Arcos Dorados (NYSE:ARCO) Stock Crosses Above 200 Day Moving Average – Here’s Why

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s share price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $7.19 and traded as high as $7.39. Arcos Dorados shares last traded at $7.2950, with a volume of 911,478 shares.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on ARCO. JPMorgan Chase & Co. reduced their target price on Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a report on Tuesday, November 11th. Zacks Research raised shares of Arcos Dorados from a “strong sell” rating to a “hold” rating in a research note on Friday, November 21st. Wall Street Zen raised shares of Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Arcos Dorados in a report on Monday. Three analysts have rated the stock with a Hold rating, According to MarketBeat.com, Arcos Dorados presently has an average rating of “Hold” and a consensus target price of $8.70.

Arcos Dorados Trading Down 0.5%

The company has a current ratio of 0.89, a quick ratio of 0.81 and a debt-to-equity ratio of 1.32. The firm has a market capitalization of $1.54 billion, a P/E ratio of 6.24, a PEG ratio of 2.50 and a beta of 0.46. The business has a 50 day moving average of $7.30 and a 200-day moving average of $7.19.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.02. Arcos Dorados had a net margin of 5.39% and a return on equity of 20.42%. The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.28 billion. During the same quarter in the prior year, the company earned $0.17 earnings per share. The business’s quarterly revenue was up 5.2% compared to the same quarter last year. Analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Institutional Trading of Arcos Dorados

Several hedge funds and other institutional investors have recently modified their holdings of ARCO. Tudor Investment Corp ET AL acquired a new position in shares of Arcos Dorados during the third quarter worth about $73,000. Auxier Asset Management LLC lifted its stake in Arcos Dorados by 12.0% in the 3rd quarter. Auxier Asset Management LLC now owns 369,921 shares of the restaurant operator’s stock valued at $2,497,000 after acquiring an additional 39,546 shares in the last quarter. Morningstar Investment Management LLC acquired a new position in Arcos Dorados during the 3rd quarter worth approximately $553,000. PharVision Advisers LLC acquired a new position in Arcos Dorados during the 3rd quarter worth approximately $269,000. Finally, Verition Fund Management LLC grew its stake in shares of Arcos Dorados by 148.2% during the 3rd quarter. Verition Fund Management LLC now owns 147,192 shares of the restaurant operator’s stock worth $994,000 after acquiring an additional 87,892 shares in the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

About Arcos Dorados

Arcos Dorados Holdings Inc is the largest independent McDonald’s franchisee in the world, operating under an exclusive license agreement with McDonald’s Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald’s menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.