Chipotle Mexican Grill, Inc. (CMG) stock moves up, “Neutral” rating reaffirmed by Credit Suisse Group Analysts

Chipotle Mexican Grill, Inc. (NYSE: CMG) shares rose on Friday January 13 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, The Dow Jones Industrial Average DJIA, -0.03% slipped 5.27 points to close 19,885.73, moving in a roughly 100-point range all session. For the week, the blue-chip index is off 0.4%.

U.S. financial markets will be closed Monday for Martin Luther King Jr. Day.

The S&P 500 index SPX, +0.18% added 4.20 points, or 0.2%, to end at 2,274.64 for a weekly loss of 0.1%, and the Nasdaq Composite Index COMP, +0.48% climbed 26.63 points, or 0.5%, to finish at 5,574.12, its sixth all-time closing high in seven trading sessions.

Stock Picks and Investing in the Stock Market

Analysts at Credit Suisse Group reiterated a Neutral rating on shares of Chipotle Mexican Grill, Inc. (NYSE: CMG) in a reserach note to investors, making it one of the more closely watched stocks on Wall Street. 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 $409.93, causing a fair amount of other analysts to report on the stock in recent days. Typically, after analysts publish a “reiterated rating” report on a stock, they will subsequently issue other updates, often followed by a price target change.

Yesterday Chipotle Mexican Grill, Inc. (NYSE: CMG) shares last traded at $410.75, an increase of $1.40 from the previous closing price. Opening at $409.93, they ranged from $409.01 and $413.95 throughout the day.

Chipotle Mexican Grill, Inc. (NYSE: CMG) now has a market cap of 11.89B.

Chipotle Mexican Grill, Inc. (NYSE: CMG) Average Daily Trading Volume

The stock’s average daily volume is 1,301,650 shares out of a total float 25,593,000 and some 572,714 shares traded hands yesterday, 26 percent lower than the norm. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use upticks in trading volume to identify heavy volume accumulation or distribution by institutional investors.

While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.

Institutional sponsorship just refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Professional investors such as these retain substantial teams of analysts researching thousands of stocks, so it is good confirmation to see them buying a stock you are considering.

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 spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of successful 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 $389.86 and 200-day MA of $402.56. Today’s last price is 24.29%% below the 52 week high of $542.50.

Indeed, earnings growth is among the most critical things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% over a 3 year period.

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