Arcos Dorados (NYSE:ARCO) Reaches New 1-Year Low – What’s Next?

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s share price reached a new 52-week low during trading on Monday . The stock traded as low as $7.20 and last traded at $7.20, with a volume of 8197 shares changing hands. The stock had previously closed at $7.29.

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. reduced their price target on shares of Arcos Dorados from $14.00 to $12.00 and set an “overweight” rating for the company in a research note on Friday, September 13th.

Arcos Dorados Stock Performance

The company has a market cap of $1.53 billion, a PE ratio of 10.34, a PEG ratio of 3.69 and a beta of 1.12. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.63 and a quick ratio of 0.57. The business has a 50-day moving average of $8.30 and a 200 day moving average of $8.88.

Arcos Dorados (NYSE:ARCO) last announced its earnings results on Wednesday, November 13th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.01. The company had revenue of $1.13 billion during the quarter, compared to analyst estimates of $1.13 billion. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. The firm’s quarterly revenue was up .8% compared to the same quarter last year. During the same period in the previous year, the business posted $0.30 earnings per share. Equities research analysts anticipate that Arcos Dorados Holdings Inc. will post 0.65 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ARCO. Quarry LP boosted its holdings in shares of Arcos Dorados by 431.0% in the 2nd quarter. Quarry LP now owns 3,239 shares of the restaurant operator’s stock worth $29,000 after purchasing an additional 2,629 shares during the period. Bank of New York Mellon Corp purchased a new position in Arcos Dorados during the second quarter worth $93,000. nVerses Capital LLC bought a new position in Arcos Dorados during the second quarter valued at $105,000. MQS Management LLC purchased a new stake in shares of Arcos Dorados in the second quarter valued at $116,000. Finally, Magnetar Financial LLC purchased a new position in shares of Arcos Dorados during the 2nd quarter worth about $150,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

About Arcos Dorados

Arcos Dorados Holdings Inc operates as a franchisee of McDonald’s restaurants. It 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.