Chipotle stock price falls 98%! Here’s why CMG share is trading at $65 today

financialexpress.com:

On Wednesday, when the US stock market opens, a significant decline in Chipotle Mexican Grill’s stock price will be seen! It is not a market prediction but elementary. The fact is that Chipotle’s shares will begin trading on a post-split basis at the market open on Wednesday, June 26, 2024.

When the US stock market opens on June 26, Chipotle’s share price will trade at about $66.56. But, the closing price of Chipotle’s Nasdaq-listed shares was $3,283.04 on June 25. This means, that since yesterday’s close, Chipotle’s stock price has dropped by 98%.

However, once Chipotle’s stock begins trading on Monday, investors and shareholders do not have to worry about the sudden big drop in Chipotle’s share price. Chipotle’s 50-for-1 stock split will increase the number of shares in circulation by that amount, but as of Tuesday’s closing, the share price will be reset to one-50th of its pre-split value, or $3,283.04.

When the market opens on Wednesday, Chipotle’s shares will trade at $65.66 on a post-split basis. There will be no impact on the value of shareholders’ investments. So, do not get worried if Chipotle’s stock price falls to $65 after the market opens on June 26.

Chipotle Mexican Grill, (NYSE: CMG) had announced an increase in the number of authorized shares of its common stock, which is necessary to facilitate the company’s 50-for-1 stock split. Chipotle 50-for-1 stock split is one of the biggest stock splits in New York Stock Exchange history.

Shareholders of record as of June 18, 2024 have received 49 additional shares for each share held, which have been distributed after market close on June 25, 2024. Chipotle stock will now be more accessible to investors leading to a heightened level of interest from