Chipotle (CMG, $718.88) gets a downgrade to hold from buy from Jefferies; shares slide -1.2%
Chipotle Mexican Grill shares fell -1.2% Thursday, following a downgrade by Jefferies analysts.
The analysts at Jefferies lowered their rating on Chipotle to hold from buy, as they anticipate that the stock may have reached its full valuation after rallying almost 70% year-to-date.
"Although the company reached an impressive 1 million rewards members in barely 10 days, we think this key driver, along with the company's powerful digital drivers are now being better understood and discounted in the stock," Jefferies analyst Andy Barish said in a note to investors.
Jefferies raised its price target on Chipotle stock to $700 from $600.
CMG sees MACD Histogram crosses below signal line
CMG saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 21, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 50 instances where the indicator turned negative. In of the 50 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 14, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on CMG as a result. In of 68 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CMG declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where CMG's RSI Oscillator exited the oversold zone, of 31 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where CMG advanced for three days, in of 347 cases, the price rose further within the following month. The odds of a continued upward trend are .
CMG may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 349 cases where CMG Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. CMG’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (19.157) is normal, around the industry mean (9.401). P/E Ratio (48.077) is within average values for comparable stocks, (200.144). Projected Growth (PEG Ratio) (1.435) is also within normal values, averaging (1.520). CMG has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.032). P/S Ratio (5.760) is also within normal values, averaging (3.486).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
an operator of fast-casual, fresh Mexican food restaurants
Industry Restaurants
CMG and
Correlation & Price change
A.I.dvisor indicates that over the last year, CMG has been loosely correlated with FRSH. These tickers have moved in lockstep 61% of the time. This A.I.-generated data suggests there is some statistical probability that if CMG jumps, then FRSH could also see price increases.
| Ticker / NAME | Correlation To CMG | 1D Price Change % | ||
|---|---|---|---|---|
| CMG | 100% | -2.84% | ||
| FRSH - CMG | 61% Loosely correlated | -2.89% | ||
| BROS - CMG | 46% Loosely correlated | -3.30% | ||
| SBUX - CMG | 38% Loosely correlated | -2.16% | ||
| SHAK - CMG | 38% Loosely correlated | -3.88% | ||
| CNNE - CMG | 38% Loosely correlated | -2.05% | ||
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