Insider Activity Report: Chipotle Mexican Grill (CMG)

Gregg Engles, a director at Chipotle Mexican Grill (CMG), recently bought 877 shares. The buy increased his holdings by 83 percent, and came to a total cost just over $2,000,000.

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  • The director was the last buyer of shares in May 2022. Since then, there have been nearly two dozen insider sales. Those have been a mix of regular sales and the exercise of stock options, including significant sales from the company CEO.

    Overall, Chipotle insiders own 0.6 percent of shares.

    Shares of the fast-service chain are up 60 percent over the past year, nearly three times the return of the S&P 500. That price appreciation is faster than the company’s 11 percent increase in revenues and 22 percent rise in earnings.

    Overall, Chipotle has fared well operationally, raising prices as needed to offset inflation while still keeping a strong customer base.

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  • Action to take: Shares have moved to a new all-time high in recent months. Investors may want to wait for a pullback, potentially under $2,000 per share, before starting or adding to a position. At the moment, Chipotle does not pay a dividend.

    For traders, the short-term trend is to the upside. The February 16 $2,600 calls, last going for about $16.50, are unlikely to move in-the-money. But they can likely trend higher in the coming weeks, for low-to-mid-double-digit gains.


    Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.

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