Hillsdale Investment Management Cuts Stake in El Pollo Loco Holdings

Hillsdale Investment Management Inc. has reduced its stake in El Pollo Loco Holdings, Inc. (NASDAQ: LOCO) by 24.7% during the second quarter of the year. According to the fund’s latest 13F filing with the Securities and Exchange Commission, Hillsdale now holds 298,196 shares of the restaurant chain after selling 98,000 shares in that period. The value of Hillsdale’s remaining investment stands at approximately $3,283,000.

The shift in Hillsdale’s holdings comes as several other institutional investors also adjust their positions in El Pollo Loco. Notably, LSV Asset Management increased its ownership by 5.4% in the first quarter, acquiring an additional 82,152 shares. This brings LSV’s total to 1,615,552 shares, valued at around $16,640,000. Similarly, First Eagle Investment Management LLC raised its stake by 17.2% in the second quarter, now holding 726,393 shares worth $7,998,000 after purchasing 106,500 shares.

Millennium Management LLC made a significant move as well, boosting its position by 197.4% in the first quarter, acquiring 451,575 shares to reach a total of 680,391 shares valued at about $7,008,000. Geode Capital Management LLC also increased its stake by 3.4% in the second quarter, now owning 615,280 shares valued at $6,776,000. Meanwhile, Nuveen LLC entered a new position during the first quarter worth $5,618,000. Overall, hedge funds and institutional investors now own 81.28% of El Pollo Loco’s stock.

El Pollo Loco stock experienced a positive response, rising by 4.0% to open at $10.47 on Friday. The stock’s 50-day moving average price stands at $9.88, while the 200-day moving average is $10.23. Over the past year, the stock has fluctuated between a low of $8.29 and a high of $13.14. Currently, the company holds a market capitalization of $313.58 million, with a price-to-earnings (PE) ratio of 11.90 and a beta of 1.02. Its debt-to-equity ratio is 0.22, while the current and quick ratios are 0.41 and 0.38, respectively.

Recent analyst ratings have also shown increasing confidence in El Pollo Loco. On November 3, 2023, Zacks Research upgraded the shares from a “hold” to a “strong-buy” rating. In contrast, Weiss Ratings maintained a “hold (c)” rating in a report dated October 8, 2023. Currently, one analyst has issued a strong buy rating, one a buy rating, and two have assigned a hold rating. According to data from MarketBeat.com, the stock carries an average rating of “moderate buy” with a consensus price target of $18.00.

El Pollo Loco Holdings, Inc., through its subsidiary, develops, franchises, licenses, and operates quick-service restaurants under the El Pollo Loco name across several states including California, Nevada, Arizona, Texas, Colorado, Utah, and Louisiana. The company also licenses its brand for restaurants in the Philippines.

As the company navigates these changes in stock holdings and analyst sentiments, stakeholders will be closely watching El Pollo Loco’s performance amidst the evolving landscape of the quick-service restaurant sector.