Portillo's Inc. (NASDAQ:PTLO) Stock Has Consensus Target Price of $6.09

Key Points

• Analyst sentiment is mostly neutral: Eight of 11 brokerages rate Portillo’s “Hold,” while one says “Sell” and two say “Buy”; the average 12-month price target is $6.09.
• Portillo’s beat third-quarter earnings estimates with adjusted EPS of $0.06 and revenue up 7% to $194.1 million, and raised its full-year outlook.
• Management unveiled a strategic reset aimed at improving profitability. Some analysts raised price targets to $7 but maintained neutral or equal-weight ratings.

Portillo's Inc. (NASDAQ:PTLO - Get Free Report) has been assigned an average rating of "Hold" from the eleven brokerages that are covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, eight have given a hold rating and two have issued a buy rating on the company. The average 1 year price objective among brokerages that have issued a report on the stock in the last year is $6.09.

Several equities research analysts have issued reports on the company. Stephens lifted their price objective on Portillo's from $5.00 to $7.00 and gave the stock an "equal weight" rating in a report on Friday. Wall Street Zen raised Portillo's from a "sell" rating to a "hold" rating in a research report on Sunday. UBS Group reduced their target price on Portillo's from $5.50 to $4.50 and set a "neutral" rating for the company in a research note on Friday, October 9th. Robert W. Baird upgraded Portillo's to a "hold" rating in a research note on Monday, August 24th. Finally, Weiss Ratings reissued a "sell (d)" rating on shares of Portillo's in a research report on Friday, October 30th.

Key Stories Impacting Portillo's

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 Price Performance

Shares of Portillo's stock opened at $6.64 on Monday. The business has a 50-day moving average of $4.31 and a 200-day moving average of $4.83. The company has a debt-to-equity ratio of 0.46, a current ratio of 0.26 and a quick ratio of 0.20. The company has a market capitalization of $504.24 million, a PE ratio of 30.18, a P/E/G ratio of 5.86 and a beta of 1.51. Portillo's has a 1-year low of $3.29 and a 1-year high of $7.02.

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

Insider Transactions at Portillo's

In related news, Director I Jr purchased 65,355 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were purchased 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 directly owned 551,770 shares of the company's stock, valued at approximately $2,532,624.30. The trade was a 13.44% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 6.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Portillo's

Hedge funds and other institutional investors have recently modified their holdings of the stock. Engaged Capital LLC raised its stake 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 in the last quarter. State Street Corp lifted its holdings in Portillo's by 12.9% during the 2nd quarter. State Street Corp now owns 1,454,163 shares of the company's stock worth $6,893,000 after buying an additional 166,617 shares during the last quarter. Bank of America Corp DE grew its position in shares of Portillo's by 3.3% in the 1st 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. Corient Private Wealth LP grew its position in shares of Portillo's by 501.5% in the 2nd quarter. Corient Private Wealth LP now owns 269,248 shares of the company's stock worth $1,276,000 after acquiring an additional 224,486 shares in the last quarter. Finally, Chicago Partners Investment Group LLC grew its position in shares of Portillo's by 1.0% in the 1st 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 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 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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