The State Board of Administration of Florida Retirement System has recently disclosed a decrease in its stake in shares of Chipotle Mexican Grill, Inc. According to the board’s most recent Form 13F filing with the Securities and Exchange Commission, it sold 2,590 shares during the fourth quarter, resulting in a 7.5% reduction of its ownership. The fund now owns 31,847 shares in the restaurant operator’s stock—an approximate value of $44,187,000—by the end of Q4.
The decrease in shares is significant since Chipotle Mexican Grill is an established name within the food industry. Founded by Steve Ells in 1993 and headquartered in Newport Beach, California, this company offers a unique approach to fast food by using classic cooking techniques that utilize real food with wholesome ingredients—absent artificial colors or flavors—all while drastically reducing preservatives used in dishes.
Shares for Chipotle Mexican Grill opened at $2,033.51 just last Friday. Furthermore, the company boasts a market capitalization worth $56.10 billion with a P/E ratio of 55.00 and a P/E/G ratio of 1.49 while having a beta score of 1.34—a reassuring statistic for stockholders.
While Chipotle remains one to watch within the fast-food sector, it does not come without its challenges. Like many other companies hit by COVID-19 pandemic restrictions and limitations on indoor dining capacity across various states thereof leading to lost revenue among others issues resulting therefrom apart from wage increases as well as adjusted policies on raising prices would do harm their growth—and chip away at investor confidence.
In conclusion, stakeholders must observe any further actions undertaken from either side closely as it could affect not only stock performance but also potentially cause shifts or changes within the competitive landscape in which they operate; however there are several causes to believe that it can go back up due to volatility along with an upbeat mentality among investors.
Institutional Investors and Analysts Show Confidence in Chipotle Mexican Grill’s Future Growth
Chipotle Mexican Grill, Inc. is a restaurant operator that provides customers with delicious, wholesome food made from real ingredients and cooked using traditional methods. Founded in 1993 by Steve Ells, the company prides itself on quality and taste, offering a menu of burritos, tacos, bowls and salads without artificial colors, flavors or preservatives.
Recently, several institutional investors have modified their holdings of Chipotle Mexican Grill’s stock. Panagora Asset Management Inc., Cibc World Market Inc., Canada Pension Plan Investment Board, Cetera Investment Advisers and Sequoia Financial Advisors LLC all increased their positions in the first quarter of the year. In total, 93.26% of the company’s stock is owned by hedge funds and other institutional investors.
Research analysts have also weighed in on the stock. Six hold ratings and twenty-three buy ratings have been issued, with an average target price of $2,021.37 according to Bloomberg.com.
Chipotle Mexican Grill announced its quarterly earnings on April 25th where it reported $10.50 earnings per share for the quarter, surpassing consensus estimates of $8.89 by $1.61. The company had revenue of $2.40 billion during the quarter compared to an estimated $2.34 billion.
In February this year CEO Brian R.Niccol sold 5,636 shares of company stock at an average price of $1,646.82 totalling to $9,281,477.52 in value. Meanwhile insider Laurie Schalow recently sold 3,658 shares worth over $7 million US dollars.
Despite recent investor activity indicate bullish market sentiment toward Chipotle Mexican Grill’s future prospects given its growth trends; one should exercise due diligence before making an investment decision in this security as investing extracts both rewards as well as risks associated in equity investments regardless of prior performance data recorded including but not limited constraints related to regulatory, economic and sector specific market trends.