SPX Gestao de Recursos Ltda Lowers Stock Holdings in Arcos Dorados Holdings Inc. $ARCO

Key Points

• SPX Gestao de Recursos Ltda cut its Arcos Dorados stake by 21.2% in Q1, selling 1.6 million shares and leaving it with about 5.95 million shares valued at roughly $49.1 million.
• Arcos Dorados reported stronger-than-expected quarterly results, posting EPS of $0.17 versus estimates of $0.11 and revenue of $1.22 billion, up 12.9% year over year.
• Analyst sentiment remains constructive, with the stock holding an average Buy rating and a consensus price target of $10.50, while JPMorgan and Zacks recently upgraded their views.

SPX Gestao de Recursos Ltda lowered its holdings in Arcos Dorados Holdings Inc. (NYSE:ARCO - Free Report) by 21.2% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 5,949,286 shares of the restaurant operator's stock after selling 1,602,390 shares during the period. Arcos Dorados makes up about 4.1% of SPX Gestao de Recursos Ltda's portfolio, making the stock its 7th largest holding. SPX Gestao de Recursos Ltda owned approximately 2.82% of Arcos Dorados worth $49,082,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Lazard Asset Management LLC boosted its position in Arcos Dorados by 6.7% in the fourth quarter. Lazard Asset Management LLC now owns 21,471,672 shares of the restaurant operator's stock valued at $157,602,000 after buying an additional 1,343,195 shares in the last quarter. Pzena Investment Management LLC lifted its position in shares of Arcos Dorados by 1.7% during the 1st quarter. Pzena Investment Management LLC now owns 10,741,166 shares of the restaurant operator's stock valued at $88,615,000 after acquiring an additional 178,602 shares during the period. Moerus Capital Management LLC increased its position in Arcos Dorados by 6.8% in the 4th quarter. Moerus Capital Management LLC now owns 3,556,906 shares of the restaurant operator's stock valued at $26,108,000 after buying an additional 226,912 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Arcos Dorados by 3.1% during the second quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,508,707 shares of the restaurant operator's stock valued at $27,684,000 after buying an additional 105,972 shares during the last quarter. Finally, Brightlight Capital Management LP raised its stake in shares of Arcos Dorados by 55.2% in the fourth quarter. Brightlight Capital Management LP now owns 3,466,800 shares of the restaurant operator's stock worth $25,446,000 after purchasing an additional 1,232,800 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company's stock.

Arcos Dorados Stock Down 1.0%

ARCO opened at $8.21 on Friday. The company has a market capitalization of $1.73 billion, a PE ratio of 7.40 and a beta of 0.48. The company has a current ratio of 0.80, a quick ratio of 0.73 and a debt-to-equity ratio of 1.25. The firm's 50 day simple moving average is $8.44 and its two-hundred day simple moving average is $8.33. Arcos Dorados Holdings Inc. has a 1-year low of $6.51 and a 1-year high of $9.75.

Arcos Dorados (NYSE:ARCO - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The restaurant operator reported $0.17 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.06. Arcos Dorados had a return on equity of 10.47% and a net margin of 4.86%.The firm had revenue of $1.22 billion during the quarter, compared to analyst estimates of $1.21 billion. During the same quarter in the prior year, the company posted $0.07 earnings per share. The business's quarterly revenue was up 12.9% compared to the same quarter last year. As a group, equities analysts forecast that Arcos Dorados Holdings Inc. will post 0.73 EPS for the current year.

Analyst Ratings Changes

Several equities analysts have recently issued reports on the company. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Arcos Dorados in a report on Wednesday, April 8th. Weiss Ratings downgraded shares of Arcos Dorados from a "hold (c+)" rating to a "hold (c)" rating in a report on Monday, June 29th. JPMorgan Chase & Co. raised shares of Arcos Dorados from a "neutral" rating to an "overweight" rating and lifted their price objective for the stock from $9.00 to $10.50 in a report on Friday. Zacks Research raised shares of Arcos Dorados from a "hold" rating to a "strong-buy" rating in a report on Friday, July 10th. Finally, Santander raised Arcos Dorados to an "outperform" rating in a research note on Monday, April 20th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $10.50.

Arcos Dorados 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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