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Chipotle Mexican Grill Inc. (NYSE:CMG): An Opportunity for Fundamental Investors?

Chipotle Mexican Grill Inc. (NYSE:CMG) Relative Strength Index (RSI) is 37.41, with weekly volatility at 2.10% and ATR at 36.61. The CMG stock’s 52-week price range has touched low of $964.50 and a $1579.52 high. Intraday shares traded counted 0.37 million, which was -27.19% lower than its 30-day average trading volume of 287.34K. Its shares traded higher over the last trading session, gaining 2.65% on 05/20/21. The shares fell to a low of $1,336.00 before closing at $1341.78. CMG’s previous close was $1307.19 while the outstanding shares total 28.12M. The firm has a beta of 1.37, a 12-month trailing P/E ratio of 94.21, and a growth ratio of 1.70.

Investors have identified the Restaurants company Chipotle Mexican Grill Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $36.83 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Chipotle Mexican Grill Inc. (CMG) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 1.46 billion total, with 834.0 million as their total liabilities.

CMG were able to record 219.35 million as free cash flow during the 07/27/2021 quarter of the year, this saw their quarterly net cash flow reduce by 86.8 million. In cash movements, the company had a total of 305.97 million as operating cash flow.

Potential earnings growth for Chipotle Mexican Grill Inc. (CMG)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/27/2021 quarter of the year, Chipotle Mexican Grill Inc. recorded a total of 1.74 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 18.99% coming in sequential stages and their sales for the 07/27/2021 quarter increasing by 7.69%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 1.35 billion trying to sell their products during the last quarter, with the result yielding a gross income of 388.76 million. This allows shareholders to hold on to 28.12M with the recently reported earning now reading 4.52 cents per share. This is a figure that compared to analyst’s prediction for their 07/27/2021 (5.36 cents a share).

Having a look at the company’s valuation, the company is expected to record 32.28 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on CMG sounds very interesting.

Is the stock of CMG attractive?

In related news, Director, Hickenlooper Robin S sold 109 shares of the company’s stock in a transaction that recorded on May 19. The sale was performed at an average price of 1300.00, for a total value of 141,700. As the sale deal closes, the Chief Marketing Officer, Brandt Christopher W now sold 2,795 shares of the company’s stock, valued at 4,111,445. Also, Director, Carey Matt bought 673 shares of the company’s stock in a deal that was recorded on Apr 23. The shares were price at an average price of 1485.00 per share, with a total market value of 999,405. Following this completion of acquisition, the Chief Restaurant Officer, Boatwright Scott now holds 1,763 shares of the company’s stock, valued at 2,749,998. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.70%.

17 out of 32 analysts covering the stock have rated it a Buy, while 13 have maintained a Hold recommendation on Chipotle Mexican Grill Inc.. 0 analysts has assigned a Sell rating on the CMG stock. The 12-month mean consensus price target for the company’s shares has been set at $1707.63.

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