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

Key Points

• Engaged Capital more than doubled its Portillo’s stake by acquiring 1.91 million additional shares in the first quarter, bringing its ownership to approximately 4.54%, or $18.2 million.
• Institutional investors collectively own 98.34% of Portillo’s shares, while company director Eugene I. Lee Jr. purchased 70,165 shares at an average price of $4.28.
• Analysts maintain a consensus “Hold” rating with an average price target of $5.92. Portillo’s recently missed quarterly EPS estimates, although revenue increased 3.5% year over year.

Engaged Capital LLC increased its stake in Portillo's Inc. (NASDAQ:PTLO - Free Report) by 124.3% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 3,442,990 shares of the company's stock after acquiring an additional 1,908,000 shares during the period. Portillo's comprises about 6.0% of Engaged Capital LLC's holdings, making the stock its 6th largest holding. Engaged Capital LLC owned approximately 4.54% of Portillo's worth $18,213,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors also recently bought and sold shares of the stock. Orbis Allan Gray Ltd grew its position in Portillo's by 2.3% during the 4th quarter. Orbis Allan Gray Ltd now owns 6,994,844 shares of the company's stock worth $31,757,000 after acquiring an additional 155,205 shares during the last quarter. Alliancebernstein L.P. boosted its stake in shares of Portillo's by 16.8% during the second quarter. Alliancebernstein L.P. now owns 5,777,921 shares of the company's stock valued at $67,428,000 after purchasing an additional 830,460 shares during the period. Ameriprise Financial Inc. boosted its stake in shares of Portillo's by 4.4% during the second quarter. Ameriprise Financial Inc. now owns 3,563,600 shares of the company's stock valued at $41,587,000 after purchasing an additional 149,931 shares during the period. Millennium Management LLC purchased a new stake in shares of Portillo's during the fourth quarter valued at approximately $10,350,000. Finally, Dimensional Fund Advisors LP grew its holdings in shares of Portillo's by 11.6% in the third quarter. Dimensional Fund Advisors LP now owns 2,131,834 shares of the company's stock worth $13,750,000 after purchasing an additional 221,298 shares during the last quarter. 98.34% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Eugene I. Lee, Jr. bought 70,165 shares of the company's stock in a transaction dated Monday, May 11th. The stock was purchased at an average cost of $4.28 per share, with a total value of $300,306.20. Following the transaction, the director owned 486,415 shares in the company, valued at approximately $2,081,856.20. This trade represents a 16.86% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 6.34% of the company's stock.

Wall Street Analysts Forecast Growth

PTLO has been the subject of a number of recent analyst reports. Piper Sandler lowered their price target on shares of Portillo's from $8.00 to $6.00 and set an "overweight" rating for the company in a report on Wednesday, May 6th. Roth Capital set a $8.00 price target on shares of Portillo's in a report on Wednesday, May 6th. Stifel Nicolaus decreased their price objective on shares of Portillo's from $6.00 to $5.00 and set a "hold" rating on the stock in a research report on Wednesday, May 6th. Weiss Ratings downgraded shares of Portillo's from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, May 6th. Finally, Robert W. Baird set a $5.25 target price on shares of Portillo's in a report on Wednesday, May 6th. Two investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $5.92.

Portillo's Price Performance

PTLO opened at $4.67 on Tuesday. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.22 and a current ratio of 0.26. The stock has a market capitalization of $354.03 million, a PE ratio of 22.24, a price-to-earnings-growth ratio of 0.80 and a beta of 1.56. The stock's 50 day moving average price is $4.37 and its 200-day moving average price is $5.06. Portillo's Inc. has a 52-week low of $3.78 and a 52-week high of $10.66.

Portillo's (NASDAQ:PTLO - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported ($0.01) EPS for the quarter, missing analysts' consensus estimates of $0.01 by ($0.02). The business had revenue of $182.62 million during the quarter, compared to analysts' expectations of $183.26 million. Portillo's had a return on equity of 3.17% and a net margin of 2.12%.The business's revenue was up 3.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.05 EPS. On average, equities research analysts predict that Portillo's Inc. will post 0.23 EPS for the current year.

Portillo's Profile

Portillo’s, Inc operates a fast‐casual restaurant chain best known for its Chicago‐style menu, featuring Italian beef sandwiches, Chicago‐style hot dogs, char‐grilled burgers, salads, crinkle‐cut fries and hand‐spun milkshakes. In addition to its signature sandwiches and dogs, the company offers a selection of desserts—including its famous chocolate cake and frozen custard—as well as catering services designed to bring its Midwestern flavors to corporate and social events.

The company was founded in 1963 by Dick Portillo, who opened the first Portillo’s in Villa Park, Illinois.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.