Hedges Asset Management LLC Sells 88,800 Shares of Arcos Dorados Holdings Inc. $ARCO

Key Points

• Hedges Asset Management LLC has reduced its stake in Arcos Dorados Holdings Inc. by 26.5%, selling 88,800 shares and now holding 246,100 shares.
• Arcos Dorados reported earnings of $0.11 per share for the last quarter, exceeding estimates, but had revenue lower than expectations at $1.14 billion.
• Despite recent changes in ratings from analysts, Arcos Dorados currently holds an overall rating of "Hold" with an average target price of $8.80.

Hedges Asset Management LLC decreased its stake in shares of Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 26.5% during the 2nd quarter, according to the company in its most recent filing with the SEC. The firm owned 246,100 shares of the restaurant operator's stock after selling 88,800 shares during the quarter. Arcos Dorados accounts for about 1.6% of Hedges Asset Management LLC's investment portfolio, making the stock its 14th biggest position. Hedges Asset Management LLC owned about 0.12% of Arcos Dorados worth $1,942,000 as of its most recent filing with the SEC.

Several other hedge funds have also made changes to their positions in the stock. Jane Street Group LLC grew its position in Arcos Dorados by 156.6% during the fourth quarter. Jane Street Group LLC now owns 195,751 shares of the restaurant operator's stock worth $1,425,000 after buying an additional 119,477 shares in the last quarter. D. E. Shaw & Co. Inc. grew its holdings in shares of Arcos Dorados by 121.7% during the 4th quarter. D. E. Shaw & Co. Inc. now owns 22,253 shares of the restaurant operator's stock worth $162,000 after purchasing an additional 12,217 shares in the last quarter. Janus Henderson Group PLC acquired a new stake in shares of Arcos Dorados during the 4th quarter worth approximately $146,000. Squarepoint Ops LLC bought a new stake in shares of Arcos Dorados during the fourth quarter valued at approximately $223,000. Finally, Voloridge Investment Management LLC raised its stake in shares of Arcos Dorados by 3.6% in the fourth quarter. Voloridge Investment Management LLC now owns 900,088 shares of the restaurant operator's stock valued at $6,553,000 after purchasing an additional 31,010 shares in the last quarter. Institutional investors own 55.91% of the company's stock.

Analysts Set New Price Targets

A number of research firms have weighed in on ARCO. Wall Street Zen upgraded shares of Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, September 13th. JPMorgan Chase & Co. lowered shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and decreased their target price for the company from $10.50 to $8.80 in a research report on Wednesday, July 2nd. One research analyst has rated the stock with a Hold rating, According to MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $8.80.

Arcos Dorados Trading Down 0.7%

Arcos Dorados stock traded down $0.05 during trading hours on Friday, reaching $6.71. 509,793 shares of the company's stock traded hands, compared to its average volume of 1,488,665. The firm has a market capitalization of $1.41 billion, a price-to-earnings ratio of 10.64, a PEG ratio of 1.32 and a beta of 0.63. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.73 and a current ratio of 0.80. Arcos Dorados Holdings Inc. has a fifty-two week low of $6.51 and a fifty-two week high of $10.27. The firm's 50 day moving average is $7.03 and its 200-day moving average is $7.45.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly earnings data on Wednesday, August 13th. The restaurant operator reported $0.11 EPS for the quarter, beating 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 quarter in the prior year, the company posted $0.13 earnings per share. The firm's revenue was up 2.8% on a year-over-year basis. On average, analysts predict that Arcos Dorados Holdings Inc. will post 0.63 earnings per share for the current year.

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.