Arcos Dorados (NYSE:ARCO) Shares Gap Down – What’s Next?

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $7.91, but opened at $7.70. Arcos Dorados shares last traded at $7.72, with a volume of 94,944 shares changing hands.

Wall Street Analysts Forecast Growth

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

Arcos Dorados Stock Performance

The company has a market capitalization of $1.52 billion, a P/E ratio of 10.33, a PEG ratio of 3.69 and a beta of 1.12. The stock’s fifty day moving average price is $8.66 and its 200-day moving average price is $9.00. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.57 and a current ratio of 0.63.

Arcos Dorados (NYSE:ARCO) last released its quarterly earnings data 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. Arcos Dorados had a return on equity of 29.74% and a net margin of 3.25%. The firm had revenue of $1.13 billion for the quarter, compared to analyst estimates of $1.13 billion. During the same quarter in the prior year, the company earned $0.30 earnings per share. The business’s revenue for the quarter was up .8% compared to the same quarter last year. As a group, research analysts anticipate that Arcos Dorados Holdings Inc. will post 0.65 EPS for the current fiscal year.

Hedge Funds Weigh In On Arcos Dorados

Large investors have recently modified their holdings of the stock. Fourth Sail Capital LP acquired a new stake in Arcos Dorados during the 2nd quarter worth approximately $16,463,000. Thompson Siegel & Walmsley LLC bought a new position in Arcos Dorados during the 3rd quarter worth $1,557,000. Diamond Hill Capital Management Inc. acquired a new stake in shares of Arcos Dorados during the third quarter worth $925,000. Marshall Wace LLP acquired a new stake in shares of Arcos Dorados during the second quarter worth $7,128,000. Finally, Catalyst Capital Advisors LLC bought a new stake in shares of Arcos Dorados in the third quarter valued at about $698,000. 55.91% of the stock is owned by 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.