El Pollo Loco (NASDAQ:LOCO) Stock Rating Upgraded by Freedom Capital

El Pollo Loco (NASDAQ:LOCO) was upgraded by equities researchers at Freedom Capital to a “strong-buy” rating in a report issued on Wednesday,Zacks.com reports.

LOCO has been the topic of a number of other reports. Truist Financial boosted their price objective on shares of El Pollo Loco from $12.00 to $13.00 and gave the company a “hold” rating in a research report on Friday, March 13th. Benchmark raised their target price on shares of El Pollo Loco from $14.00 to $18.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Weiss Ratings lowered shares of El Pollo Loco from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Tuesday. William Blair reiterated a “market perform” rating on shares of El Pollo Loco in a research report on Friday, March 13th. Finally, DA Davidson increased their price target on shares of El Pollo Loco from $13.00 to $15.00 and gave the stock a “neutral” rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, El Pollo Loco presently has an average rating of “Moderate Buy” and an average target price of $14.88.

El Pollo Loco Trading Down 3.0%

NASDAQ LOCO opened at $16.68 on Wednesday. The stock has a market cap of $507.91 million, a P/E ratio of 17.02 and a beta of 0.78. El Pollo Loco has a fifty-two week low of $8.98 and a fifty-two week high of $17.40. The stock has a 50 day simple moving average of $14.60 and a two-hundred day simple moving average of $12.76. The company has a debt-to-equity ratio of 0.15, a quick ratio of 0.32 and a current ratio of 0.34.

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

El Pollo Loco declared that its board has initiated a stock buyback plan on Thursday, May 28th that allows the company to buyback $40.00 million in shares. This buyback authorization allows the restaurant operator to purchase up to 9.5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Activity at El Pollo Loco

In related news, major shareholder Sardar Biglari sold 22,600 shares of the company’s stock in a transaction that occurred on Tuesday, June 30th. The stock was sold at an average price of $16.91, for a total value of $382,166.00. Following the sale, the insider owned 3,777,400 shares in the company, valued at $63,875,834. This represents a 0.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Over the last quarter, insiders sold 222,600 shares of company stock valued at $3,715,166. Insiders own 3.00% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Tower Research Capital LLC TRC raised its position in shares of El Pollo Loco by 85.0% in 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 last quarter. Kestra Advisory Services LLC bought a new position in El Pollo Loco in the 4th quarter worth about $50,000. BNP Paribas Financial Markets grew its position in El Pollo Loco by 89.5% during the 3rd 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 last quarter. State of Wyoming purchased a new stake in El Pollo Loco during the 1st quarter valued at about $88,000. Finally, Quinn Opportunity Partners LLC bought a new stake in El Pollo Loco during the 3rd quarter valued at about $97,000. Hedge funds and other institutional investors own 81.28% of the company’s stock.

Key El Pollo Loco News

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.