Chipotle Mexican Grill Inc. (NYSE: CMG) Stock Gets Downgraded at Zacks Investment Research

Shares of Chipotle Mexican Grill Inc. (NYSE: CMG) were downgraded by analysts at Zacks Investment Research in a note to their investors today. With a rating of Strong Sell on the stock, Chipotle Mexican Grill Inc. has a 52-week high of $757.00. The one-year price target of $7.40 is less than the opening price of $402.76, that has caused a number of other analysts to comment on the company recently. Important and crucial digressions in the company’s operations, future direction or industry can cause downgrades as the analysts consider that the future prospects for the security have weakened from the initial recommendation.

U.S. stocks closed higher Tuesday as investors anticipate the results of meetings from the Federal Reserve and the Bank of Japan.

The Dow Jones Industrial Average DJIA, +0.05% rose 9.79 points, or less than 0.1%, to close at 18,129.96.

The S&P 500 index SPX, +0.03% advanced 0.64 points to finish at 2,139.76, led by gains in the health-care and consumer-staples sectors.

The Nasdaq Composite index COMP, +0.12% gained 6.33 points, or 0.1%, to close at 5,241.35.

Yesterday Chipotle Mexican Grill Inc. (NYSE: CMG) shares last traded at $400.42, a drop of $2.34 over the previous closing price. Opening at $402.76, they ranged from $395.11 and $404.90 throughout the day.

Chipotle Mexican Grill Inc. (NYSE: CMG) now has a market cap of 11.66B.

1,490,731 shares crossed the trading desk yesterday, 43 percent above the average, out of a total float 25,760,000. Considerable volume aggregation by institutional investors may be in the near future as the combination of substantial gains in trading volume and price growth can be deciding factors.

While higher trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a series 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 commonly refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.

Institutional investors such as these have substantial teams of analysts that investigate thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

By spotting trends, moving averages allow traders to make those trends work in their favor and increase the number of winning trades.

With that in mind, Chipotle Mexican Grill Inc. (NYSE: CMG) now has a 50-day MA of $408.07 and 200-day MA of $431.75. It has traded in a 52-week range between $384.77 – 757.00 and today’s last price is 0.47% lower than the 52 week high of $757.00.

Indeed, earnings growth is among the most crucial things to look at in regards to stock investing and, accordingly, investors seek companies that have raised their earnings by at least 25% for 3 consecutive years.

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