Chipotle Mexican Grill, Inc. (NYSE: CMG) shares fell in early trading today on lower trade volume than normal after a number of analysts weighed in on the investing value of the stock and reiterated thier respective ratings.
Meanwhile, U.S. stocks opened significantly lower in early trading. The Dow Jones Industrial Average was 58 points lower, or 0.29% to 19895, the S&P 500 fell 7 points, or 0.28% to 2268, while the Nasdaq dropped 22 points, or 0.38% to 5542.
Chipotle Mexican Grill, Inc. (NYSE: CMG) had its Neutral rating reiterated by equities researchers at Credit Suisse Group in a research note to investors. With a rating of Neutral on the shares, the company has a 52-week high of $542.50. The one-year price target of $398.04 is a decrease compared to the opening price of $411.63, causing a fair amount of other analysts to report on the company recently. Share prices often trend to the upside on recommendations and new price targets of professional analysts.
Yesterday Chipotle Mexican Grill, Inc. (NYSE: CMG) shares last traded at $411.90, which represents a decrease of $2.03 over the previous closing price. Opening at $411.63, they varied from $411.33 and $414.00 throughout the day.
Chipotle Mexican Grill, Inc. (NYSE: CMG) now has a market cap of 11.92B.
Chipotle Mexican Grill, Inc. (NYSE: CMG) Average Daily Trading Volume
58,278 shares traded hands yesterday, 99 percent below the average, out of a total float 25,593,000. lower than normal. Look for trading volume to pick up in the coming days as investors often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
As with all potential breakouts, investors look for volume to be at least 40%-50% higher than normal on the breakout to show that fund managers and other professional investors are jumping in.
Institutional sponsorship commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.
Chipotle Mexican Grill, Inc. (NYSE: CMG) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By tracking the activity of these professional investors—and the moving averages they affect—it allows for traders to make more effective decisions on trades.
Trades for Chipotle Mexican Grill, Inc. (NYSE: CMG) have ranged from $352.96 – 542.50, and the stock now has a 50-day MA of $389.25 and 200-day MA of $402.36. Today’s last price is 24.07%% lower than the 52 week high of $542.50.
Earnings growth is an important factor to look at when investing in stocks and investors look for companies that have been successful at growing their earnings by at least 25% for a 3 year period.
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