The Stock Split Is Over for Chipotle Mexican Grill and Shares Have Quickly Dropped More Than 10%. What It Means for Investors.

On June 26, restaurant company Chipotle Mexican Grill (NYSE: CMG) did a 50-for-1 stock split -- one of the largest splits investors have ever seen. Anyone who owned just two shares of the company before now owns 100, thanks to this highly publicized event.However, Chipotle stock is down about 11% from the all-time high that it reached back in June, with much of the drop happening after the stock split. In fact, it's the largest pullback for Chipotle stock in almost a year.I have reason to believe that some Chipotle shareholders bought the stock entirely because of the stock split. A 2023 study published by the Journal of Risk and Financial Management found that a stock's trading volume usually increases with a stock-split announcement. And the trading volume generally goes up enough after a split that it's reasonable to assume that there are more shareholders after the split than there were before.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool