Portillo’s (NASDAQ:PTLO) Shares Gap Up on Strong Earnings

Portillo’s Inc. (NASDAQ:PTLO)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $5.45, but opened at $6.04. Portillo’s shares last traded at $6.6610, with a volume of 3,225,724 shares.

The company reported $0.06 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.03. The company had revenue of $194.07 million during the quarter, compared to the consensus estimate of $193.18 million. Portillo’s had a return on equity of 2.78% and a net margin of 1.85%. Portillo’s’s revenue was up 7.0% compared to the same quarter last year. During the same quarter last year, the business posted $0.02 earnings per share.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on PTLO. Wall Street Zen cut Portillo’s from a “hold” rating to a “sell” rating in a report on Saturday, October 31st. UBS Group decreased their price target on shares of Portillo’s from $5.50 to $4.50 and set a “neutral” rating for the company in a research report on Friday, October 9th. Stephens reiterated an “equal weight” rating and issued a $5.00 price target on shares of Portillo’s in a report on Thursday, October 15th. Robert W. Baird raised Portillo’s to a “hold” rating in a research report on Monday, August 24th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Portillo’s in a research note on Friday, October 30th. Two equities research analysts have rated the stock with a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Portillo’s presently has an average rating of “Hold” and an average target price of $5.66.

Insider Activity at Portillo’s

In other Portillo’s news, Director I Jr acquired 65,355 shares of the stock in a transaction dated Wednesday, August 12th. The stock was purchased at an average cost of $4.59 per share, for a total transaction of $299,979.45. Following the acquisition, the director owned 551,770 shares in the company, valued at $2,532,624.30. The trade was a 13.44% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this link. Company insiders own 6.34% of the company’s stock.

Hedge Funds Weigh In On Portillo’s

A number of large investors have recently added to or reduced their stakes in PTLO. Chicago Partners Investment Group LLC increased its holdings in shares of 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 buying an additional 2,487 shares during the period. Bank of New York Mellon Corp lifted its stake in shares of Portillo’s by 2.4% in the 1st 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 boosted its holdings in 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. Squarepoint Ops LLC boosted its holdings in Portillo’s by 8.7% during the 2nd quarter. Squarepoint Ops LLC now owns 131,888 shares of the company’s stock valued at $625,000 after acquiring an additional 10,570 shares during the period. Finally, Deutsche Bank AG grew its position in Portillo’s by 29.5% during the 2nd quarter. Deutsche Bank AG now owns 65,667 shares of the company’s stock worth $311,000 after acquiring an additional 14,973 shares during the last quarter. Hedge funds and other institutional investors own 98.34% of the company’s stock.

Portillo’s Trading Up 21.9%

The firm has a 50-day moving average of $4.22 and a 200-day moving average of $4.82. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.20 and a current ratio of 0.26. The firm has a market capitalization of $504.62 million, a P/E ratio of 36.70, a price-to-earnings-growth ratio of 4.60 and a beta of 1.51.

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.