UBS Group Has Lowered Expectations for Portillo's (NASDAQ:PTLO) Stock Price

Key Points

• UBS Group has reduced its target price for Portillo's (NASDAQ: PTLO) from $12.00 to $9.00, indicating a potential upside of 17.88% from the current stock price.
• Multiple analysts have provided mixed ratings on Portillo's, with five analysts holding a "buy" rating and five giving a "hold" rating, resulting in an average consensus price target of $13.13.
• Portillo's reported a net margin of 3.92% and revenue of $188.46 million during its last quarterly earnings, which fell short of analysts' expectations.

Portillo's (NASDAQ:PTLO - Free Report) had its price objective cut by UBS Group from $12.00 to $9.00 in a report released on Wednesday,Benzinga reports. They currently have a neutral rating on the stock.

A number of other research analysts have also recently commented on the stock. Robert W. Baird set a $8.00 price target on shares of Portillo's in a research note on Tuesday, August 5th. Guggenheim lowered their target price on shares of Portillo's from $18.00 to $17.00 and set a "buy" rating on the stock in a report on Tuesday, July 8th. Stephens reaffirmed an "equal weight" rating and issued a $13.00 target price on shares of Portillo's in a report on Wednesday, May 7th. Piper Sandler decreased their price objective on shares of Portillo's from $17.00 to $13.00 and set an "overweight" rating on the stock in a report on Wednesday, May 7th. Finally, Bank of America decreased their price objective on shares of Portillo's from $19.00 to $16.00 and set a "buy" rating on the stock in a report on Friday, July 18th. One research analyst has rated the stock with a sell rating, five have given a hold rating and five have given a buy rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average price target of $12.50.

Portillo's Stock Performance

PTLO stock traded down $0.30 on Wednesday, reaching $7.42. 5,206,006 shares of the company were exchanged, compared to its average volume of 3,604,777. Portillo's has a 12 month low of $7.20 and a 12 month high of $15.78. The stock's fifty day moving average price is $11.02 and its 200 day moving average price is $12.05. The firm has a market capitalization of $555.16 million, a PE ratio of 16.49, a PEG ratio of 5.12 and a beta of 1.81. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.29 and a quick ratio of 0.23.

Portillo's (NASDAQ:PTLO - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.12 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.12. The business had revenue of $188.46 million for the quarter, compared to analysts' expectations of $197.04 million. Portillo's had a return on equity of 6.25% and a net margin of 4.19%. Portillo's's quarterly revenue was up 3.6% on a year-over-year basis. During the same period in the previous year, the business posted $0.10 earnings per share. On average, research analysts anticipate that Portillo's will post 0.35 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Eugene I. Lee, Jr. purchased 130,250 shares of Portillo's stock in a transaction on Thursday, August 7th. The stock was acquired at an average cost of $7.68 per share, for a total transaction of $1,000,320.00. Following the completion of the acquisition, the director owned 130,250 shares of the company's stock, valued at $1,000,320. This trade represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Michelle Greig Hook purchased 40,000 shares of Portillo's stock in a transaction on Thursday, August 7th. The stock was bought at an average price of $7.67 per share, with a total value of $306,800.00. Following the completion of the acquisition, the chief financial officer directly owned 173,405 shares of the company's stock, valued at approximately $1,330,016.35. This trade represents a 29.98% increase in their position. The disclosure for this purchase can be found here. Insiders purchased 197,250 shares of company stock valued at $1,514,480 in the last ninety days. Insiders own 6.14% of the company's stock.

Hedge Funds Weigh In On Portillo's

A number of institutional investors have recently modified their holdings of the company. PNC Financial Services Group Inc. grew its stake in Portillo's by 135.8% in the 2nd quarter. PNC Financial Services Group Inc. now owns 2,596 shares of the company's stock valued at $30,000 after purchasing an additional 1,495 shares during the period. Allworth Financial LP bought a new position in shares of Portillo's in the second quarter worth approximately $32,000. CWM LLC lifted its holdings in shares of Portillo's by 58.3% during the 1st quarter. CWM LLC now owns 3,194 shares of the company's stock worth $38,000 after acquiring an additional 1,176 shares during the last quarter. North Star Investment Management Corp. increased its position in shares of Portillo's by 137.6% during the 1st quarter. North Star Investment Management Corp. now owns 3,517 shares of the company's stock valued at $42,000 after purchasing an additional 2,037 shares during the last quarter. Finally, Comerica Bank lifted its stake in shares of Portillo's by 172.6% in the 4th quarter. Comerica Bank now owns 5,395 shares of the company's stock valued at $51,000 after acquiring an additional 3,416 shares during the last quarter. 98.34% of the stock is owned by institutional investors and hedge funds.

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.