Stock Traders Purchase Large Volume of Put Options on Chipotle Mexican Grill (NYSE:CMG)

Chipotle Mexican Grill, Inc. (NYSE:CMG) was the recipient of some unusual options trading activity on Wednesday. Stock investors acquired 80,695 put options on the company. This is an increase of 61% compared to the typical daily volume of 50,048 put options.

Chipotle Mexican Grill Stock Up 9.1%

Shares of CMG traded up $2.60 during trading hours on Thursday, reaching $31.33. 42,432,740 shares of the company traded hands, compared to its average volume of 18,084,094. The stock has a market capitalization of $39.65 billion, a PE ratio of 28.74, a price-to-earnings-growth ratio of 1.67 and a beta of 0.96. Chipotle Mexican Grill has a fifty-two week low of $27.31 and a fifty-two week high of $41.42. The stock has a fifty day simple moving average of $33.20 and a 200 day simple moving average of $34.21.

Chipotle Mexican Grill (NYSE:CMG) last issued its earnings results on Wednesday, October 28th. The restaurant operator reported $0.27 EPS for the quarter, missing analysts’ consensus estimates of $0.29 by ($0.02). Chipotle Mexican Grill had a net margin of 11.43% and a return on equity of 54.65%. The business had revenue of $3.29 billion during the quarter, compared to analysts’ expectations of $3.29 billion. During the same period in the prior year, the business posted $0.29 EPS. The business’s revenue was up 9.6% on a year-over-year basis. Research analysts predict that Chipotle Mexican Grill will post 1.14 EPS for the current fiscal year.

Insider Buying and Selling at Chipotle Mexican Grill

In other news, insider Matthew R. Bush sold 2,675 shares of the business’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 transaction of $95,631.25. Following the transaction, the insider directly owned 21,415 shares in the company, valued at $765,586.25. The trade was a 11.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 0.45% of the company’s stock.

Institutional Investors Weigh In On Chipotle Mexican Grill

Hedge funds and other institutional investors have recently bought and sold shares of the business. Osbon Capital Management LLC acquired a new position in shares of Chipotle Mexican Grill in the second quarter worth $26,000. Meeder Asset Management Inc. acquired a new position in shares of Chipotle Mexican Grill in the 2nd quarter valued at $27,000. Kelleher Financial Advisors acquired a new stake in Chipotle Mexican Grill in the 2nd quarter valued at $28,000. Merkkuri Wealth Advisors LLC bought a new position in Chipotle Mexican Grill during the 1st quarter valued at about $28,000. Finally, Bell Investment Advisors Inc bought a new stake in shares of Chipotle Mexican Grill during the second quarter worth $32,000. 91.30% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

CMG has been the topic of a number of research analyst reports. Argus boosted their price target on shares of Chipotle Mexican Grill from $40.00 to $45.00 and gave the company a “buy” rating in a research note on Tuesday, August 4th. KeyCorp reiterated an “overweight” rating and issued a $40.00 price target (down from $42.00) on shares of Chipotle Mexican Grill in a research note on Thursday. Gordon Haskett cut their price objective on shares of Chipotle Mexican Grill from $42.00 to $36.00 and set a “hold” rating on the stock in a report on Monday, October 19th. JPMorgan Chase & Co. lowered their target price on shares of Chipotle Mexican Grill from $40.00 to $37.00 and set an “overweight” rating for the company in a report on Tuesday, September 29th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $51.00 target price on shares of Chipotle Mexican Grill in a research report on Thursday. Twenty-seven research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $42.47.

Chipotle Mexican Grill News Summary

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

• Positive Sentiment: Third-quarter revenue rose 9.6% to $3.29 billion, in line with expectations, while comparable-restaurant sales increased 2.1% and transactions grew for the third consecutive quarter. Value offers and limited-time menu items helped attract diners. Chipotle beats quarterly sales expectations on resilient demand
• Positive Sentiment: Investors responded favorably to signs of a traffic recovery following earlier food-safety concerns. New menu launches, refreshed loyalty benefits and plans to accelerate technology and menu innovation are supporting the turnaround. Chipotle Sales Beat as New Chicken, Chips Bring Diners Back
• Positive Sentiment: Chipotle opened 84 company-owned restaurants during the quarter, and its loyalty program surpassed 24 million members, providing additional long-term growth and customer-engagement potential. Chipotle: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Several analysts maintained bullish ratings, including DA Davidson and BTIG Research at $45 targets and Oppenheimer at a $51 target, implying substantial upside based on the supplied reference price. Oppenheimer analyst rating
• Neutral Sentiment: Analyst opinion remains mixed: Citigroup kept a Buy rating while cutting its target to $41, whereas BNP Paribas Exane retained Neutral and reduced its target to $36. Bernstein also lowered its target to $43 from $50. Citigroup price target
• Negative Sentiment: Adjusted earnings were $0.27 per share, below the $0.29 consensus and last year’s $0.29, as higher operating costs, beef prices and increased protein usage pressured margins. Chipotle Q3 earnings miss estimates
• Negative Sentiment: Management’s outlook calls for only modestly higher sales, leaving investors dependent on the fourth-quarter brisket launch, continued traffic gains and successful cost management to sustain the recovery. The rest of Chipotle’s year hinges on brisket

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.