Arcos Dorados (NYSE:ARCO) Sees Unusually-High Trading Volume – Should You Buy?

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) saw strong trading volume on Thursday . 1,542,246 shares traded hands during trading, an increase of 15% from the previous session’s volume of 1,340,031 shares.The stock last traded at $8.2150 and had previously closed at $8.18.

Wall Street Analysts Forecast Growth

ARCO has been the topic of several research reports. Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, May 23rd. Weiss Ratings cut shares of Arcos Dorados from a “hold (c+)” rating to a “hold (c)” rating in a research note on Monday, June 29th. Santander raised shares of Arcos Dorados to an “outperform” rating in a research report on Monday, April 20th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $8.70.

Arcos Dorados Trading Up 2.4%

The firm has a market cap of $1.79 billion, a price-to-earnings ratio of 7.64 and a beta of 0.48. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.80 and a quick ratio of 0.73. The business has a 50-day moving average of $8.51 and a 200-day moving average of $8.30.

Arcos Dorados (NYSE:ARCO) last posted its quarterly earnings results on Wednesday, May 20th. The restaurant operator reported $0.17 earnings per share for the quarter, beating analysts’ consensus estimates of $0.11 by $0.06. The firm had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.21 billion. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The business’s revenue was up 12.9% compared to the same quarter last year. During the same period last year, the company earned $0.07 earnings per share. Research analysts anticipate that Arcos Dorados Holdings Inc. will post 0.73 EPS for the current year.

Hedge Funds Weigh In On Arcos Dorados

A number of institutional investors have recently added to or reduced their stakes in ARCO. FNY Investment Advisers LLC acquired a new stake in Arcos Dorados in the second quarter valued at $40,000. Global Retirement Partners LLC raised its holdings in shares of Arcos Dorados by 9,074.6% in the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator’s stock valued at $42,000 after purchasing an additional 5,717 shares during the period. Quarry LP acquired a new stake in Arcos Dorados in the 3rd quarter valued at about $45,000. Aquatic Capital Management LLC acquired a new stake in Arcos Dorados in the 3rd quarter valued at about $53,000. Finally, Truist Financial Corp bought a new position in Arcos Dorados during the fourth quarter worth about $76,000. 55.91% of the stock is currently owned by institutional investors and hedge funds.

Arcos Dorados Company Profile

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.