Arcos Dorados Holdings Inc. $ARCO Shares Sold by Invesco Ltd.

Key Points

• Invesco Ltd. reduced its stake in Arcos Dorados Holdings Inc. by 12.3%, holding approximately 1.80% of the company, valued at $30.56 million.
• JPMorgan Chase & Co. downgraded Arcos Dorados from an "overweight" to a "neutral" rating and lowered the price target from $10.50 to $8.80.
• Arcos Dorados recently posted earnings of $0.11 per share, exceeding expectations, although revenue was $1.14 billion, falling short of analysts' predictions.

Invesco Ltd. lowered its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 12.3% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 3,791,656 shares of the restaurant operator's stock after selling 529,504 shares during the quarter. Invesco Ltd. owned 1.80% of Arcos Dorados worth $30,561,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the business. Price T Rowe Associates Inc. MD lifted its holdings in Arcos Dorados by 40.1% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 13,463,466 shares of the restaurant operator's stock valued at $98,015,000 after acquiring an additional 3,851,704 shares during the period. Fourth Sail Capital LP acquired a new stake in Arcos Dorados in the first quarter valued at $26,746,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Arcos Dorados by 96.0% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,280,985 shares of the restaurant operator's stock valued at $23,886,000 after acquiring an additional 1,606,821 shares during the period. Private Management Group Inc. lifted its holdings in Arcos Dorados by 1.2% in the first quarter. Private Management Group Inc. now owns 3,205,913 shares of the restaurant operator's stock valued at $25,840,000 after acquiring an additional 38,056 shares during the period. Finally, Voloridge Investment Management LLC lifted its holdings in 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 acquiring an additional 31,010 shares during the period. Institutional investors and hedge funds own 55.91% of the company's stock.

Arcos Dorados Price Performance

Shares of Arcos Dorados stock traded up $0.1150 on Friday, hitting $7.1050. The company's stock had a trading volume of 1,454,364 shares, compared to its average volume of 1,593,809. Arcos Dorados Holdings Inc. has a 52-week low of $6.51 and a 52-week high of $10.27. The company has a quick ratio of 0.73, a current ratio of 0.80 and a debt-to-equity ratio of 1.62. The firm has a fifty day moving average price of $7.34 and a 200-day moving average price of $7.61. The company has a market capitalization of $1.50 billion, a P/E ratio of 11.28, a price-to-earnings-growth ratio of 1.39 and a beta of 0.59.

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, 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 previous year, the firm earned $0.13 EPS. The business's revenue for the quarter was up 2.8% compared to the same quarter last year. On average, equities research analysts expect that Arcos Dorados Holdings Inc. will post 0.63 earnings per share for the current fiscal year.

Arcos Dorados Cuts Dividend

The firm also recently disclosed a dividend, which was paid on Friday, June 27th. Investors of record on Wednesday, June 25th were given a $0.06 dividend. The ex-dividend date was Tuesday, June 24th. This represents a dividend yield of 313.0%. Arcos Dorados's payout ratio is currently 38.10%.

Analyst Ratings Changes

Separately, JPMorgan Chase & Co. downgraded Arcos Dorados from an "overweight" rating to a "neutral" rating and reduced their target price 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 has a consensus rating of "Hold" and an average target price of $8.80.

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.