Arcos Dorados (NYSE:ARCO) Stock Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Arcos Dorados Holdings Inc. shares have crossed above their 200-day moving average, indicating potential bullish momentum in the stock's performance.
• JPMorgan Chase & Co. has recently downgraded the stock's rating from "overweight" to "neutral" and reduced its target price from $10.50 to $8.80.
• The company reported an earnings per share (EPS) of $0.11 for the last quarter, exceeding expectations despite revenue falling short of estimates at $1.14 billion.

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Get Free Report) passed above its 200-day moving average during trading on Wednesday . The stock has a 200-day moving average of $7.63 and traded as high as $7.64. Arcos Dorados shares last traded at $7.59, with a volume of 5,599,940 shares trading hands.

Wall Street Analysts Forecast Growth

Separately, JPMorgan Chase & Co. downgraded shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and cut their target price for the company from $10.50 to $8.80 in a research note on Wednesday, July 2nd.

Arcos Dorados Stock Up 9.2%

The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.81 and a current ratio of 0.86. The company has a market cap of $1.60 billion, a PE ratio of 11.68 and a beta of 0.59. The firm has a fifty day simple moving average of $7.38 and a 200 day simple moving average of $7.63.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted its quarterly earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 EPS for the quarter, beating the consensus estimate of $0.05 by $0.06. The company had revenue of $1.14 billion during the quarter, compared to analysts' expectations of $1.22 billion. Arcos Dorados had a return on equity of 26.70% and a net margin of 3.00%. The firm's revenue was up 2.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.13 EPS. Equities research analysts predict that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

Arcos Dorados Cuts Dividend

The firm also recently declared a dividend, which was paid on Friday, June 27th. Shareholders of record on Wednesday, June 25th were issued a $0.06 dividend. The ex-dividend date was Tuesday, June 24th. This represents a yield of 313.0%. Arcos Dorados's payout ratio is 36.92%.

Institutional Trading of Arcos Dorados

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Deltec Asset Management LLC grew its holdings in shares of Arcos Dorados by 1.2% during the 1st quarter. Deltec Asset Management LLC now owns 168,538 shares of the restaurant operator's stock worth $1,358,000 after purchasing an additional 2,000 shares during the period. O Keefe Stevens Advisory Inc. grew its holdings in shares of Arcos Dorados by 0.4% during the 1st quarter. O Keefe Stevens Advisory Inc. now owns 506,247 shares of the restaurant operator's stock worth $4,080,000 after purchasing an additional 2,058 shares during the period. Diligent Investors LLC grew its holdings in shares of Arcos Dorados by 3.3% during the 4th quarter. Diligent Investors LLC now owns 72,478 shares of the restaurant operator's stock worth $528,000 after purchasing an additional 2,317 shares during the period. Freedom Investment Management Inc. grew its holdings in shares of Arcos Dorados by 10.6% during the 4th quarter. Freedom Investment Management Inc. now owns 35,689 shares of the restaurant operator's stock worth $260,000 after purchasing an additional 3,427 shares during the period. Finally, Dodge & Cox grew its holdings in shares of Arcos Dorados by 3.7% during the 2nd quarter. Dodge & Cox now owns 109,966 shares of the restaurant operator's stock worth $868,000 after purchasing an additional 3,966 shares during the period. Hedge funds and other institutional investors own 55.91% of the company's stock.

About Arcos Dorados

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.

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