Portillo's (NASDAQ:PTLO) Shares Break Above 200 Day Moving Average - Time to Sell?

Key Points

• Portillo’s shares rose above their 200-day moving average, reaching $4.97 and last trading at $4.96 on above two million shares of volume.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and an average price target of $5.66; recent targets ranged from $4.50 to $5.00, while some firms maintained or issued “Sell” ratings.
• The company’s latest quarterly results met EPS expectations at $0.09, while revenue increased 5.6% year over year to $198.95 million. Portillo’s has modest profitability, weak liquidity ratios, and 98.34% institutional ownership.

Portillo's Inc. (NASDAQ:PTLO - Get Free Report) passed above its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $4.82 and traded as high as $4.97. Portillo's shares last traded at $4.96, with a volume of 2,385,265 shares changing hands.

Analysts Set New Price Targets

PTLO has been the topic of a number of recent analyst reports. Stephens restated an "equal weight" rating and issued a $5.00 price target on shares of Portillo's in a research report on Thursday, October 15th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Portillo's in a research report on Monday, August 3rd. Robert W. Baird raised shares of Portillo's to a "hold" rating in a research report on Monday, August 24th. Wall Street Zen downgraded shares of Portillo's from a "hold" rating to a "sell" rating in a research note on Saturday, October 17th. Finally, UBS Group decreased their target price on shares of Portillo's from $5.50 to $4.50 and set a "neutral" rating on the stock in a report on Friday, October 9th. Two equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $5.66.

Portillo's Price Performance

The stock has a market cap of $376.66 million, a P/E ratio of 27.56, a P/E/G ratio of 3.95 and a beta of 1.58. The company's 50 day moving average price is $4.20 and its 200-day moving average price is $4.82. The company has a quick ratio of 0.20, a current ratio of 0.26 and a debt-to-equity ratio of 0.46.

Portillo's (NASDAQ:PTLO - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $0.09 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.09. The firm had revenue of $198.95 million during the quarter, compared to analyst estimates of $199.22 million. Portillo's had a net margin of 1.85% and a return on equity of 2.78%. The company's revenue was up 5.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.12 EPS. As a group, sell-side analysts expect that Portillo's Inc. will post 0.19 earnings per share for the current year.

Insider Activity at Portillo's

In other Portillo's news, Director I Jr purchased 65,355 shares of the firm's stock in a transaction on Wednesday, August 12th. The stock was acquired at an average price of $4.59 per share, for a total transaction of $299,979.45. Following the purchase, the director owned 551,770 shares of the company's stock, valued at $2,532,624.30. This trade represents a 13.44% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this hyperlink. 6.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Portillo's

Hedge funds have recently bought and sold shares of the company. Chicago Partners Investment Group LLC raised its position in Portillo's by 1.0% in the first quarter. Chicago Partners Investment Group LLC now owns 263,381 shares of the company's stock worth $1,393,000 after acquiring an additional 2,487 shares during the period. Bank of New York Mellon Corp boosted its stake in Portillo's by 2.4% in the first quarter. Bank of New York Mellon Corp now owns 195,510 shares of the company's stock valued at $1,034,000 after acquiring an additional 4,497 shares during the last quarter. Essential Partners LLC grew its position in shares of Portillo's by 83,350.0% during the 1st quarter. Essential Partners LLC now owns 5,007 shares of the company's stock valued at $26,000 after acquiring an additional 5,001 shares during the period. Horizon Wealth Management LLC bought a new position in shares of Portillo's during the 1st quarter valued at approximately $53,000. Finally, Squarepoint Ops LLC increased its stake in shares of Portillo's by 8.7% during the 2nd quarter. Squarepoint Ops LLC now owns 131,888 shares of the company's stock worth $625,000 after purchasing an additional 10,570 shares during the last quarter. 98.34% of the stock is owned by hedge funds and other institutional investors.

Portillo's Company Profile

Portillo's, Inc operates a chain of fast-casual restaurants known for Chicago-style food. Its menu features Italian beef and Italian sausage sandwiches, Chicago-style hot dogs, hamburgers, chicken sandwiches, salads, french fries, shakes and other desserts.

The company traces its origins to 1963, when Dick Portillo opened a small hot dog stand called The Dog House in Villa Park, Illinois. Portillo's has since expanded from its Chicago-area roots into a multi-state restaurant business, with locations primarily in the United States.

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