Short Interest in Portillo's Inc. (NASDAQ:PTLO) Increases By 33.0%

Key Points

• Portillo's Inc. experienced a significant increase in short interest, rising by 33.0% to a total of 11 million shares as of August 31st, indicating approximately 15.8% of the stock is sold short.
• Several analysts reduced their price targets for Portillo's, with Morgan Stanley setting a target of $10.00, while others like William Blair maintained an "outperform" rating on the stock.
• Insider transactions showed buying activity, with General Counsel Kelly M. Kaiser purchasing 27,000 shares and CEO Michael Osanloo acquiring 11,320 shares, highlighting confidence in the company's prospects.

Portillo's Inc. (NASDAQ:PTLO - Get Free Report) saw a significant growth in short interest during the month of August. As of August 31st, there was short interest totaling 11,000,000 shares, a growth of 33.0% from the August 15th total of 8,270,000 shares. Based on an average trading volume of 2,930,000 shares, the days-to-cover ratio is currently 3.8 days. Approximately 15.8% of the company's shares are sold short. Approximately 15.8% of the company's shares are sold short. Based on an average trading volume of 2,930,000 shares, the days-to-cover ratio is currently 3.8 days.

Insider Buying and Selling

In other Portillo's news, CFO Michelle Greig Hook bought 40,000 shares of the business's stock in a transaction dated Thursday, August 7th. The shares were purchased at an average price of $7.67 per share, with a total value of $306,800.00. Following the completion of the purchase, the chief financial officer owned 173,405 shares in the company, valued at $1,330,016.35. This represents a 29.98% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Director Eugene I. Lee, Jr. bought 130,250 shares of the business's stock in a transaction dated Thursday, August 7th. The shares were acquired at an average cost of $7.68 per share, for a total transaction of $1,000,320.00. Following the purchase, the director owned 130,250 shares of the company's stock, valued at approximately $1,000,320. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here. Over the last ninety days, insiders purchased 210,570 shares of company stock valued at $1,614,474. Insiders own 6.14% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Northern Trust Corp grew its position in shares of Portillo's by 6.9% in the fourth quarter. Northern Trust Corp now owns 502,461 shares of the company's stock valued at $4,723,000 after purchasing an additional 32,623 shares during the last quarter. Comerica Bank grew its position in shares of Portillo's by 172.6% in the fourth quarter. Comerica Bank now owns 5,395 shares of the company's stock valued at $51,000 after purchasing an additional 3,416 shares during the last quarter. BNP Paribas Financial Markets acquired a new stake in shares of Portillo's in the fourth quarter valued at approximately $62,000. Bank of America Corp DE grew its position in shares of Portillo's by 58.0% in the fourth quarter. Bank of America Corp DE now owns 154,872 shares of the company's stock valued at $1,456,000 after purchasing an additional 56,867 shares during the last quarter. Finally, Deutsche Bank AG grew its position in shares of Portillo's by 13.7% in the fourth quarter. Deutsche Bank AG now owns 131,826 shares of the company's stock valued at $1,239,000 after purchasing an additional 15,904 shares during the last quarter. 98.34% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

PTLO has been the subject of a number of analyst reports. Morgan Stanley lowered their target price on Portillo's from $12.00 to $10.00 and set an "equal weight" rating for the company in a report on Wednesday, August 6th. Bank of America lowered their target price on Portillo's from $19.00 to $16.00 and set a "buy" rating for the company in a report on Friday, July 18th. Guggenheim decreased their price objective on Portillo's from $18.00 to $17.00 and set a "buy" rating for the company in a report on Tuesday, July 8th. Stephens set a $10.00 price objective on Portillo's in a report on Wednesday, September 10th. Finally, Robert W. Baird decreased their price objective on Portillo's from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, September 11th. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Portillo's has a consensus rating of "Moderate Buy" and a consensus target price of $12.19.

Portillo's Stock Performance

NASDAQ PTLO traded down $0.01 during trading hours on Friday, hitting $6.34. 4,244,113 shares of the stock were exchanged, compared to its average volume of 3,419,807. The company has a market cap of $477.72 million, a price-to-earnings ratio of 14.09, a price-to-earnings-growth ratio of 4.85 and a beta of 1.78. Portillo's has a 12-month low of $6.00 and a 12-month high of $15.78. The stock has a 50-day moving average of $8.15 and a 200 day moving average of $10.53. The company has a quick ratio of 0.23, a current ratio of 0.29 and a debt-to-equity ratio of 0.49.

Portillo's (NASDAQ:PTLO - Get Free Report) last posted its quarterly earnings results 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 firm had revenue of $188.46 million during the quarter, compared to analysts' expectations of $197.04 million. During the same period in the prior year, the company posted $0.10 earnings per share. The firm'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. As a group, equities research analysts forecast that Portillo's will post 0.35 earnings per share for the current year.

About Portillo's

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.