El Pollo Loco Holdings, Inc. (NASDAQ:LOCO) Given Consensus Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately bullish: Eight analysts rate El Pollo Loco “Moderate Buy,” with an average 12-month price target of $16.13. Recent targets range from $17 to $21, though some firms maintain neutral or hold ratings.
• Recent operating results exceeded expectations: The company reported quarterly EPS of $0.30 versus the $0.28 consensus estimate, while revenue reached $129.57 million, slightly below analyst expectations.
• Insiders have been selling while institutions hold a large stake: Insiders sold 558,803 shares worth $9.43 million over the past quarter, whereas institutional investors and hedge funds own 81.28% of the stock. El Pollo Loco also authorized a $40 million share-repurchase program covering up to 9.5% of shares.

Shares of El Pollo Loco Holdings, Inc. (NASDAQ:LOCO - Get Free Report) have received a consensus rating of "Moderate Buy" from the eight ratings firms that are presently covering the stock, MarketBeat reports. Four analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $16.1250.

Several equities analysts have recently commented on LOCO shares. Freedom Capital raised El Pollo Loco to a "strong-buy" rating in a research note on Wednesday, July 1st. Weiss Ratings raised El Pollo Loco from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, July 15th. DA Davidson boosted their price objective on shares of El Pollo Loco from $15.00 to $17.00 and gave the company a "neutral" rating in a report on Monday, August 10th. Benchmark boosted their price objective on shares of El Pollo Loco from $18.00 to $21.00 and gave the company a "buy" rating in a report on Friday, August 7th. Finally, Wall Street Zen cut shares of El Pollo Loco from a "buy" rating to a "hold" rating in a research report on Saturday, August 15th.

Insider Activity

In other news, major shareholder Sardar Biglari sold 80,000 shares of the business's stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $16.90, for a total value of $1,352,000.00. Following the sale, the insider directly owned 66,422 shares of the company's stock, valued at approximately $1,122,531.80. The trade was a 54.64% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last quarter, insiders have sold 558,803 shares of company stock valued at $9,427,504. 3.00% of the stock is currently owned by insiders.

Institutional Trading of El Pollo Loco

Institutional investors have recently added to or reduced their stakes in the stock. Hillsdale Investment Management Inc. lifted its stake in El Pollo Loco by 59.0% during the fourth quarter. Hillsdale Investment Management Inc. now owns 571,296 shares of the restaurant operator's stock worth $5,976,000 after purchasing an additional 211,900 shares in the last quarter. Corient Private Wealth LLC acquired a new stake in shares of El Pollo Loco in the fourth quarter valued at $945,000. Tieton Capital Management LLC acquired a new stake in shares of El Pollo Loco in the second quarter valued at $17,535,000. Assenagon Asset Management S.A. raised its holdings in shares of El Pollo Loco by 648.3% in the 1st quarter. Assenagon Asset Management S.A. now owns 152,767 shares of the restaurant operator's stock valued at $2,117,000 after buying an additional 132,351 shares during the period. Finally, Northwestern Mutual Wealth Management Co. raised its holdings in shares of El Pollo Loco by 11,403.7% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 115,037 shares of the restaurant operator's stock valued at $1,203,000 after buying an additional 114,037 shares during the period. Institutional investors and hedge funds own 81.28% of the company's stock.

El Pollo Loco Stock Up 4.3%

LOCO stock opened at $16.03 on Friday. El Pollo Loco has a one year low of $8.98 and a one year high of $17.40. The firm has a market cap of $487.79 million, a PE ratio of 13.70 and a beta of 0.78. The firm's 50 day moving average price is $16.10 and its 200-day moving average price is $14.07. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.38 and a current ratio of 0.41.

El Pollo Loco (NASDAQ:LOCO - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The restaurant operator reported $0.30 earnings per share for the quarter, topping the consensus estimate of $0.28 by $0.02. The company had revenue of $129.57 million during the quarter, compared to analyst estimates of $130.29 million. El Pollo Loco had a return on equity of 10.87% and a net margin of 6.96%. On average, equities research analysts anticipate that El Pollo Loco will post 0.99 EPS for the current year.

El Pollo Loco announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 28th that authorizes the company to buyback $40.00 million in shares. This buyback authorization authorizes the restaurant operator to repurchase up to 9.5% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

About El Pollo Loco

El Pollo Loco NASDAQ: LOCO is a fast-casual restaurant chain specializing in Mexican-style fire-grilled chicken and complementary menu offerings. The company's signature product is its marinated, flame-grilled chicken, which is prepared in an open-flame rotisserie and served in a variety of formats including tacos, burritos, bowls and salads. In addition to its core chicken offerings, El Pollo Loco menu items feature fresh-made salsas, guacamole, sides such as charro beans and fresh tortillas, as well as a selection of beverages and desserts.

Founded in 1975 in Guasave, Sinaloa, Mexico, by Juan Francisco Ochoa, the concept expanded into the United States in 1980 with its first U.S.

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