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 trimmed its position in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 26.5% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 246,100 shares of the restaurant operator's stock after selling 88,800 shares during the period. Arcos Dorados makes up approximately 1.6% of Hedges Asset Management LLC's holdings, making the stock its 14th biggest holding. Hedges Asset Management LLC owned 0.12% of Arcos Dorados worth $1,942,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. Harbour Capital Advisors LLC purchased a new position in Arcos Dorados in the first quarter worth $736,000. Alta Fox Capital Management LLC purchased a new position in Arcos Dorados in the first quarter worth $9,033,000. Jane Street Group LLC grew its holdings in Arcos Dorados by 156.6% in the fourth quarter. Jane Street Group LLC now owns 195,751 shares of the restaurant operator's stock worth $1,425,000 after purchasing an additional 119,477 shares during the last quarter. Diamond Hill Capital Management Inc. grew its holdings in Arcos Dorados by 27.5% in the first quarter. Diamond Hill Capital Management Inc. now owns 234,596 shares of the restaurant operator's stock worth $1,891,000 after purchasing an additional 50,557 shares during the last quarter. Finally, Janus Henderson Group PLC purchased a new position in Arcos Dorados in the fourth quarter worth $146,000. 55.91% of the stock is owned by hedge funds and other institutional investors.

Arcos Dorados Price Performance

NYSE:ARCO opened at $6.80 on Friday. Arcos Dorados Holdings Inc. has a one year low of $6.51 and a one year high of $10.27. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.73 and a current ratio of 0.80. The firm has a market cap of $1.43 billion, a price-to-earnings ratio of 10.79, a PEG ratio of 1.37 and a beta of 0.63. The firm's fifty day moving average is $7.10 and its two-hundred day moving average is $7.47.

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

Wall Street Analyst Weigh In

Several research firms have issued reports on ARCO. Wall Street Zen raised shares of Arcos Dorados from a "hold" rating to a "buy" rating in a report on Saturday. JPMorgan Chase & Co. lowered shares of Arcos Dorados from an "overweight" rating to a "neutral" rating and lowered their price target for the company from $10.50 to $8.80 in a report on Wednesday, July 2nd. One equities research analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $8.80.

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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