Portillo's Inc. $PTLO Position Decreased by Engaged Capital LLC

Key Points

• Engaged Capital LLC has reduced its stake in Portillo's Inc. by 10.4% in the first quarter, now holding approximately 5.48 million shares valued at $65.15 million.
• Portillo's stock is currently trading at $6.79 and has seen a 1.6% decline recently, with a market capitalization of approximately $511.63 million.
• Insider purchases were made by CFO Michelle Greig Hook and CEO Michael Osanloo, indicating a combined increase in ownership by over 21% and showcasing confidence in the company's future.

Engaged Capital LLC trimmed its position in Portillo's Inc. (NASDAQ:PTLO - Free Report) by 10.4% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 5,479,771 shares of the company's stock after selling 635,185 shares during the quarter. Portillo's makes up 16.6% of Engaged Capital LLC's investment portfolio, making the stock its 2nd largest position. Engaged Capital LLC owned approximately 7.35% of Portillo's worth $65,154,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Alliancebernstein L.P. raised its holdings in shares of Portillo's by 10,963.2% in the 1st quarter. Alliancebernstein L.P. now owns 4,947,461 shares of the company's stock valued at $58,825,000 after purchasing an additional 4,902,741 shares in the last quarter. AQR Capital Management LLC acquired a new stake in shares of Portillo's in the 1st quarter valued at $318,000. Cubist Systematic Strategies LLC acquired a new stake in shares of Portillo's in the 1st quarter valued at $1,236,000. Royal Bank of Canada raised its holdings in shares of Portillo's by 731.1% in the 1st quarter. Royal Bank of Canada now owns 156,710 shares of the company's stock valued at $1,864,000 after purchasing an additional 137,854 shares in the last quarter. Finally, MAI Capital Management acquired a new stake in shares of Portillo's in the 1st quarter valued at $101,000. 98.34% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. William Blair restated an "outperform" rating on shares of Portillo's in a report on Friday, May 30th. Morgan Stanley dropped their target price on shares of Portillo's from $12.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Wednesday, August 6th. Stephens dropped their target price on shares of Portillo's from $13.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Friday, August 8th. UBS Group dropped their target price on shares of Portillo's from $12.00 to $9.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Finally, Bank of America dropped their target price on shares of Portillo's from $19.00 to $16.00 and set a "buy" rating on the stock in a research report on Friday, July 18th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $12.50.

Portillo's Stock Performance

Portillo's stock traded down $0.22 during midday trading on Monday, hitting $6.60. 3,959,893 shares of the company's stock were exchanged, compared to its average volume of 2,234,602. Portillo's Inc. has a 12-month low of $6.56 and a 12-month high of $15.78. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.23 and a current ratio of 0.29. The stock has a market cap of $497.30 million, a price-to-earnings ratio of 14.67, a price-to-earnings-growth ratio of 4.71 and a beta of 1.78. The firm's 50 day simple moving average is $9.27 and its 200 day simple moving average is $11.05.

Portillo's (NASDAQ:PTLO - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.12 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.12. Portillo's had a net margin of 4.19% and a return on equity of 6.25%. The company had revenue of $188.46 million for the quarter, compared to the consensus estimate of $197.04 million. During the same period last year, the firm posted $0.10 EPS. Portillo's's revenue for the quarter was up 3.6% on a year-over-year basis. Portillo's has set its FY 2025 guidance at EPS. Equities research analysts predict that Portillo's Inc. will post 0.35 EPS for the current year.

Insider Buying and Selling at Portillo's

In other news, CEO Michael Osanloo bought 11,320 shares of the stock in a transaction dated Friday, August 8th. The shares were acquired at an average price of $7.42 per share, with a total value of $83,994.40. Following the completion of the acquisition, the chief executive officer directly owned 63,317 shares in the company, valued at approximately $469,812.14. The trade was a 21.77% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Eugene I. Lee, Jr. bought 130,250 shares of the stock in a transaction dated Thursday, August 7th. The stock was purchased at an average cost of $7.68 per share, for a total transaction of $1,000,320.00. Following the acquisition, the director owned 130,250 shares of the company's stock, valued at approximately $1,000,320. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Over the last 90 days, insiders purchased 210,570 shares of company stock valued at $1,614,474. Company insiders own 6.14% of the company's stock.

Portillo's Company Profile

Portillo's Inc owns and operates fast casual restaurants in the United States. The company offers Chicago-style hot dogs and sausages, Italian beef sandwiches, char-grilled burgers, chopped salads, crinkle-cut French fries, homemade chocolate cakes, and chocolate cake shake. It offers its products through its website, application, and certain third-party platforms.