Recent insider trends for Chipotle Mexican Grill, Inc. (NYSE:CMG) have caught the attention of investors. Analysts monitor insider data to understand the sentiment of a company’s largest and most important shareholders. CMG’s insider trading patterns have some implications for where the stock might be headed.
Institutions own 91.59% of Chipotle Mexican Grill, Inc. (CMG)’s shares. The total value of these holdings, in millions, is $8,176. Among active positions in the latest quarter, 258 holders increased their positions by a total of 3.43 million shares, 244 holders decreased the positions by a total of 5.07 million shares, and 119 holders held their positions. This works out to a net decrease in ownership of 1.64 million shares, and suggests that institutions are feeling bearish about the stock.
Among new and sold out positions, 83 holders initiated new positions by a total of 608145 shares and 50 holders exited their positions by a total of 301789 shares. This nets out to an increase of 306356 shares and is a bullish sign for CMG.
In the last three months, insiders executed a total of 0 trades. 0 of these were buys and 0 were sells. Insider ownership increased by a total of 0 shares, which suggests that CMG’s key executives are feeling more optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 14 buys and 1 sells, and ownership increased by a net of 2102 shares.
Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. Chipotle Mexican Grill, Inc. (NYSE:CMG)’s short interest is 4.8 million shares, or 18.65% of the float. This represents a decrease of -1% in the number of shares being shorted compared to the previous reading, and implies that investors felt less pessimistic about the stock during the past two weeks.
Given what the insider ownership patterns are saying, it makes sense to consider the technicals to see if these pieces of information reach the same conclusion about the outlook for CMG. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that CMG is a Strong sell, which implies that CMG is expected to underperform the market based on prior trading patterns.
Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bullish. Technical indicators (also) suggest that Chipotle Mexican Grill, Inc. (NYSE:CMG) is overvalued.