Chipotle Mexican Grill’s (CMG: NYE) stock price rose in after-hours trading on Tuesday as the company announced its first-ever stock split. The company’s board of directors approved a 50-to-1 split.
Chipotle Stock Split: What Does it Mean?
Shareholders are set to vote on the 50-for-1 split at the June 6, 2024, annual meeting, with investors of record as of June 18, 2024 being assigned 49 additional shares per existing share. The stock split is planned to take effect after the market closes on June 25, 2024.
This splits aims to make the stock more accessible to a wider range of investors considering the current high share price. The enthusiastic response by investors to this announcement was clear, with a 6% rise in the stock price during after-hours trading.
Stock Target Advisor’s Analysis of Chipotle Stock:
Stock Target Advisor currently rates Chipotle’s stock as a “Buy”, with a target price of $2410.29. However, there is a projected price decrease of approximately 13.84% in the next 12 months. The company’s last closing stock price was $2,797.56.
With 21 analysts covering the stock, Chipotle holds an average rating with a viable “Strong Buy” recommendation. The target prices offered by these analysts range dramatically, from a low of $1,865 to a high of $3,016, with the average price resting at $2,421.18. The overall sector trend for Restaurants on NYE holds a “Strong Buy” rating; however, Stock Target Advisor currently rates it as “Neutral”.
Conclusion:
This announcement is a significant development for Chipotle, and the 50-for-1 split ratio is considered one of the largest in the history of the New York Stock Exchange. The news was met positively by investors, with the stock price rising around 6% in after-hours trading.
Muzzammil is a content writer at Stock Target Advisor. He has been writing stock news and analysis at Stock Target Advisor since 2023 and has worked in the financial domain in various roles since 2020. He has previously worked on an equity research firm that analyzed companies listed on the stock markets in the U.S. and Canada and performed fundamental and qualitative analyses of management strength, business strategy, and product/services forecast as indicated by major brokers covering the stock.
