Arcos Dorados Holdings Inc. (NYSE:ARCO) marked $7.22 per share on Wednesday, down from a previous closing price of $7.52. While Arcos Dorados Holdings Inc. has underperformed by -3.99%, investors are advised to look at stock chart patterns for technical insight. Within its last year performance, ARCO rose by 39.11%, with highs and lows ranging from $8.44 to $4.33, whereas the simple moving average jumped by 3.38% in the last 200 days.
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On April 04, 2022, HSBC Securities Downgraded Arcos Dorados Holdings Inc. (NYSE: ARCO) to Hold. A report published by BofA Securities on March 24, 2022, Upgraded its rating to ‘Buy’ for ARCO. Credit Suisse also Upgraded ARCO shares as ‘Outperform’, setting a target price of $9.50 on the company’s shares in a report dated February 23, 2022. Goldman January 19, 2022d the rating to Buy on January 19, 2022, and set its price target from $6 to $7. BofA Securities September 20, 2021d its ‘Buy’ rating to ‘Neutral’ for ARCO, as published in its report on September 20, 2021. JP Morgan’s report from July 02, 2021 suggests a price prediction of $8.50 for ARCO shares, giving the stock a ‘Overweight’ rating. Goldman also rated the stock as ‘Neutral’.
Analysis of Arcos Dorados Holdings Inc. (ARCO)
ARCO currently pays a dividend of $0.12 per share, which means investors will get a return regardless of the company’s performance over the next few months. Further, the quarter-over-quarter increase in sales is 49.80%, showing a positive trend in the upcoming months.
In order to gain a clear picture of Arcos Dorados Holdings Inc.’s future performance, a variety of well-rounded analysis and research techniques can be applied, with equity being the most critical. The goal here is to ensure that your current return on equity of 50.90% is sufficient for you to turn a profit off your investment. Taking into account the quick ratio of the company, currently set at 0.80, you can see that the company can cover any debts it may have, which can easily be seen in the annual report of the company.
An average volume of 656.26K can be a very valuable indicator of volatility for ARCO stock. On a monthly basis, the volatility of the stock is set at 3.30%, whereas on a weekly basis, it is put at 3.42%, with a loss of -3.99% over the past seven days. Furthermore, long-term investors anticipate a median target price of $9.95, showing growth from the present price of $7.22, which can serve as yet another indication of whether ARCO is worth investing in or should be passed over.
How Do You Analyze Arcos Dorados Holdings Inc. Shares?
The Uruguay based company Arcos Dorados Holdings Inc. (ARCO) is one of the biggest names in Restaurants. When comparing Arcos Dorados Holdings Inc. shares with other companies under Consumer Cyclical, the P/E value is an influential factor to note. This is because it represents an indication of the future growth of the company in terms of investors’ expectations. Ultimately, the value of the latter should demonstrate steady, rapid growth, which is an accurate measure of the company’s progress. In addition to the value of 13.86, there is a growth in quarterly earnings of 200.30%.
In addition to the fundamentals, you should also consider how many employees own shares in the company. This is because the values should be in line with investors’ expectations. As such, the current holdings of company stock inside the company are set at 3.70%. This can enable you to see the extent to which executives own the company’s stock. As opposed to executive stock, institutional ownership accounts for 41.30% of the company’s shares, contributing to an indication of company value, since large shareholders may signify strength within the organization.
Are institutional investors increasing their holdings in ARCO shares?
The recent increase in stakes in ARCO appears to be a result of several institutional investors and hedge funds increasing their positions. Invesco Advisers, Inc.’s position in ARCO has decreased by -6.46% in the first quarter. The company now owns 10,663,972 shares of the stock, with a value of $77.85 million, following the sale of -736,665 additional shares during the last quarter. Teachers Advisors LLC made another decreased to its shares in ARCO during the first quarter, downing its stake by -2.09%.
At the end of the first quarter, TPE Gestora de Recursos Ltda decreased its ARCO holdings by -15.43% and now holds 5.52 million ARCO shares valued at $40.27 million with the lessened -1.01 million shares during the period. ARCO shares are owned by institutional investors to the tune of 41.30% at present.