Portillo’s (NASDAQ:PTLO) Shares Gap Up After Better-Than-Expected Earnings

Portillo’s Inc. (NASDAQ:PTLO)’s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. The stock had previously closed at $13.57, but opened at $14.61. Portillo’s shares last traded at $14.71, with a volume of 494,039 shares.

The company reported $0.17 earnings per share for the quarter, topping analysts’ consensus estimates of $0.02 by $0.15. The company had revenue of $184.61 million during the quarter, compared to analysts’ expectations of $185.16 million. Portillo’s had a return on equity of 5.62% and a net margin of 3.65%. The business’s revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.13 earnings per share.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on the company. Stifel Nicolaus raised Portillo’s from a “hold” rating to a “buy” rating and lifted their price objective for the company from $13.00 to $16.00 in a research report on Monday, January 27th. Morgan Stanley reduced their target price on shares of Portillo’s from $15.00 to $13.00 and set an “equal weight” rating on the stock in a research report on Tuesday, January 21st. Stephens reaffirmed an “equal weight” rating and set a $13.00 price target on shares of Portillo’s in a research note on Wednesday, November 6th. Finally, UBS Group reduced their target price on Portillo’s from $14.00 to $11.00 and set a “neutral” rating for the company in a research note on Tuesday, January 7th. Three research analysts have rated the stock with a hold rating and four have issued a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $14.00.

Institutional Investors Weigh In On Portillo’s

Institutional investors have recently added to or reduced their stakes in the company. First Dallas Securities Inc. grew its position in Portillo’s by 94.4% in the fourth quarter. First Dallas Securities Inc. now owns 43,250 shares of the company’s stock worth $407,000 after buying an additional 21,000 shares during the last quarter. Fifth Third Bancorp lifted its position in shares of Portillo’s by 229.0% in the 4th quarter. Fifth Third Bancorp now owns 43,100 shares of the company’s stock valued at $405,000 after acquiring an additional 30,000 shares in the last quarter. Principal Financial Group Inc. grew its position in Portillo’s by 10.9% during the 3rd quarter. Principal Financial Group Inc. now owns 1,788,113 shares of the company’s stock worth $24,086,000 after purchasing an additional 175,999 shares in the last quarter. CenterStar Asset Management LLC lifted its holdings in shares of Portillo’s by 348.4% in the fourth quarter. CenterStar Asset Management LLC now owns 60,529 shares of the company’s stock valued at $568,000 after purchasing an additional 47,029 shares in the last quarter. Finally, Chicago Partners Investment Group LLC purchased a new stake in Portillo’s in the 4th quarter worth about $2,590,000. 98.34% of the stock is currently owned by institutional investors and hedge funds.

Portillo’s Trading Up 8.5 %

The company’s 50 day simple moving average is $11.93 and its two-hundred day simple moving average is $12.02. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.31 and a current ratio of 0.38. The stock has a market cap of $1.09 billion, a price-to-earnings ratio of 35.20, a price-to-earnings-growth ratio of 14.77 and a beta of 1.82.

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.