Chipotle Restaurant in New York City

iStock.com/Anne Czichos

Investment Firm Increases Holdings in Chipotle Mexican Grill

March 20, 2024

Public Sector Pension Investment Board, a major institutional investor, recently raised its stake in Chipotle Mexican Grill, Inc. by 11.8%. This new move was noted in the third quarter report by Holdings Channel. Currently, the investment board owns 2,955 shares of the restaurant giant’s stock, last valued at approximately $5,413,000 based on its latest SEC filing.

This increase in ownership mirrors similar actions by other hedge funds. Notably, Norges Bank acquired a substantial position during the fourth quarter, valued at around $450,560,000. Similarly, Moneta Group Investment Advisors LLC entered the fray with an investment of approximately $248,604,000. These moves are indicative of growing confidence in Chipotle’s future prospects.

Moreover, key insiders within Chipotle Mexican Grill have been involved in significant stock transactions. For instance, insider Roger E. Theodoredis recently sold 898 shares, while CEO Brian R. Niccol offloaded 1,100 shares. Such transactions are closely monitored as they can reflect the confidence levels of those within the company.

Despite these transactions, Chipotle Mexican Grill’s stock experienced a modest 0.1% increase last Thursday, opening at $2,722.69. Over the past year, the stock has seen significant fluctuations, with a low of $1,569.00 and a high of $2,738.13. Currently, it boasts a market cap of $74.66 billion, with a price-to-earnings ratio of 61.39.

Analysts have been bullish on Chipotle’s future, with several firms revising their price targets upward. KeyCorp, Citigroup, TD Cowen, Stephens, and Truist Financial have all issued positive ratings and lifted their price targets for the stock. This sentiment reflects a general optimism about the company’s growth potential.

Chipotle Mexican Grill’s recent earnings report also contributed to this positive outlook. The company exceeded analysts’ expectations, reporting $10.36 EPS for the quarter, with a notable return on equity of 44.41%. Its revenue stood at $2.52 billion, showcasing a 15.4% increase compared to the previous year.

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