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

Key Points

• Wall Street Zen downgraded Portillo’s to “Sell” from “Hold,” although the broader analyst consensus remains “Hold,” with an average price target of $5.66.
• Portillo’s shares opened at $4.87, with a market capitalization of approximately $369.8 million and a one-year trading range of $3.29 to $6.69.
• The company met quarterly earnings expectations at $0.09 per share, while revenue rose 5.6% year over year to $198.95 million; a director also purchased nearly $300,000 worth of shares.

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

A number of other equities analysts have also commented on PTLO. Robert W. Baird upgraded shares of Portillo's to a "hold" rating in a report on Monday, August 24th. UBS Group decreased their price objective on shares of Portillo's from $5.50 to $4.50 and set a "neutral" rating for the company in a research report on Friday, October 9th. Weiss Ratings restated a "sell (d)" rating on shares of Portillo's in a research note on Monday, August 3rd. Finally, Stephens reaffirmed an "equal weight" rating and set a $5.00 target price on shares of Portillo's in a research report on Thursday, October 15th. Two analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $5.66.

Portillo's Stock Performance

Portillo's stock opened at $4.87 on Friday. The stock's 50 day moving average price is $4.20 and its 200 day moving average price is $4.82. The firm has a market capitalization of $369.83 million, a PE ratio of 27.56, a price-to-earnings-growth ratio of 4.38 and a beta of 1.58. 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 one year low of $3.29 and a one year high of $6.69.

Portillo's (NASDAQ:PTLO - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.09 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.09. The company had revenue of $198.95 million during the quarter, compared to the consensus estimate of $199.22 million. Portillo's had a net margin of 1.85% and a return on equity of 2.78%. Portillo's's revenue for the quarter was up 5.6% on a year-over-year basis. During the same quarter last year, the company earned $0.12 earnings per share. As a group, sell-side analysts expect that Portillo's will post 0.19 EPS for the current fiscal year.

Insider Buying and Selling at Portillo's

In related news, Director I Jr purchased 65,355 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was acquired at an average price of $4.59 per share, with a total value of $299,979.45. Following the completion of the transaction, the director owned 551,770 shares of the company's stock, valued at $2,532,624.30. This represents a 13.44% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 6.34% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the stock. Engaged Capital LLC raised 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 valued at $18,213,000 after purchasing an additional 1,908,000 shares in the last quarter. Corient Private Wealth LP lifted its position in shares of Portillo's by 501.5% during the second quarter. Corient Private Wealth LP now owns 269,248 shares of the company's stock worth $1,276,000 after purchasing an additional 224,486 shares during the last quarter. State Street Corp grew its stake in Portillo's by 12.9% in the second quarter. State Street Corp now owns 1,454,163 shares of the company's stock worth $6,893,000 after purchasing an additional 166,617 shares in the last quarter. Capstone Financial Advisors Inc. grew its stake in Portillo's by 34.0% in the second quarter. Capstone Financial Advisors Inc. now owns 78,745 shares of the company's stock worth $373,000 after purchasing an additional 20,000 shares in the last quarter. Finally, Squarepoint Ops LLC grew its stake in Portillo's by 8.7% in the second quarter. Squarepoint Ops LLC now owns 131,888 shares of the company's stock worth $625,000 after purchasing an additional 10,570 shares in the last quarter. 98.34% of the stock is currently owned by institutional investors.

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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