Chipotle Stock Charges Higher After Earnings

Plenty of analysts adjusted their price targets

Deputy Editor
Jul 27, 2022 at 10:34 AM
facebook twitter linkedin


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%. 

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners