Arco Platform (NASDAQ:ARCE) Lowered to Strong Sell at Zacks Investment Research

Arco Platform (NASDAQ:ARCE) was downgraded by Zacks Investment Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Wednesday, Zacks.com reports.

According to Zacks, “Arco Platform Limited develops educational software. The Company offers a platform which delivers educational content in printed and digital formats. Arco Platform Limited is based in Vila Olimpia Sao Paulo, Brazil. “

Separately, Itau BBA Securities upgraded shares of Arco Platform from a “market perform” rating to an “outperform” rating and reduced their price target for the company from $57.00 to $47.00 in a research report on Friday, June 18th.

Shares of NASDAQ:ARCE traded down $0.28 during trading on Wednesday, hitting $23.17. 4,061 shares of the company were exchanged, compared to its average volume of 256,877. The stock has a market capitalization of $699.43 million, a P/E ratio of -579.11 and a beta of 0.84. Arco Platform has a 12-month low of $22.08 and a 12-month high of $44.66. The firm’s 50 day moving average price is $26.37 and its 200-day moving average price is $28.09.

Arco Platform (NASDAQ:ARCE) last issued its quarterly earnings data on Wednesday, August 18th. The company reported ($0.35) earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.81). The company had revenue of $48.38 million for the quarter. Arco Platform had a negative return on equity of 0.55% and a negative net margin of 1.11%. As a group, analysts forecast that Arco Platform will post 0.43 EPS for the current fiscal year.

A number of hedge funds have recently added to or reduced their stakes in the stock. Millennium Management LLC increased its stake in Arco Platform by 8.9% in the 2nd quarter. Millennium Management LLC now owns 127,459 shares of the company’s stock valued at $3,908,000 after buying an additional 10,397 shares during the period. Citadel Advisors LLC acquired a new position in Arco Platform in the 2nd quarter valued at $588,000. Royal Bank of Canada increased its stake in Arco Platform by 32.4% in the 2nd quarter. Royal Bank of Canada now owns 321,598 shares of the company’s stock valued at $9,860,000 after buying an additional 78,776 shares during the period. Amundi acquired a new position in Arco Platform in the 2nd quarter valued at $19,849,000. Finally, Renaissance Technologies LLC acquired a new position in Arco Platform in the 2nd quarter valued at $1,714,000. Hedge funds and other institutional investors own 83.14% of the company’s stock.

About Arco Platform

Arco Platform Ltd. is engaged in the provision of the educational services. It provides educational content in printed and digital format to the private schools. The firm operates through two segments: Core Curriculum and Supplemental Solutions. The Core Curriculum segment offers two versions, SAS & SAE for high income private schools and upper-middle income private schools respectively.

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