Chipotle Stock Charges Higher After Earnings

Plenty of analysts adjusted their price targets

Deputy Editor
Jul 27, 2022 at 10:34 AM
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Shares of Chipotle Mexican Grill Inc (NYSE:CMG) are surging this morning, following the fast-food chain's second-quarter earnings report. The company saw profits of $9.30 per share, topping estimates, though its revenue missed expectations. The restaurant had less consumers due to inflation concerns, but price hikes helped cushion the blow. In addition, the company raised its current-quarter sales outlook. At last glance, CMG was up 13.4% at $1,492.69. 

Analysts were quick to chime in, hitting Chipotle stock with four price-target hikes and five price-target cuts. The 12-month consensus price target of $1,736.13 is now a 16.3% premium to current levels. Brokerage firms lean bullish in terms of ratings, with 18 of the 25 in coverage carrying a "buy" or better rating, and seven a tepid "hold."

Meanwhile, the options pits lean bearish. CMG's 10-day put/call volume ratio of 1.29 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranks higher than 84% of readings from the past year. 

Today, overall options volume is running at 10 times the intraday average, with 6,328 calls and 5918 puts exchanged so far. The weekly 7/29 1,500-strike call is the most popular, with new positions being bought to open there. 

On the charts, today's pop has CMG trading at its highest levels since April, while also breaking out above several long-term moving averages, including the 140-day trendline. Year-to-date, the equity remains down 14.3%. 

 

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