Wells Fargo & Company Issues Pessimistic Forecast for Chipotle Mexican Grill (NYSE:CMG) Stock Price

Chipotle Mexican Grill (NYSE:CMG) had its price objective reduced by research analysts at Wells Fargo & Company from $45.00 to $40.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has an “overweight” rating on the restaurant operator’s stock. Wells Fargo & Company’s price target would suggest a potential upside of 40.77% from the stock’s current price.

CMG has been the topic of several other research reports. 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. Guggenheim reiterated a “neutral” rating and issued a $36.00 target price (up from $35.00) on shares of Chipotle Mexican Grill in a research note on Friday, July 31st. Seaport Research Partners began coverage on shares of Chipotle Mexican Grill in a research report on Wednesday, September 16th. They issued a “neutral” rating for the company. Bank of America restated a “buy” rating and set a $53.00 price target (up from $50.00) on shares of Chipotle Mexican Grill in a research note on Tuesday, September 1st. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Chipotle Mexican Grill in a report on Friday, July 31st. Twenty-one analysts have rated the stock with a Buy rating and eleven have given a Hold rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $42.96.

Chipotle Mexican Grill Price Performance

Shares of NYSE CMG opened at $28.41 on Wednesday. Chipotle Mexican Grill has a one year low of $28.03 and a one year high of $42.38. The business’s 50-day moving average price is $33.88 and its two-hundred day moving average price is $33.45. The company has a market capitalization of $35.96 billion, a P/E ratio of 26.09, a price-to-earnings-growth ratio of 1.83 and a beta of 0.96.

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 analysts’ consensus estimates of $0.32 by $0.01. The company had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.33 billion. Chipotle Mexican Grill had a return on equity of 54.65% and a net margin of 11.43%. The business’s quarterly revenue was up 9.3% on a year-over-year basis. During the same period last year, the business earned $0.33 EPS. On average, equities analysts anticipate that Chipotle Mexican Grill will post 1.14 EPS for the current year.

Insider Buying and Selling at Chipotle Mexican Grill

In related news, insider Matthew R. Bush sold 2,675 shares of the firm’s stock in a transaction that occurred 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 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 position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.45% of the company’s stock.

Institutional Investors Weigh In On Chipotle Mexican Grill

Several institutional investors and hedge funds have recently added to or reduced their stakes in CMG. Citizens Financial Group Inc. RI raised its position in shares of Chipotle Mexican Grill by 2.5% in the first quarter. Citizens Financial Group Inc. RI now owns 12,708 shares of the restaurant operator’s stock valued at $407,000 after purchasing an additional 311 shares during the period. ANB Bank lifted its stake in shares of Chipotle Mexican Grill by 5.8% in the first quarter. ANB Bank now owns 6,317 shares of the restaurant operator’s stock worth $202,000 after buying an additional 349 shares during the last quarter. State of Wyoming boosted its holdings in shares of Chipotle Mexican Grill by 10.9% during the 1st quarter. State of Wyoming now owns 3,759 shares of the restaurant operator’s stock worth $120,000 after buying an additional 368 shares during the period. Valmark Advisers Inc. boosted its holdings in shares of Chipotle Mexican Grill by 2.9% during the 1st quarter. Valmark Advisers Inc. now owns 13,275 shares of the restaurant operator’s stock worth $425,000 after buying an additional 377 shares during the period. Finally, Western Pacific Wealth Management LP boosted its holdings in shares of Chipotle Mexican Grill by 26.3% during the 1st quarter. Western Pacific Wealth Management LP now owns 2,023 shares of the restaurant operator’s stock worth $65,000 after buying an additional 421 shares during the period. 91.30% of the stock is currently owned by institutional investors and hedge funds.

Trending Headlines about Chipotle Mexican Grill

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

• Positive Sentiment: Citigroup maintained a Buy rating despite lowering its price target to $43 from $45, implying substantial potential upside from current levels. The firm’s view suggests confidence that Chipotle’s operational recovery can support long-term growth. Citigroup Has Lowered Expectations for Chipotle Mexican Grill Stock Price
• Positive Sentiment: Bank of America expects third-quarter results to show continued comparable-sales recovery, supporting management’s “Recipe for Growth” strategy. The company has reportedly delivered two consecutive quarters of comparable-sales growth. Chipotle Q3 Results Expected to Show Continued Sales Recovery
• Positive Sentiment: Chipotle’s Cultivate Next venture fund participated in a $12 million investment in agricultural-biologicals company IMIO. The deal could support the restaurant chain’s longer-term supply-chain resilience and sustainability efforts, although it is not expected to materially affect near-term earnings. IMIO Raises $12M from Sofinnova Partners and Chipotle’s Cultivate Next
• Neutral Sentiment: Chipotle is expected to report quarterly earnings on Wednesday. Results, comparable sales, traffic trends and management’s outlook will likely be the next major catalysts for CMG. Chipotle Projected to Announce Quarterly Earnings
• Neutral Sentiment: The company will bring back its Halloween Boorito promotion, offering $6 entrées to eligible Rewards members in costume. The campaign may boost traffic and engagement but involves discounted pricing. Boorito Returns: Chipotle to Offer $6 Entrées
• Negative Sentiment: TD Cowen reaffirmed a Hold rating but cut its price target sharply to $32 from $44. The reduction signals weaker near-term confidence and is the clearest recent pressure on the stock.
• Negative Sentiment: Analysts remain concerned that CMG’s valuation is elevated relative to reported profitability. Trefis notes that adjusted earnings valuation is steep for a restaurant chain whose recent net income has declined, increasing the stock’s sensitivity to any earnings or traffic disappointment. What Are Chipotle Investors Betting On?

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.