Portillo's (NASDAQ:PTLO) Given New $7.00 Price Target at DA Davidson

Key Points

• DA Davidson raised its price target on Portillo’s from $5 to $7 while maintaining a Neutral rating; the new target is about 0.3% below the shares’ $7.02 Friday opening price.
• Analyst sentiment remains cautious overall: MarketBeat reports a consensus Hold rating and an average price target of $6.09, with two Buy, eight Hold, and one Sell rating.
• Portillo’s beat quarterly earnings estimates, reporting $0.06 per share versus roughly $0.03 expected, while revenue rose 7% year over year to $194.1 million; the company also raised its full-year outlook.

Portillo's (NASDAQ:PTLO - Get Free Report) had its price objective boosted by stock analysts at DA Davidson from $5.00 to $7.00 in a report issued on Friday, Benzinga reports. The firm currently has a "neutral" rating on the stock. DA Davidson's price target points to a potential downside of 0.28% from the company's current price.

Several other brokerages have also recently issued reports on PTLO. Robert W. Baird raised shares of Portillo's to a "hold" rating in a report on Monday, August 24th. Weiss Ratings restated a "sell (d)" rating on shares of Portillo's in a research report on Friday, October 30th. Wall Street Zen lowered shares of Portillo's from a "hold" rating to a "sell" rating in a report on Saturday, October 31st. UBS Group lowered their price target on shares of Portillo's from $5.50 to $4.50 and set a "neutral" rating on the stock in a report on Friday, October 9th. Finally, Stephens increased their price target on Portillo's from $5.00 to $7.00 and gave the stock an "equal weight" rating in a research report on Friday. Two investment analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $6.09.

Portillo's Price Performance

Shares of NASDAQ:PTLO opened at $7.02 on Friday. Portillo's has a twelve month low of $3.29 and a twelve month high of $7.02. The company has a current ratio of 0.26, a quick ratio of 0.20 and a debt-to-equity ratio of 0.46. The company has a market cap of $533.12 million, a PE ratio of 39.00, a price-to-earnings-growth ratio of 4.81 and a beta of 1.51. The company's 50 day moving average is $4.26 and its 200 day moving average is $4.83.

Portillo's (NASDAQ:PTLO - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.06 EPS for the quarter, beating the consensus estimate of $0.03 by $0.03. The business had revenue of $194.07 million during the quarter, compared to analysts' expectations of $193.18 million. Portillo's had a net margin of 1.85% and a return on equity of 2.78%. The business's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.02 EPS. On average, sell-side analysts forecast that Portillo's will post 0.19 EPS for the current year.

Insider Transactions at Portillo's

In related news, Director I Jr purchased 65,355 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was bought at an average cost of $4.59 per share, with a total value of $299,979.45. Following the completion of the acquisition, the director owned 551,770 shares of the company's stock, valued at $2,532,624.30. The trade was a 13.44% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 6.34% of the company's stock.

Hedge Funds Weigh In On Portillo's

Institutional investors have recently made changes to their positions in the company. Engaged Capital LLC grew its position in Portillo's by 124.3% during the first quarter. Engaged Capital LLC now owns 3,442,990 shares of the company's stock valued at $18,213,000 after buying an additional 1,908,000 shares during the period. State Street Corp increased its holdings in Portillo's by 12.9% in the second quarter. State Street Corp now owns 1,454,163 shares of the company's stock valued at $6,893,000 after buying an additional 166,617 shares in the last quarter. Bank of America Corp DE increased its holdings in Portillo's by 3.3% in the first quarter. Bank of America Corp DE now owns 704,602 shares of the company's stock valued at $3,727,000 after buying an additional 22,744 shares in the last quarter. Corient Private Wealth LP increased its holdings in Portillo's by 501.5% in the second quarter. Corient Private Wealth LP now owns 269,248 shares of the company's stock valued at $1,276,000 after buying an additional 224,486 shares in the last quarter. Finally, Chicago Partners Investment Group LLC raised its position in shares of Portillo's by 1.0% in the first quarter. Chicago Partners Investment Group LLC now owns 263,381 shares of the company's stock worth $1,393,000 after acquiring an additional 2,487 shares during the period. 98.34% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting Portillo's

Here are the key news stories impacting Portillo's this week:

• Positive Sentiment: Portillo’s reported Q3 earnings of $0.06 per share, above analyst estimates of roughly $0.03–$0.04 and up from $0.02 a year earlier. Revenue of $194.1 million was slightly ahead of estimates and increased 7% year over year. Portillo’s Q3 earnings report
• Positive Sentiment: The company raised its full-year outlook, providing investors with a more favorable earnings forecast. Portillo’s raises FY outlook
• Positive Sentiment: Portillo’s unveiled a new strategic plan, which helped drive investor enthusiasm alongside the earnings beat and higher outlook. The available reports describe a strategy reset but do not specify its full details. Portillo’s strategic plan

About Portillo's

Portillo's, Inc operates a chain of fast-casual restaurants known for Chicago-style food. Its menu features Italian beef and Italian sausage sandwiches, Chicago-style hot dogs, hamburgers, chicken sandwiches, salads, french fries, shakes and other desserts.

The company traces its origins to 1963, when Dick Portillo opened a small hot dog stand called The Dog House in Villa Park, Illinois. Portillo's has since expanded from its Chicago-area roots into a multi-state restaurant business, with locations primarily in the United States.

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