ARKO (NASDAQ:ARKO) Issues Earnings Results, Beats Expectations By $0.11 EPS

Key Points

• ARKO beat earnings expectations: The company reported quarterly EPS of $0.26, exceeding the $0.15 consensus estimate by $0.11. Revenue totaled $1.84 billion, below analysts’ $1.99 billion expectation.
• Shares traded at $7.29 following a $0.07 decline, with a market capitalization of approximately $817.9 million. ARKO’s stock has ranged from $3.71 to $8.76 over the past 52 weeks.
• Analyst sentiment remains cautious: ARKO has an average rating of “Hold” and a consensus price target of $15, while recent rating changes included downgrades from buy-oriented ratings and a sell rating from Weiss Ratings.

ARKO (NASDAQ:ARKO - Get Free Report) issued its earnings results on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.15 by $0.11, FiscalAI reports. ARKO had a net margin of 0.38% and a return on equity of 9.10%. The company had revenue of $1.84 billion for the quarter, compared to analysts' expectations of $1.99 billion.

ARKO Stock Performance

NASDAQ:ARKO traded down $0.07 during trading hours on Thursday, hitting $7.29. 919,341 shares of the company were exchanged, compared to its average volume of 583,539. The stock has a market capitalization of $817.87 million, a price-to-earnings ratio of 38.37 and a beta of 1.00. ARKO has a 52-week low of $3.71 and a 52-week high of $8.76. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.62 and a quick ratio of 1.19. The company's 50 day moving average price is $7.84 and its 200-day moving average price is $6.72.

Insider Activity

In other ARKO news, General Counsel Maury Bricks sold 15,000 shares of the firm's stock in a transaction on Friday, June 5th. The shares were sold at an average price of $7.69, for a total value of $115,350.00. Following the completion of the transaction, the general counsel owned 182,841 shares of the company's stock, valued at approximately $1,406,047.29. This trade represents a 7.58% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 21.90% of the company's stock.

Hedge Funds Weigh In On ARKO

Hedge funds have recently made changes to their positions in the company. Empowered Funds LLC raised its stake in ARKO by 10.9% in the 4th quarter. Empowered Funds LLC now owns 465,877 shares of the company's stock worth $2,115,000 after acquiring an additional 45,892 shares during the last quarter. XTX Topco Ltd increased its holdings in shares of ARKO by 22.9% in the fourth quarter. XTX Topco Ltd now owns 23,703 shares of the company's stock valued at $108,000 after purchasing an additional 4,415 shares during the period. Numerai GP LLC increased its holdings in shares of ARKO by 667.0% in the fourth quarter. Numerai GP LLC now owns 126,258 shares of the company's stock valued at $573,000 after purchasing an additional 109,796 shares during the period. Millennium Management LLC raised its stake in shares of ARKO by 148.1% in the fourth quarter. Millennium Management LLC now owns 221,542 shares of the company's stock worth $1,006,000 after purchasing an additional 132,250 shares during the last quarter. Finally, Bridgeway Capital Management LLC raised its stake in shares of ARKO by 0.3% in the fourth quarter. Bridgeway Capital Management LLC now owns 721,977 shares of the company's stock worth $3,278,000 after purchasing an additional 1,992 shares during the last quarter. 78.29% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Weiss Ratings downgraded shares of ARKO from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, May 21st. Mizuho set a $22.00 price objective on ARKO in a report on Tuesday, July 28th. Zacks Research downgraded ARKO from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 13th. Finally, Wall Street Zen lowered ARKO from a "buy" rating to a "hold" rating in a research report on Saturday, May 30th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $15.00.

ARKO Company Profile

ARKO Corp NASDAQ: ARKO is a downstream energy and convenience retail company based in Matthews, North Carolina. The company's core operations encompass fuel supply, distribution and retailing through a network of terminals, independent dealer locations and company-operated convenience stores. ARKO's fuel offerings include branded and unbranded gasoline and diesel, as well as lubricants and other petroleum products marketed under various regional and private labels.

In its retail segment, ARKO operates a portfolio of convenience stores under the Kangaroo Express banner, serving on-site customers with fuel, grab-and-go food items, beverages and everyday household essentials.

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