Portillo's (NASDAQ:PTLO) Upgraded to Hold at Wall Street Zen

Key Points

• Wall Street Zen upgraded Portillo’s from “sell” to “hold.” Across analysts, the consensus rating is also “hold,” with an average price target of $6.09.
• Portillo’s reported quarterly earnings of $0.06 per share, double the consensus estimate, and revenue of $194.07 million, up 7% year over year and slightly ahead of expectations.
• Following the results, DA Davidson and Stephens raised their price targets to $7, while maintaining neutral or equal-weight ratings; the company also raised its full-year outlook.

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

Several other equities research analysts have also recently commented on PTLO. Weiss Ratings reissued a "sell (d)" rating on shares of Portillo's in a research note on Friday, October 30th. UBS Group reduced their target price on shares of Portillo's from $5.50 to $4.50 and set a "neutral" rating for the company in a research note on Friday, October 9th. DA Davidson boosted their target price on shares of Portillo's from $5.00 to $7.00 and gave the stock a "neutral" rating in a research report on Friday. Robert W. Baird upgraded shares of Portillo's to a "hold" rating in a research note on Monday, August 24th. Finally, Stephens raised their price target on shares of Portillo's from $5.00 to $7.00 and gave the company an "equal weight" rating in a report on Friday. Two equities research analysts have rated the stock with a Buy rating, eight have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Portillo's has a consensus rating of "Hold" and a consensus price target of $6.09.

Portillo's Stock Down 5.4%

Shares of Portillo's stock opened at $6.64 on Friday. The stock's fifty day moving average is $4.31 and its 200-day moving average is $4.83. The firm has a market capitalization of $504.24 million, a PE ratio of 30.18, a price-to-earnings-growth ratio of 5.86 and a beta of 1.51. The company has a quick ratio of 0.20, a current ratio of 0.26 and a debt-to-equity ratio of 0.46. Portillo's has a 12-month low of $3.29 and a 12-month high of $7.02.

Portillo's (NASDAQ:PTLO - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.03. Portillo's had a net margin of 2.25% and a return on equity of 3.41%. The firm had revenue of $194.07 million for the quarter, compared to analysts' expectations of $193.18 million. During the same period in the previous year, the company posted $0.02 EPS. The company's quarterly revenue was up 7.0% compared to the same quarter last year. Equities analysts anticipate that Portillo's will post 0.19 earnings per share for the current year.

Insider Buying and Selling

In related news, Director I Jr purchased 65,355 shares of Portillo's stock in a transaction on Wednesday, August 12th. The stock was purchased at an average cost of $4.59 per share, with a total value of $299,979.45. Following the acquisition, the director directly owned 551,770 shares in the company, valued at approximately $2,532,624.30. This trade represents a 13.44% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. 6.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Portillo's

Hedge funds and other institutional investors have recently made changes to their positions in the business. Essential Partners LLC boosted its position in Portillo's by 83,350.0% in the 1st quarter. Essential Partners LLC now owns 5,007 shares of the company's stock valued at $26,000 after buying an additional 5,001 shares during the last quarter. Kestra Advisory Services LLC acquired a new stake in Portillo's during the 3rd quarter worth $68,000. Russell Investments Group Ltd. grew its stake in Portillo's by 283.1% in the second quarter. Russell Investments Group Ltd. now owns 36,556 shares of the company's stock valued at $173,000 after acquiring an additional 27,014 shares during the period. Deutsche Bank AG increased its holdings in shares of Portillo's by 29.5% in 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, Sei Investments Co. increased its holdings in shares of Portillo's by 132.1% in the first quarter. Sei Investments Co. now owns 70,622 shares of the company's stock worth $374,000 after acquiring an additional 40,200 shares in the last quarter. 98.34% of the stock is owned by institutional investors.

More Portillo's News

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

• Positive Sentiment: Portillo’s reported third-quarter adjusted earnings of $0.06 per share, ahead of analyst estimates, while revenue rose 7% year over year to $194.1 million, slightly above consensus. The company also raised its full-year outlook. Portillo’s Shares Up 20%, Raises FY Outlook
• Positive Sentiment: Management introduced a strategic reset focused on improving profitability, and positive comparable sales were seen as an encouraging early sign. Portillo's rallies after earnings and unveiling a new strategic plan
• Positive Sentiment: Analysts raised forecasts after the results. DA Davidson and Stephens each lifted their price target to $7, though both retained neutral or equal-weight ratings. Analysts Increase Forecasts
• Neutral Sentiment: A Seeking Alpha upgrade acknowledged the better comps but cautioned that Portillo’s still has work to do; the raised $7 targets also imply only limited upside from the quoted share price. Positive Comps Are a Good First Step

Portillo's Company Profile

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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