Why Chipotle Stock Tanked Thursday Just After Its Stock Split
Chipotle Mexican Grill (NYSE: CMG) has been one tasty quesadilla of a stock on the exchange over the years. The fast-casual restaurant chain operator didn't have a good session on the market Thursday, however. Its shares fell more than 5% in value, which wasn't unusual given what happened the previous day.
Chipotle investors started Wednesday with a much higher number of shares than they held previously. Of course, this was due to the 50-for-1 stock split that kicked in that morning.
That ratio is pretty high -- most stock splits are more in the 10-for-1 range or so -- but it feels like a good move given how pricey the restaurant operator became on a per-share basis. A cheaper stock is a more attractive one, and it's likely many investors piled into Chipotle recently in the hopes that its popularity would surge post-split.
Source Fool.com
Chipotle Mexican Grill Inc. Stock
The stock is an absolute favorite of our community with 72 Buy predictions and no Sell predictions.
With a target price of 63 € there is a positive potential of 40.64% for Chipotle Mexican Grill Inc. compared to the current price of 44.8 €.
