In a note to investors published on Wednesday, StockNews.com increased their recommendation for Arcos Dorados (NYSE: ARCO) from a “buy” rating to a “strong-buy” rating.
Several other research analysts regarding the company have made recent statements. Goldman Sachs Group increased their target price for Arcos Dorados from $9.00 to $10.00 and gave the company a “buy” rating in a research report published on Tuesday, August 30th. Barclays started providing coverage of Arcos Dorados in the market with the publication of a research report on September 27th. They ranked the firm as “overweight” and established a price objective of $9.00 for the company. The stock has been given a rating of “Hold” by one equity research analyst, “buy” by five, and “strong buy” by one analyst. According to Bloomberg.com, the general opinion regarding Arcos Dorados is to “buy” the company’s stock, and the average price objective is $9.75.
In midday trading on Wednesday, Arcos Dorados’ shares increased $0.05 to $7.26. There was a total trading volume of 613,862 shares, with an average volume of 962,093. The price of Arcos Dorados has ranged from a low of $4.83 to a high of $8.44 over the past 52 weeks. The debt-to-equity ratio is currently at 2.99, the current ratio is 0.97, and the quick ratio is 0.90. All three ratios are currently in the negative. The business has a market capitalization of $1.53 billion, a price-to-earnings ratio of 11.52, a price-to-earnings-to-growth ratio of 1.26, and a beta of 1.08. The moving average for the company over the past fifty days is $7.32, and the moving average over the last 200 days is $7.25.
Hedge funds and other institutional investors have recently been active in the company’s stock market, buying and selling shares. In the first three months of the year, Invesco Ltd. boosted its ownership percentage in Arcos Dorados by 12.5%. Invesco Ltd. now owns 21,962,867 shares of the restaurant operator’s stock, valued at $178,559,000 after the company purchased 2,435,111 shares during the period. Moerus Capital Management LLC’s holdings in Arcos Dorados saw a 20.6% growth during the first quarter due to the company’s investment. Moerus Capital Management LLC now owns 6,031,654 shares of the restaurant operator’s stock, which has a value of $49,037,000 following the purchase of an additional 1,030,193 shares during the period. Macquarie Group Ltd. boosted its position in Arcos Dorados by 15.3% during the third quarter of the current fiscal year. Macquarie Group Ltd. now owns 4,533,150 shares of the restaurant operator’s stock, valued at $33,047,000 after the company made a new purchase of 600,593 shares during the period. The percentage of ownership in Arcos Dorados held by Private Management Group Inc. increased by 0.3% during the first quarter. Private Management Group Inc. now has 2,239,291 shares of the restaurant operator’s stock, valued at $18,205,000, following the acquisition of an additional 6,933 shares during the time in question.
Last but not least, during the third quarter, Marshall Wace LLP added 2.8% more stock to its holdings in Arcos Dorados. Following the acquisition of 45,472 additional shares during the period, Marshall Wace LLP now has 1,688,708 shares of the restaurant operator’s stock, which has a value of $12,311,000. The company’s stock is owned by hedge funds and other types of institutional investors to the extent of 35.66%.
McDonald’s has a franchise agreement with Arcos Dorados Holdings Inc. The company owns, operates, and licenses franchises for McDonald’s restaurants in Argentina, Aruba, Brazil, Chile, Colombia, Costa Rica, Curacao, Ecuador, French Guiana, Guadeloupe, Martinique, Mexico, Panama, Peru, Puerto Rico, Trinidad and Tobago, Uruguay, and the United States of America. Other countries include Curacao, French Guiana, Guadeloupe, Martinique, Panama, Peru, Puerto Rico, Trinidad and Tobago, and Uruguay.