Short Interest in Arcos Dorados Holdings Inc. (NYSE:ARCO) Drops By 19.8%

Arcos Dorados Holdings Inc. (NYSE:ARCOGet Rating) saw a large decline in short interest during the month of May. As of May 31st, there was short interest totalling 1,300,000 shares, a decline of 19.8% from the May 15th total of 1,620,000 shares. Based on an average daily volume of 991,900 shares, the days-to-cover ratio is currently 1.3 days. Approximately 1.1% of the company’s shares are sold short.

Several research firms have weighed in on ARCO. Credit Suisse Group upgraded shares of Arcos Dorados from a “neutral” rating to an “outperform” rating and set a $9.50 target price on the stock in a report on Wednesday, February 23rd. HSBC downgraded shares of Arcos Dorados from a “buy” rating to a “hold” rating and set a $8.00 price target on the stock. in a research note on Monday, April 4th. StockNews.com raised shares of Arcos Dorados from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, May 31st. Bradesco Corretora raised shares of Arcos Dorados from a “neutral” rating to an “outperform” rating and set a $12.00 price target on the stock in a research note on Wednesday. Finally, Bank of America raised shares of Arcos Dorados from a “neutral” rating to a “buy” rating and boosted their price target for the company from $7.80 to $10.00 in a research note on Thursday, March 24th. One equities research analyst has rated the stock with a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, Arcos Dorados presently has an average rating of “Buy” and a consensus price target of $9.17.

ARCO traded up $0.08 during trading hours on Friday, hitting $7.00. 1,089,334 shares of the company’s stock were exchanged, compared to its average volume of 1,145,667. Arcos Dorados has a 12-month low of $4.33 and a 12-month high of $8.44. The firm has a 50 day moving average of $7.43 and a 200 day moving average of $6.85. The firm has a market cap of $1.47 billion, a P/E ratio of 14.58, a price-to-earnings-growth ratio of 0.47 and a beta of 1.22. The company has a current ratio of 0.84, a quick ratio of 0.78 and a debt-to-equity ratio of 3.09.

Arcos Dorados (NYSE:ARCOGet Rating) last announced its earnings results on Wednesday, May 18th. The restaurant operator reported $0.12 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.07. Arcos Dorados had a net margin of 3.45% and a return on equity of 50.06%. The firm had revenue of $787.30 million for the quarter, compared to the consensus estimate of $731.07 million. During the same period in the prior year, the firm earned ($0.14) EPS. As a group, research analysts expect that Arcos Dorados will post 0.44 EPS for the current fiscal year.

Several large investors have recently made changes to their positions in the business. Invesco Ltd. increased its position in shares of Arcos Dorados by 12.5% in the 1st quarter. Invesco Ltd. now owns 21,962,867 shares of the restaurant operator’s stock valued at $178,559,000 after purchasing an additional 2,435,111 shares during the last quarter. Moerus Capital Management LLC increased its position in shares of Arcos Dorados by 20.6% in the 1st quarter. Moerus Capital Management LLC now owns 6,031,654 shares of the restaurant operator’s stock valued at $49,037,000 after purchasing an additional 1,030,193 shares during the last quarter. Morgan Stanley boosted its holdings in shares of Arcos Dorados by 3.7% in the 2nd quarter. Morgan Stanley now owns 3,186,085 shares of the restaurant operator’s stock valued at $19,022,000 after buying an additional 112,256 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of Arcos Dorados by 3.1% in the 3rd quarter. BlackRock Inc. now owns 2,485,975 shares of the restaurant operator’s stock valued at $12,727,000 after buying an additional 75,536 shares in the last quarter. Finally, Private Management Group Inc. boosted its holdings in shares of Arcos Dorados by 0.3% in the 1st quarter. Private Management Group Inc. now owns 2,239,291 shares of the restaurant operator’s stock valued at $18,205,000 after buying an additional 6,933 shares in the last quarter. 35.41% of the stock is currently owned by institutional investors.

Arcos Dorados Company Profile (Get Rating)

Arcos Dorados Holdings Inc operates as a franchisee of McDonald's restaurants. The company has the exclusive right to own, operate, and grant franchises of McDonald's restaurants in 20 countries and territories in Latin America and the Caribbean, including Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, the U.S.

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