Portillo's (NASDAQ:PTLO) Sets New 52-Week Low - Here's Why

Key Points

• Portillo's Inc. (NASDAQ:PTLO) stock reached a new 52-week low at $7.85, closing at $8.19 after trading 996,998 shares.
• Analysts have issued mixed ratings on Portillo's stock, with target prices ranging from $12.00 to $18.00, and the average rating stands at a "Moderate Buy."
• Insider trading was notable, with Berkshire Partners LLC selling 10 million shares for approximately $122.3 million, while institutional investors heavily increased their positions in the company.

Portillo's Inc. (NASDAQ:PTLO - Get Free Report) hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $7.85 and last traded at $8.19, with a volume of 996998 shares. The stock had previously closed at $9.49.

Analysts Set New Price Targets

A number of analysts have recently commented on PTLO shares. Robert W. Baird set a $8.00 target price on Portillo's in a research report on Tuesday. UBS Group cut their target price on Portillo's from $12.00 to $9.00 and set a "neutral" rating on the stock in a research report on Wednesday. Morgan Stanley cut their target price on Portillo's from $12.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Wednesday. Stephens cut their target price on Portillo's from $13.00 to $10.00 and set an "equal weight" rating on the stock in a research report on Friday. Finally, Guggenheim cut their target price on Portillo's from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, July 8th. One equities research analyst has rated the stock with a sell rating, five have issued a hold rating and five have given a buy rating to the stock. Based on data from MarketBeat.com, Portillo's has a consensus rating of "Hold" and a consensus target price of $12.50.

Portillo's Stock Down 3.9%

The firm has a 50 day moving average price of $11.02 and a two-hundred day moving average price of $12.05. The company has a quick ratio of 0.21, a current ratio of 0.29 and a debt-to-equity ratio of 0.49. The company has a market capitalization of $555.16 million, a price-to-earnings ratio of 16.49, a P/E/G ratio of 5.12 and a beta of 1.81.

Portillo's (NASDAQ:PTLO - Get Free Report) last announced its earnings results on Tuesday, August 5th. The company reported $0.12 earnings per share for the quarter, meeting the consensus estimate of $0.12. The company had revenue of $188.46 million during the quarter, compared to the consensus estimate of $197.04 million. Portillo's had a return on equity of 6.25% and a net margin of 4.19%. The company's revenue was up 3.6% on a year-over-year basis. During the same period last year, the firm earned $0.10 earnings per share. As a group, sell-side analysts expect that Portillo's Inc. will post 0.35 earnings per share for the current year.

Insider Transactions at Portillo's

In other news, General Counsel Kelly M. Kaiser purchased 27,000 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The stock was acquired at an average cost of $7.68 per share, for a total transaction of $207,360.00. Following the completion of the purchase, the general counsel owned 68,495 shares of the company's stock, valued at approximately $526,041.60. This trade represents a 65.07% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Berkshire Partners Llc sold 10,000,000 shares of Portillo's stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $12.23, for a total value of $122,300,000.00. The disclosure for this sale can be found here. Insiders have acquired a total of 197,250 shares of company stock valued at $1,514,480 over the last ninety days. 6.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Portillo's

A number of large investors have recently bought and sold shares of PTLO. CWM LLC raised its holdings in shares of Portillo's by 58.3% during the first quarter. CWM LLC now owns 3,194 shares of the company's stock valued at $38,000 after buying an additional 1,176 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of Portillo's by 4.0% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 30,742 shares of the company's stock valued at $289,000 after buying an additional 1,185 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in shares of Portillo's by 135.8% during the second quarter. PNC Financial Services Group Inc. now owns 2,596 shares of the company's stock valued at $30,000 after buying an additional 1,495 shares during the last quarter. Rhumbline Advisers increased its stake in shares of Portillo's by 2.2% during the first quarter. Rhumbline Advisers now owns 82,605 shares of the company's stock valued at $982,000 after acquiring an additional 1,744 shares during the period. Finally, North Star Investment Management Corp. increased its stake in shares of Portillo's by 137.6% during the first quarter. North Star Investment Management Corp. now owns 3,517 shares of the company's stock valued at $42,000 after acquiring an additional 2,037 shares during the period. Institutional investors own 98.34% of the company's stock.

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.