Weiss Ratings Reiterates "Sell (D+)" Rating for Portillo's (NASDAQ:PTLO)

Key Points

• Weiss Ratings has reissued a "Sell (D+)" rating for Portillo's (NASDAQ:PTLO) amid reports from multiple analysts lowering price targets, with Morgan Stanley setting a target of $10.00.
• Portillo's shares have seen a 1.3% decline, currently trading at $6.26, with a market cap of approximately $471.68 million.
• Recent insider trading activity includes the purchase of 130,250 shares by Director Eugene I. Lee, Jr., indicating increased confidence in the company amidst its fluctuating stock performance.

Portillo's (NASDAQ:PTLO - Get Free Report)'s stock had its "sell (d+)" rating reissued by Weiss Ratings in a research report issued on Wednesday,Weiss Ratings reports.

Other equities analysts have also issued reports about the stock. Morgan Stanley dropped their price target on shares of Portillo's from $12.00 to $10.00 and set an "equal weight" rating for the company in a research report on Wednesday, August 6th. Robert W. Baird lowered their target price on shares of Portillo's from $8.00 to $7.00 and set a "neutral" rating for the company in a report on Thursday, September 11th. Stephens reaffirmed an "equal weight" rating and issued a $10.00 price target on shares of Portillo's in a research note on Tuesday, September 23rd. Wall Street Zen cut shares of Portillo's from a "hold" rating to a "sell" rating in a report on Saturday, August 9th. Finally, Guggenheim cut their target price on shares of Portillo's from $18.00 to $17.00 and set a "buy" rating on the stock in a research report on Tuesday, July 8th. Four analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $11.06.

Portillo's Trading Down 1.3%

Shares of NASDAQ PTLO opened at $6.26 on Wednesday. The company has a debt-to-equity ratio of 0.49, a current ratio of 0.29 and a quick ratio of 0.23. The stock has a market cap of $471.68 million, a P/E ratio of 13.91, a price-to-earnings-growth ratio of 5.07 and a beta of 1.75. Portillo's has a 1 year low of $6.00 and a 1 year high of $15.78. The firm has a 50-day moving average of $7.01 and a 200 day moving average of $9.96.

Portillo's (NASDAQ:PTLO - Get Free Report) last issued its 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 business had revenue of $188.46 million during the quarter, compared to analysts' expectations of $197.04 million. During the same period in the previous year, the company earned $0.10 earnings per share. The business's revenue for the quarter was up 3.6% compared to the same quarter last year. Portillo's has set its FY 2025 guidance at EPS. As a group, sell-side analysts expect that Portillo's will post 0.35 EPS for the current fiscal year.

Insider Activity

In related news, Director Eugene I. Lee, Jr. acquired 130,250 shares of Portillo's stock in a transaction dated Thursday, August 7th. The stock was acquired at an average price of $7.68 per share, for a total transaction of $1,000,320.00. Following the transaction, the director owned 130,250 shares of the company's stock, valued at $1,000,320. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, General Counsel Kelly M. Kaiser bought 27,000 shares of the business's stock in a transaction dated 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 acquisition, the general counsel directly owned 68,495 shares in the company, valued at approximately $526,041.60. This trade represents a 65.07% increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have purchased 210,570 shares of company stock worth $1,614,474 over the last three months. Insiders own 6.14% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in PTLO. Soros Capital Management LLC lifted its holdings in shares of Portillo's by 486.8% during the 1st quarter. Soros Capital Management LLC now owns 431,012 shares of the company's stock worth $5,125,000 after acquiring an additional 357,561 shares during the period. Ameriprise Financial Inc. grew its position in Portillo's by 53.6% in the first quarter. Ameriprise Financial Inc. now owns 3,413,669 shares of the company's stock valued at $40,590,000 after acquiring an additional 1,191,443 shares in the last quarter. Orbis Allan Gray Ltd boosted its stake in shares of Portillo's by 4.1% during the 1st quarter. Orbis Allan Gray Ltd now owns 5,973,638 shares of the company's stock valued at $71,027,000 after buying an additional 234,475 shares during the last quarter. CenterStar Asset Management LLC boosted its stake in shares of Portillo's by 375.5% during the 2nd quarter. CenterStar Asset Management LLC now owns 52,300 shares of the company's stock valued at $611,000 after buying an additional 41,300 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in shares of Portillo's by 196.6% during the 1st quarter. Invesco Ltd. now owns 173,928 shares of the company's stock valued at $2,068,000 after buying an additional 115,278 shares during the last quarter. 98.34% of the stock is currently owned by hedge funds and other institutional investors.

Portillo's Company Profile

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.

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