Renaissance Technologies LLC Sells 504,147 Shares of Arcos Dorados Holdings Inc. $ARCO

Key Points

• Renaissance Technologies cut its Arcos Dorados stake by 48%, selling 504,147 shares during the first quarter and retaining 545,587 shares valued at approximately $4.5 million.
• Analyst sentiment is generally positive: Arcos Dorados has an average “Buy” rating and a consensus price target of $10.50, above its reported opening price of $8.32.
• The company exceeded first-quarter expectations, reporting EPS of $0.17 versus $0.11 expected and revenue of $1.22 billion, up 12.9% year over year.

Renaissance Technologies LLC cut its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 48.0% during the 1st quarter, according to the company in its most recent disclosure with the SEC. The firm owned 545,587 shares of the restaurant operator's stock after selling 504,147 shares during the quarter. Renaissance Technologies LLC owned 0.26% of Arcos Dorados worth $4,501,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of ARCO. Global Retirement Partners LLC grew its position in shares of Arcos Dorados by 9,074.6% during the 4th quarter. Global Retirement Partners LLC now owns 5,780 shares of the restaurant operator's stock worth $42,000 after buying an additional 5,717 shares during the period. Quarry LP acquired a new position in shares of Arcos Dorados during the 3rd quarter valued at $45,000. Aquatic Capital Management LLC acquired a new position in shares of Arcos Dorados during the 3rd quarter valued at $53,000. Tudor Investment Corp ET AL bought a new position in Arcos Dorados during the third quarter worth $73,000. Finally, Truist Financial Corp bought a new position in Arcos Dorados during the fourth quarter worth $76,000. 55.91% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on ARCO shares. Santander upgraded shares of Arcos Dorados to an "outperform" rating in a report on Monday, April 20th. JPMorgan Chase & Co. raised Arcos Dorados from a "neutral" rating to an "overweight" rating and boosted their target price for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Wall Street Zen raised Arcos Dorados from a "hold" rating to a "buy" rating in a research note on Saturday, May 23rd. Zacks Research raised Arcos Dorados from a "hold" rating to a "strong-buy" rating in a research note on Friday, July 10th. Finally, Weiss Ratings lowered Arcos Dorados from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, June 29th. One research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and one has assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Buy" and an average target price of $10.50.

Arcos Dorados Stock Down 1.7%

ARCO opened at $8.32 on Friday. The company has a debt-to-equity ratio of 1.25, a current ratio of 0.80 and a quick ratio of 0.73. The company's 50-day moving average is $8.34 and its 200 day moving average is $8.40. Arcos Dorados Holdings Inc. has a fifty-two week low of $6.54 and a fifty-two week high of $9.75. The firm has a market capitalization of $1.75 billion, a P/E ratio of 7.50 and a beta of 0.48.

Arcos Dorados (NYSE:ARCO - Get Free Report) last issued its quarterly earnings data on Thursday, May 21st. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.11 by $0.06. Arcos Dorados had a net margin of 4.86% and a return on equity of 10.47%. The business had revenue of $1.22 billion during the quarter, compared to the consensus estimate of $1.21 billion. During the same period in the prior year, the firm posted $0.07 EPS. The firm's quarterly revenue was up 12.9% compared to the same quarter last year. Research analysts expect that Arcos Dorados Holdings Inc. will post 0.76 earnings per share for the current fiscal year.

Arcos Dorados Company Profile

Arcos Dorados Holdings Inc is the largest independent McDonald's franchisee in the world, operating under an exclusive license agreement with McDonald's Corporation. The company develops, owns and operates quick-service restaurants, offering the full McDonald's menu, including hamburgers, chicken sandwiches, salads, sides, desserts and McCafé beverages. In addition to restaurant operations, Arcos Dorados manages supply chain logistics, property development, training and support services for its franchise network.

Headquartered in Montevideo, Uruguay, Arcos Dorados serves 20 markets across Latin America and the Caribbean, including Argentina, Brazil, Chile, Colombia, Mexico, Puerto Rico and Uruguay.

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