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Chipotle executive sells over $3.1 million in company stock

Published 04/30/2024, 05:48 AM

In a recent transaction, Albert S. Baldocchi, a director at Chipotle Mexican Grill Inc . (NYSE:CMG), sold a significant number of shares in the company. The sale, which took place on April 26, 2024, involved a total of 1,000 shares at prices ranging from $3162.50 to $3167.093 per share, resulting in a total value of over $3.1 million.

The transactions were executed in multiple tranches, with shares being sold at slightly varying prices, reflecting a weighted-average price for some of the sales. According to the footnotes of the filing, the actual sales prices ranged from $3,166.04 to $3,166.99 per share for 947 shares, and from $3,167.06 to $3,167.36 per share for another 18 shares. This indicates that some shares were sold at prices higher than the reported weighted-average.

Following the sales, Baldocchi's indirectly held shares, which are part of a trust established for the benefit of his children, decreased to 27,250. The filing also reported non-derivative holdings of 37,271 shares owned directly by Baldocchi.

Investors often monitor insider transactions as they can provide insights into the executives' perspectives on the company's current valuation and future prospects. Baldocchi's sale represents a substantial divestment, and the details provided in the SEC filing offer a transparent view of the transaction's specifics.

The company, known for its fast-casual Mexican cuisine, has its business address in Newport Beach, California. Chipotle has not provided any official comment regarding the transactions reported in the filing.

InvestingPro Insights

As investors digest the news of the recent insider sale at Chipotle Mexican Grill Inc. (NYSE:CMG), it's worth considering the broader financial landscape of the company through the lens of InvestingPro data. With a substantial market capitalization of $88.12 billion, Chipotle stands as a significant player in the fast-casual dining industry. The company's P/E ratio, a measure of its current share price relative to its per-share earnings, is quite high at 67.95, reflecting a premium that investors are willing to pay for Chipotle's earnings potential. This is further underscored by an adjusted P/E ratio for the last twelve months as of Q1 2024, which sits at 66.6.

Chipotle's revenue growth has been robust, with a 13.61% increase over the last twelve months as of Q1 2024. This suggests that the company has been successfully expanding its operations and increasing sales. Additionally, the company's gross profit margin during the same period is a healthy 40.88%, indicating that Chipotle is able to retain a significant portion of its revenue as gross profit.

InvestingPro Tips highlight several key points that investors should consider. Notably, 23 analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on the company's financial performance. Additionally, the stock has experienced a significant return over the last week, with a 10.5% price total return. However, it's also worth noting that the RSI suggests the stock is in overbought territory, which could signal a potential pullback in the near term.

For those interested in a deeper dive into Chipotle's financials and future prospects, additional insights are available on InvestingPro. There are 20 more InvestingPro Tips for CMG, which can provide a more comprehensive understanding of the company's valuation and financial health. To access these insights and leverage the full suite of analytical tools, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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