Arcos Dorados (NYSE:ARCO) Reaches New 52-Week Low – Should You Sell?

Arcos Dorados Holdings Inc. (NYSE:ARCO)’s stock price reached a new 52-week low on Wednesday . The company traded as low as $8.07 and last traded at $8.38, with a volume of 744029 shares traded. The stock had previously closed at $8.40.

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. cut their target price on 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 quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 1.52. The company has a fifty day moving average price of $8.91 and a 200 day moving average price of $9.41. The stock has a market cap of $1.82 billion, a PE ratio of 10.49, a P/E/G ratio of 2.55 and a beta of 1.16.

Arcos Dorados (NYSE:ARCO) last announced its quarterly earnings results on Wednesday, August 14th. The restaurant operator reported $0.13 EPS for the quarter, hitting analysts’ consensus estimates of $0.13. The business had revenue of $1.11 billion for the quarter, compared to analysts’ expectations of $1.06 billion. Arcos Dorados had a return on equity of 36.55% and a net margin of 3.80%. The business’s quarterly revenue was up 6.8% on a year-over-year basis. During the same period in the previous year, the firm earned $0.14 EPS. Analysts expect that Arcos Dorados Holdings Inc. will post 0.69 earnings per share for the current year.

Institutional Investors Weigh In On Arcos Dorados

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ARCO. Absolute Gestao de Investimentos Ltda. purchased a new stake in Arcos Dorados in the 1st quarter worth approximately $22,586,000. Fourth Sail Capital LP bought a new stake in Arcos Dorados in the second quarter valued at $16,463,000. Managed Asset Portfolios LLC purchased a new position in Arcos Dorados during the 3rd quarter valued at $7,389,000. Marshall Wace LLP purchased a new position in Arcos Dorados during the 2nd quarter valued at $7,128,000. Finally, Fiera Capital Corp bought a new position in Arcos Dorados in the 3rd quarter worth $3,743,000. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Company Profile

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.