Chipotle Mexican Grill, Inc. (CMG) Shares Down Big On Lower Guidance, E. coli

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Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) are down signifcantly in early afternoon trading today as the company has lowered their guidance for the fourth quarter considerably. While analysts had been expecting the company to report $4.06 per share for the quarter, the company has lowered their guidance to just $2.45 to $2.85 per share. This is down from $3.85 per share for the same time frame last year, and likely has something to do with the recent E. coli outbreaks plaguing the company.

Shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) have rebounded considerably from earlier in the day when they opened at a 52-week low of just $515. The stock has fallen 2.71% or $15.23 following this negative news, hitting $545.97 per share. About 2.86 million shares traded hands or 144.44% up from the average. CMG has declined 11.42% since May 4, 2015 and is downtrending. It has underperformed the S&P500 by 10.34%.

From a total of 17 analysts covering Chipotle Mexican Grill Inc. (NYSE:CMG) stock, 8 rate it a “Buy”, 1 a “Sell”, and 8 a “Hold”. This means that 47% of the ratings are positive. The highest target price is $850 while the lowest target price is $525. The mean of all analyst targets is $713.28 which is 30.64% above today’s ($545.97) stock price. Chipotle Mexican Grill Inc. was the topic of 28 analyst reports since July 22, 2015 according to the firm StockzIntelligence Inc. Deutsche Bank maintained shares on December 4 with a “Hold” rating. Robert W. Baird downgraded shares to a”Neutral” rating and a $675 target share price in their report from a November 6. Bank of America downgraded CMG stock in a recent report from November 23 to a “Underperform” rating. Wedbush maintained the rating on October 21. Wedbush has a “Neutral” rating and a $740 price target on shares. Finally, Maxim Group maintained the stock with a “Hold” rating in a report they issued on a November 23.

The institutional sentiment decreased to 0.96 in Q2 2015. It’s down 0.17, from 1.13 in 2015Q1. The ratio worsened, as 68 funds sold all their Chipotle Mexican Grill, Inc. shares they owned while 181 reduced their positions. 55 funds bought stakes while 183 increased their total positions. Institutions now own 28.53 million shares which is 76.33% less than the previous share count of 120.56 million in 2015Q1.

Windward Capital Management Co Ca holds 5.08% of its total portfolio in Chipotle Mexican Grill, Inc., equating to 31,222 shares. Csat Investment Advisory L.P. owns 15,466 shares representing 4.37% of their total US portfolio. Moreover, Hhr Asset Management Llc has 4.22% of their total portfolio invested in the company, equating to 173,671 shares. The New York-based Cim Llc has a total of 3.8% of their portfolio invested in the stock. Birinyi Associates Inc, a Connecticut-based fund reported 8,916 shares owned.

Since March 17, 2015, the stock had 0 insider buys, and 11 insider sales for a total of $41.52 million in net activity. Charlesworth John S sold 2,000 shares worth $1.50M. Crumpacker Mark sold 998 shares worth $729,817. Hartung Jack sold 2,485 shares worth $1.84 million. Friedman Darlene J sold 1,379 shares worth $1.01 million. The insider Ells Steve sold 10,090 shares worth $6.98 million.

Chipotle Mexican Grill, Inc. develops and operates Chipotle Mexican Grill restaurants, which serve a focused menu of burritos, tacos, burrito bowls (a burrito without the tortilla) and salads. The company has a market cap of $17.61 billion. The Firm operates 1,755 restaurants in the United States, seven in Canada, six in England, three in France, and one in Germany. It has 32.57 P/E ratio. The Company’s restaurants also include nine ShopHouse Southeast Asian Kitchen restaurants.

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