El Pollo Loco (NASDAQ:LOCO) Upgraded to “Strong-Buy” at Freedom Capital

Freedom Capital upgraded shares of El Pollo Loco (NASDAQ:LOCO) to a strong-buy rating in a report released on Wednesday morning,Zacks.com reports.

Several other research analysts also recently issued reports on the company. Benchmark lifted their price objective on El Pollo Loco from $14.00 to $18.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Truist Financial increased their target price on El Pollo Loco from $12.00 to $13.00 and gave the company a “hold” rating in a report on Friday, March 13th. Wall Street Zen raised El Pollo Loco from a “hold” rating to a “buy” rating in a research report on Saturday, March 21st. DA Davidson boosted their price target on El Pollo Loco from $13.00 to $15.00 and gave the stock a “neutral” rating in a report on Monday, May 11th. Finally, Weiss Ratings downgraded El Pollo Loco from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, El Pollo Loco has a consensus rating of “Moderate Buy” and a consensus price target of $14.88.

El Pollo Loco Price Performance

Shares of NASDAQ LOCO opened at $16.68 on Wednesday. The company has a current ratio of 0.34, a quick ratio of 0.32 and a debt-to-equity ratio of 0.15. The company’s 50-day moving average price is $14.60 and its 200 day moving average price is $12.76. El Pollo Loco has a 52 week low of $8.98 and a 52 week high of $17.40. The stock has a market cap of $507.91 million, a price-to-earnings ratio of 17.02 and a beta of 0.78.

El Pollo Loco (NASDAQ:LOCO) last announced its earnings results on Thursday, May 7th. The restaurant operator reported $0.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.22 by $0.06. The company had revenue of $126.18 million during the quarter, compared to analysts’ expectations of $122.02 million. El Pollo Loco had a net margin of 5.87% and a return on equity of 11.04%. As a group, research analysts forecast that El Pollo Loco will post 0.95 earnings per share for the current fiscal year.

El Pollo Loco declared that its board has authorized a share repurchase plan on Thursday, May 28th that permits the company to repurchase $40.00 million in shares. This repurchase authorization permits the restaurant operator to reacquire up to 9.5% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Insider Activity

In related news, major shareholder Sardar Biglari sold 100,000 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $16.58, for a total transaction of $1,658,000.00. Following the transaction, the insider owned 3,800,000 shares of the company’s stock, valued at approximately $63,004,000. This represents a 2.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Insiders have sold a total of 222,600 shares of company stock worth $3,715,166 over the last quarter. Corporate insiders own 3.00% of the company’s stock.

Institutional Trading of El Pollo Loco

Hedge funds and other institutional investors have recently bought and sold shares of the company. Tower Research Capital LLC TRC lifted its stake in shares of El Pollo Loco by 85.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 3,862 shares of the restaurant operator’s stock worth $43,000 after purchasing an additional 1,774 shares during the period. Kestra Advisory Services LLC purchased a new stake in shares of El Pollo Loco in the fourth quarter valued at $50,000. BNP Paribas Financial Markets grew its position in shares of El Pollo Loco by 89.5% in the third quarter. BNP Paribas Financial Markets now owns 5,277 shares of the restaurant operator’s stock valued at $51,000 after purchasing an additional 2,493 shares during the period. State of Wyoming acquired a new position in El Pollo Loco in the first quarter valued at $88,000. Finally, Quinn Opportunity Partners LLC acquired a new position in El Pollo Loco in the third quarter valued at $97,000. 81.28% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting El Pollo Loco

Here are the key news stories impacting El Pollo Loco this week:

• Positive Sentiment: El Pollo Loco is expanding its restaurant footprint, with first-time openings in Idaho and a new location in Lubbock, Texas, plus opening-day promotions that could help raise brand awareness and drive sales. El Pollo Loco Opens in Idaho for First Time
• Positive Sentiment: Freedom Capital reportedly issued bullish ratings on El Pollo Loco, adding to the view that the stock may still have upside after its recent operating improvement. Dutch Bros, First Watch, and El Pollo Loco land bull ratings from Freedom Capital
• Neutral Sentiment: Recent commentary is questioning how to trade LOCO after first-quarter earnings, but the company had already posted a solid beat on EPS and revenue in its last report, so the market may be weighing valuation rather than fundamentals alone. El Pollo Loco (LOCO): Buy, sell, or hold post Q1 earnings?
• Neutral Sentiment: The company’s recent earnings and buyback authorization remain supportive longer-term signals, including a 40 million dollar repurchase plan that may help offset share-price weakness. Winner Winner, Chicken Dinner: El Pollo Loco’s Turnaround Recipe
• Negative Sentiment: Major shareholder Sardar Biglari sold additional shares this week, following earlier large sales, which can pressure sentiment because investors often read insider selling as a sign of reduced confidence or profit-taking. Insider Selling: El Pollo Loco (NASDAQ:LOCO) Major Shareholder Sells 22,600 Shares

El Pollo Loco Company Profile

El Pollo Loco (NASDAQ: LOCO) is a fast-casual restaurant chain specializing in Mexican-style fire-grilled chicken and complementary menu offerings. The company’s signature product is its marinated, flame-grilled chicken, which is prepared in an open-flame rotisserie and served in a variety of formats including tacos, burritos, bowls and salads. In addition to its core chicken offerings, El Pollo Loco menu items feature fresh-made salsas, guacamole, sides such as charro beans and fresh tortillas, as well as a selection of beverages and desserts.

Founded in 1975 in Guasave, Sinaloa, Mexico, by Juan Francisco Ochoa, the concept expanded into the United States in 1980 with its first U.S.