Fox Run Management L.L.C. Buys New Stake in Arcos Dorados Holdings Inc. $ARCO

Key Points

• Fox Run Management L.L.C. acquired 62,990 shares of Arcos Dorados Holdings Inc. valued at approximately $508,000 in the first quarter.
• Notable institutional investors have significantly increased their stakes, with Price T Rowe Associates boosting theirs by 40.1% in the fourth quarter, now owning over 13.4 million shares.
• JPMorgan Chase downgraded Arcos Dorados from an "overweight" to a "neutral" rating, reducing its price target from $10.50 to $8.80.

Fox Run Management L.L.C. purchased a new position in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 62,990 shares of the restaurant operator's stock, valued at approximately $508,000.

Several other hedge funds have also recently modified their holdings of the stock. Renaissance Technologies LLC raised its holdings in shares of Arcos Dorados by 730.4% in the fourth quarter. Renaissance Technologies LLC now owns 422,934 shares of the restaurant operator's stock worth $3,079,000 after buying an additional 372,000 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Arcos Dorados in the fourth quarter valued at approximately $154,000. Rockefeller Capital Management L.P. increased its holdings in Arcos Dorados by 6.7% in the 4th quarter. Rockefeller Capital Management L.P. now owns 220,918 shares of the restaurant operator's stock worth $1,608,000 after buying an additional 13,965 shares during the period. Jump Financial LLC acquired a new stake in Arcos Dorados during the 4th quarter worth about $374,000. Finally, Freedom Investment Management Inc. lifted its holdings in Arcos Dorados by 10.6% in the fourth quarter. Freedom Investment Management Inc. now owns 35,689 shares of the restaurant operator's stock valued at $260,000 after acquiring an additional 3,427 shares during the period. Institutional investors and hedge funds own 55.91% of the company's stock.

Wall Street Analyst Weigh In

Separately, JPMorgan Chase & Co. lowered shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and lowered their target price for the stock from $10.50 to $8.80 in a research note on Wednesday, July 2nd. One equities research analyst has rated the stock with a Hold rating, According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $8.80.

Arcos Dorados Price Performance

Shares of Arcos Dorados stock traded up $0.1250 during trading hours on Friday, reaching $7.1150. 917,520 shares of the company's stock were exchanged, compared to its average volume of 1,516,819. The business has a fifty day moving average of $7.35 and a two-hundred day moving average of $7.62. The company has a market capitalization of $1.50 billion, a P/E ratio of 11.29, a price-to-earnings-growth ratio of 1.38 and a beta of 0.59. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.62. Arcos Dorados Holdings Inc. has a 1 year low of $6.51 and a 1 year high of $10.27.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its earnings results on Wednesday, August 13th. The restaurant operator reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.05 by $0.06. Arcos Dorados had a return on equity of 24.54% and a net margin of 2.89%.The business had revenue of $1.14 billion during the quarter, compared to the consensus estimate of $1.22 billion. During the same period last year, the company earned $0.13 EPS. The company's revenue for the quarter was up 2.8% on a year-over-year basis. As a group, research analysts predict that Arcos Dorados Holdings Inc. will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Cuts Dividend

The company also recently declared a dividend, which was paid on Friday, June 27th. Stockholders of record on Wednesday, June 25th were given a dividend of $0.06 per share. This represents a dividend yield of 313.0%. The ex-dividend date of this dividend was Tuesday, June 24th. Arcos Dorados's payout ratio is presently 38.10%.

Arcos Dorados 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.