El Pollo Loco (NASDAQ:LOCO) Stock Breaks Above Fifty Day Moving Average - Here's Why

Key Points

• El Pollo Loco shares rose above their 50-day moving average, reaching $15.15 and last trading near $15.01, up 2.7%. The stock’s 200-day moving average is $14.03.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and an average price target of $17.30. Recent targets include Roth Capital’s $22 and Benchmark’s $21.
• The company exceeded quarterly earnings expectations with EPS of $0.30 versus a $0.28 consensus estimate, although revenue of $129.57 million fell slightly short of forecasts. Insiders have sold 126,656 shares worth about $2.13 million over the past 90 days.

El Pollo Loco Holdings, Inc. (NASDAQ:LOCO - Get Free Report)'s stock price passed above its fifty day moving average during trading on Wednesday. The stock has a fifty day moving average of $15.00 and traded as high as $15.15. El Pollo Loco shares last traded at $15.01, with a volume of 266,565 shares traded.

Wall Street Analysts Forecast Growth

Several brokerages recently weighed in on LOCO. Freedom Capital raised shares of El Pollo Loco to a "strong-buy" rating in a research report on Wednesday, July 1st. Roth Capital began coverage on shares of El Pollo Loco in a research report on Friday, October 9th. They issued a "buy" rating and a $22.00 target price for the company. Wall Street Zen lowered shares of El Pollo Loco from a "buy" rating to a "hold" rating in a research note on Saturday, August 15th. Benchmark increased their price target on shares of El Pollo Loco from $18.00 to $21.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, Weiss Ratings upgraded shares of El Pollo Loco from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $17.30.

El Pollo Loco Stock Up 2.7%

The business's 50 day moving average is $15.00 and its 200-day moving average is $14.03. The company has a debt-to-equity ratio of 0.10, a quick ratio of 0.38 and a current ratio of 0.41. The firm has a market capitalization of $456.75 million, a price-to-earnings ratio of 12.83 and a beta of 0.77.

El Pollo Loco (NASDAQ:LOCO - Get Free Report) last announced its earnings results on Thursday, August 6th. The restaurant operator reported $0.30 EPS for the quarter, topping the consensus estimate of $0.28 by $0.02. The firm had revenue of $129.57 million for the quarter, compared to the consensus estimate of $130.29 million. El Pollo Loco had a net margin of 6.96% and a return on equity of 10.87%. Equities analysts anticipate that El Pollo Loco Holdings, Inc. will post 0.99 EPS for the current fiscal year.

Insider Activity

In other news, major shareholder Sardar Biglari sold 25,556 shares of El Pollo Loco stock in a transaction dated Friday, October 16th. The stock was sold at an average price of $16.50, for a total value of $421,674.00. Following the transaction, the insider directly owned 3,513,405 shares in the company, valued at approximately $57,971,182.50. The trade was a 0.72% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders sold 126,656 shares of company stock valued at $2,127,040 over the last 90 days. Company insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On El Pollo Loco

Several large investors have recently made changes to their positions in the business. Signaturefd LLC increased its position in El Pollo Loco by 419.9% during the third quarter. Signaturefd LLC now owns 2,563 shares of the restaurant operator's stock worth $37,000 after acquiring an additional 2,070 shares during the period. Ellsworth Advisors LLC bought a new stake in El Pollo Loco in the 3rd quarter valued at $972,000. Assenagon Asset Management S.A. boosted its holdings in El Pollo Loco by 0.3% in the 3rd quarter. Assenagon Asset Management S.A. now owns 302,399 shares of the restaurant operator's stock valued at $4,339,000 after purchasing an additional 894 shares during the period. Squarepoint Ops LLC boosted its holdings in El Pollo Loco by 60.2% in the 2nd quarter. Squarepoint Ops LLC now owns 18,927 shares of the restaurant operator's stock valued at $321,000 after purchasing an additional 7,113 shares during the period. Finally, Headlands Technologies LLC acquired a new stake in El Pollo Loco in the 2nd quarter worth $486,000. Institutional investors and hedge funds own 81.28% of the company's stock.

El Pollo Loco Company Profile

El Pollo Loco Holdings, Inc NASDAQ: LOCO operates and franchises quick-service restaurants specializing in Mexican-inspired food and citrus-marinated, fire-grilled chicken. Its menu includes chicken meals, burritos, tacos, quesadillas, salads, bowls and family meals, along with a variety of sides, beverages and desserts.

The company was founded in 1975 in Guasave, Sinaloa, Mexico, and expanded into the United States in 1980 with its first restaurant in Los Angeles. El Pollo Loco primarily serves customers through restaurants in the western and southwestern United States, particularly in California, Arizona, Nevada, Colorado and Texas.

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