3,318,350 Shares in Arcos Dorados Holdings Inc. (NYSE:ARCO) Bought by Fourth Sail Capital LP

Key Points

• Fourth Sail Capital LP acquired a new stake in Arcos Dorados Holdings Inc., purchasing 3,318,350 shares valued at approximately $26.7 million, making it 5th in their portfolio.
• Arcos Dorados saw significant changes in institutional ownership, with Renaissance Technologies LLC increasing its stake by 730.4% in the fourth quarter.
• JPMorgan Chase & Co. downgraded Arcos Dorados from an "overweight" to a "neutral" rating and reduced their price target from $10.50 to $8.80.

Fourth Sail Capital LP purchased a new position in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor purchased 3,318,350 shares of the restaurant operator's stock, valued at approximately $26,746,000. Arcos Dorados comprises approximately 6.3% of Fourth Sail Capital LP's portfolio, making the stock its 5th largest position. Fourth Sail Capital LP owned about 1.58% of Arcos Dorados at the end of the most recent quarter.

A number of other large investors have also bought and sold shares of the business. Deltec Asset Management LLC boosted its position in Arcos Dorados by 1.2% in the 1st quarter. Deltec Asset Management LLC now owns 168,538 shares of the restaurant operator's stock valued at $1,358,000 after buying an additional 2,000 shares during the last quarter. O Keefe Stevens Advisory Inc. boosted its position in Arcos Dorados by 0.4% in the 1st quarter. O Keefe Stevens Advisory Inc. now owns 506,247 shares of the restaurant operator's stock valued at $4,080,000 after buying an additional 2,058 shares during the last quarter. Diligent Investors LLC boosted its position in Arcos Dorados by 3.3% in the 4th quarter. Diligent Investors LLC now owns 72,478 shares of the restaurant operator's stock valued at $528,000 after buying an additional 2,317 shares during the last quarter. Freedom Investment Management Inc. boosted its position in Arcos Dorados by 10.6% in the 4th quarter. Freedom Investment Management Inc. now owns 35,689 shares of the restaurant operator's stock valued at $260,000 after buying an additional 3,427 shares during the last quarter. Finally, Boothbay Fund Management LLC boosted its position in Arcos Dorados by 27.0% in the 4th quarter. Boothbay Fund Management LLC now owns 19,761 shares of the restaurant operator's stock valued at $144,000 after buying an additional 4,201 shares during the last quarter. 55.91% of the stock is currently owned by institutional investors.

Arcos Dorados Trading Down 1.8%

Shares of ARCO stock traded down $0.13 during trading hours on Friday, reaching $6.85. The company had a trading volume of 889,418 shares, compared to its average volume of 1,217,777. The company has a 50 day moving average of $7.39 and a 200 day moving average of $7.64. The company has a debt-to-equity ratio of 1.80, a current ratio of 0.86 and a quick ratio of 0.81. The firm has a market cap of $1.44 billion, a price-to-earnings ratio of 10.54 and a beta of 0.59. Arcos Dorados Holdings Inc. has a 1-year low of $6.51 and a 1-year high of $10.55.

Arcos Dorados (NYSE:ARCO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 14th. The restaurant operator reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.13 by ($0.06). The company had revenue of $1.08 billion during the quarter, compared to analyst estimates of $1.02 billion. Arcos Dorados had a net margin of 3.00% and a return on equity of 26.70%. The business's revenue for the quarter was down .4% compared to the same quarter last year. During the same period last year, the company earned $0.14 EPS. On average, equities research analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current year.

Arcos Dorados Cuts Dividend

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

Analysts Set New Price Targets

Separately, JPMorgan Chase & Co. lowered Arcos Dorados from an "overweight" rating to a "neutral" rating and decreased their price objective for the company from $10.50 to $8.80 in a research report on Wednesday, July 2nd.

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.