Chipotle Mexican Grill, Inc. (CMG) Stock: A Service Stock That’s Making Its Way For The Bottom

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Chipotle Mexican Grill, Inc. (CMG) is making a move down in the market today. The company, focused on the service industry, is currently priced at $671.46 after tumbling 0.15% so far in today’s session. As it relates to service stocks, there are quite a few aspects that have the potential to generate price movement in the market. One of the most common is news. Here are the recent headlines centered around CMG:

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Mar-22-19 12:02PM Wedbush No Longer Bearish On Chipotle, Highlights No Negative Catalysts
09:41AM Chipotle Could Heat Up Following Wedbush Upgrade
07:49AM Here are the biggest analyst calls of the day: Best Buy, Chipotle, Sherwin-Williams & more
07:33AM Chipotle’s stock edges up after Wedbush backs off from bearish stance, boosts price target 28%
Mar-21-19 05:08PM Burger King and Popeyes have a stealth digital-delivery business: CEO

Nonetheless, any time investors are making a decision to invest, prospective investors should focus on much more than just news, this is especially the case in the ever highly complex service industry. Here’s what’s happening with Chipotle Mexican Grill, Inc..

Performance Trends That We’ve Seen From CMG

While a move down in a single session, like the move that we’re seeing from Chipotle Mexican Grill, Inc. may make some investors unhappy, that by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always smart to take a look at trends experienced by the stock for a period longer than a single trading session. When it comes to CMG, below are the movements that investors have experienced:

  • Past 5 Sessions – Over the past 7 days, CMG has produced a price change that amounts to 5.08%.
  • Past Month – The monthly performance from Chipotle Mexican Grill, Inc. comes to 11.69%.
  • Past 3 Months – Throughout the past 3 months, the company has produced a return on investment of 57.23%
  • Bi-Annually – Over the past 6 months, we have seen a change that works out to 36.87% from the stock.
  • YTD – Since the open of this year CMG has produced a return of 55.51%.
  • Annually – Finally, in the past full year, investors have seen a change in the amount of 100.72% out of CMG. In this period of time, the stock has traded at a high of -1.26% and a low of 118.22%.

Ratios Worth Paying Attention To

Looking at a few key ratios having to do with a company generally gives prospective traders an understanding of how risky and/or rewarding a pick might be. Here are some of the important ratios to look at when looking at CMG.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. As the short ratio climbs, it means that more investors believe that the value of the stock is going to go down. Throughout the sector, strong service stocks tend to have a lower short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, in regard to Chipotle Mexican Grill, Inc., it’s short ratio is 3.40.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure whether or not a company can pay for its debts when they mature with only quick assets or current assets. do have great current and quick ratios. When it comes to CMG, the quick and current ratios add up to 1.80 and 1.80 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price of the stock. In this particular case, that ratio works out to 51.92.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of shares. As it relates to CMG, the cash to share value works out to 24.50.

Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CMG, here’s what we’re seeing:

Institutions own 97.70% of the company. Institutional interest has moved by 4.03% over the past three months. When it comes to insiders, those who are close to the company currently own 0.20% percent of CMG shares. Institutions have seen ownership changes of an accumulative -78.30% over the last three months.

How Analysts Feel About Chipotle Mexican Grill, Inc.

Although it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions when validating your own thoughts before making an investment decision in the service sector. Below you’ll find the most recent moves that we’ve seen from analysts when it comes to CMG.

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Mar-22-19 Upgrade Wedbush Underperform → Neutral $500 → $640
Mar-21-19 Reiterated Argus Buy $670 → $770
Mar-18-19 Reiterated Piper Jaffray Overweight $661 → $725
Feb-07-19 Reiterated Telsey Advisory Group Market Perform $500 → $600
Feb-07-19 Reiterated Maxim Group Hold $510 → $540

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $15.54. In the current quarter, analysts see the company producing earnings in the amount of $2.90. Over the last 5 years, CMG has generated revenue in the amount of $8.60% with earnings coming in at -10.30%. On a quarter over quarter basis, earnings have seen movement of -42.10% and revenue has seen movement of 10.40%.

Interested In How Many Shares Are Available?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 27.62M shares of Chipotle Mexican Grill, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CMG has a float of 27.24M.

I also find it important to look at the short float. After all, if a large portion of the float is shorted, the overall feeling among investors is that the stock is going to take a dive. As far as CMG, the percentage of the float that is sold short is 8.89%. Most investors would say that a high short percent of the float is anything over 40%. However, I’ve seen that any short percent of the float over 26% is likely a play that comes with hefty risk.

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