Grill in a research report on Tuesday, September 1st. TD Cowen reaffirmed a “buy” rating and issued a $44.00 price objective on shares of Chipotle Mexican Grill in a research report on Thursday, July 30th. Finally, Raymond James Financial reiterated an “outperform” rating and set a $42.50 target price on shares of Chipotle Mexican Grill in a research note on Thursday, July 30th. Twenty-three equities research 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, the company has a consensus rating of “Moderate Buy” and an average price target of $43.91.

More Chipotle Mexican Grill News

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

• Positive Sentiment: Starbucks has reportedly worked with advisers on a potential acquisition of Chipotle, a transaction that could value the burrito chain at roughly $39 billion to $41 billion. A formal bid could provide CMG shareholders with a takeover premium and support the stock’s valuation. The report is particularly notable because Starbucks CEO Brian Niccol previously led Chipotle. Why a Starbucks takeover of Chipotle would — and wouldn’t — make sense for both companies
• Positive Sentiment: CMG shares initially rallied sharply on the takeover reports, reflecting expectations that Starbucks could offer a meaningful premium. However, the absence of a confirmed proposal means the gains remain largely speculation-driven. Chipotle Stocks Rallies on Report Starbucks Might Buy the Burrito Chain
• Neutral Sentiment: Chipotle’s upcoming third-quarter earnings report is another near-term catalyst. Analysts currently expect earnings per share to be roughly unchanged from the prior year, suggesting the stock may need solid sales, restaurant-opening and margin commentary to sustain investor interest. Earnings Preview: What to Expect From Chipotle Mexican Grill’s Report
• Negative Sentiment: Investors are increasingly focused on the risks of a potential transaction, including Starbucks’ financing burden, integration challenges and the possibility that the deal could distract management from its own turnaround. Those concerns, combined with profit-taking after the initial takeover-driven rally and the lack of a firm offer, help explain why CMG has since decreased. Starbucks Explores CMG Deal: Smart Move or Costly Gamble?

Insider Buying and Selling at Chipotle Mexican Grill

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 sale, 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.45% of the company’s 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.