Bulls Take a Bite Into CMG Stock After Earnings

There's still plenty of room for upgrades among the brokerage bunch, however

Deputy Editor
Feb 5, 2020 at 9:15 AM
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The shares of restaurant giant Chipotle Mexican Grill, Inc. (NYSE:CMG) are signaling yet another fresh high this morning, after the company announced fourth-quarter profits of $2.86 per share, and revenue of $1.44 billion, both of which beat analysts' estimates. The company cited its online loyalty program and higher menu prices for the earnings beat, and predicted steady growth into the year, with several new stores set to open. The stock is up 1.8% at $900.36 in pre-market trading. 

No less than nine analysts have lifted their target prices in response, including Suntrust Robinson and Credit Suisse, which both lifted their price targets to a Street high of $1,010. There's still plenty of room for upgrades, though. Fifteen analysts in coverage consider Chipotle a "hold" or worse, compared to the nine who call it a "strong buy." 

Chipotle stock has been on a roll lately, with the equity riding the ascending 20-day moving average towards new highs since a bull gap in early December. Plus, the security is up over 69% in the last 12 months. 

Options bears could be kicking rocks today, based on the stock's 50-day put/call volume ratio of 1.01 at the the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 76% of all other readings from the past year and suggests a bigger-than-usual appetite for long puts of late. 


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