Q2 STOCKS TO BUY

Chipotle Stock Climbs to Fresh Highs After Analyst Upgrade

The equity is eyeing its eighth-straight day of wins

Deputy Editor
Apr 12, 2021 at 11:30 AM
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The shares of Chipotle Mexican Grill Inc (NYSE:CMG) are up 1.5% to trade at $1,555 at last check, after Raymond James upgraded the stock to "outperform" from "market perform," with an $1,800 price target. The analyst in coverage cited the company's sales and current-quarter expectations. J.P. Morgan Securities chimed in as well, establishing a December 2022 price target of $1,460. 

On the charts, CMG opened at a fresh record high of $1,579.52. After bouncing off the 100-day moving average at the end of March, the equity has enjoyed quite a rally -- now eyeing its eighth-straight day of gains. 

The brokerage bunch was split on CMG coming into today, leaving plenty of room for further upgrades that could push the security higher. Of the 25 analysts in coverage, 11 still carry a tepid "hold" rating on the stock. 

Over in the options pits, 1.88 puts have been bought for every call in the last 50 days at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands higher than 89% of all other readings from the past year, indicating a stronger-than-usual penchant for puts over the past 10 weeks. 

Now looks like a good time to weigh in on the security's next move with options. The stock's Schaeffer's Volatility Index (SVI) of 32% stands higher than 17% of readings in its annual range, implying that options players are pricing in low volatility expectations at the moment. 

 

 
 

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