Portillo's (NASDAQ:PTLO) Rating Lowered to Sell at Wall Street Zen

Key Points

• Wall Street Zen downgraded Portillo’s from “Hold” to “Sell,” while the broader analyst consensus remains “Hold,” with a consensus price target of $5.66.
• Portillo’s shares opened at $4.66, near the lower end of their 52-week range of $3.29 to $6.69. The company recently reported quarterly EPS of $0.09, in line with estimates, while revenue rose 5.6% year over year to $198.95 million.
• Director I Jr acquired 65,355 shares, increasing his ownership by 13.44%; institutional investors collectively own 98.34% of Portillo’s outstanding stock.

Portillo's (NASDAQ:PTLO - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

Several other research analysts have also commented on PTLO. Weiss Ratings restated a "sell (d)" rating on shares of Portillo's in a report on Monday, August 3rd. Robert W. Baird raised shares of Portillo's to a "hold" rating in a research report on Monday, August 24th. UBS Group cut their target price on shares of Portillo's from $5.50 to $4.50 and set a "neutral" rating on the stock in a research note on Friday, October 9th. Finally, Stephens reiterated an "equal weight" rating and set a $5.00 price target on shares of Portillo's in a research report on Thursday. Two research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and a consensus price target of $5.66.

Portillo's Price Performance

Shares of PTLO stock opened at $4.66 on Friday. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.20 and a current ratio of 0.26. Portillo's has a fifty-two week low of $3.29 and a fifty-two week high of $6.69. The firm has a market cap of $353.88 million, a P/E ratio of 26.61, a P/E/G ratio of 1.03 and a beta of 1.58. The business's 50 day moving average price is $4.25 and its 200-day moving average price is $4.58.

Portillo's (NASDAQ:PTLO - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $0.09 EPS for the quarter, meeting analysts' consensus estimates of $0.09. Portillo's had a return on equity of 2.78% and a net margin of 1.85%. The company had revenue of $198.95 million during the quarter, compared to the consensus estimate of $199.22 million. During the same quarter in the prior year, the company earned $0.12 earnings per share. The firm's revenue for the quarter was up 5.6% on a year-over-year basis. On average, equities research analysts anticipate that Portillo's will post 0.19 earnings per share for the current year.

Insider Transactions at Portillo's

In other news, Director I Jr acquired 65,355 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was acquired at an average price of $4.59 per share, for a total transaction of $299,979.45. Following the completion of the acquisition, the director owned 551,770 shares in the company, valued at $2,532,624.30. This trade represents a 13.44% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 6.34% of the company's stock.

Institutional Trading of Portillo's

A number of hedge funds have recently modified their holdings of the business. Engaged Capital LLC increased its stake in shares of Portillo's by 124.3% in the 1st quarter. Engaged Capital LLC now owns 3,442,990 shares of the company's stock worth $18,213,000 after acquiring an additional 1,908,000 shares in the last quarter. Corient Private Wealth LP lifted its position in Portillo's by 501.5% during the 2nd quarter. Corient Private Wealth LP now owns 269,248 shares of the company's stock valued at $1,276,000 after acquiring an additional 224,486 shares during the period. State Street Corp boosted its stake in Portillo's by 12.9% during the second quarter. State Street Corp now owns 1,454,163 shares of the company's stock worth $6,893,000 after acquiring an additional 166,617 shares in the last quarter. Deutsche Bank AG boosted its stake in Portillo's by 29.5% during the second quarter. Deutsche Bank AG now owns 65,667 shares of the company's stock worth $311,000 after acquiring an additional 14,973 shares in the last quarter. Finally, Bank of America Corp DE boosted its stake in Portillo's by 3.3% during the first quarter. Bank of America Corp DE now owns 704,602 shares of the company's stock worth $3,727,000 after acquiring an additional 22,744 shares in the last quarter. Institutional investors own 98.34% of the company's stock.

Portillo's Company Profile

Portillo's, Inc operates a chain of fast-casual restaurants known for Chicago-style food. Its menu features Chicago-style hot dogs, Italian beef and sausage sandwiches, burgers, chicken sandwiches, salads, French fries, milkshakes and its signature chocolate cake.

The company serves customers through company-operated restaurants, drive-thru lanes, takeout and delivery services, as well as catering. Portillo's restaurants are concentrated in the Midwest and have expanded into select Sun Belt markets, including Arizona and Florida.

Portillo's traces its origins to 1963, when founder Dick Portillo opened a small hot dog stand called The Dog House in Villa Park, Illinois.

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