ARKO (NASDAQ:ARKO) Shares Cross Above Fifty Day Moving Average - Should You Sell?

Key Points

• ARKO shares moved above their 50-day moving average, trading as high as $4.29 and last at $4.20; the 50-day average was $4.19.
• Analyst views are mixed, with MarketBeat reporting a consensus Hold rating and an average price target of $14.50.
• Quarterly earnings per share of $0.08 fell short of the $0.12 consensus, though revenue of $2.39 billion topped expectations. ARKO also declared a $0.03 quarterly dividend, equivalent to a 2.9% yield.

ARKO Corp. (NASDAQ:ARKO - Get Free Report) shares passed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $4.19 and traded as high as $4.29. ARKO shares last traded at $4.20, with a volume of 1,014,018 shares.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on ARKO. Raymond James Financial lowered shares of ARKO from a "strong-buy" rating to an "outperform" rating and lowered their target price for the company from $8.00 to $7.00 in a report on Monday, August 10th. Mizuho set a $22.00 price target on ARKO in a research note on Tuesday, July 28th. Weiss Ratings lowered ARKO from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, September 25th. Finally, Zacks Research raised ARKO from a "strong sell" rating to a "hold" rating in a research report on Friday, October 9th. One analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $14.50.

ARKO Price Performance

The firm's fifty day simple moving average is $4.19 and its 200-day simple moving average is $5.94. The firm has a market capitalization of $471.20 million, a PE ratio of 84.02 and a beta of 0.99. The company has a quick ratio of 1.15, a current ratio of 1.60 and a debt-to-equity ratio of 1.82.

ARKO (NASDAQ:ARKO - Get Free Report) last posted its quarterly earnings results on Thursday, November 5th. The company reported $0.08 EPS for the quarter, missing analysts' consensus estimates of $0.12 by ($0.04). ARKO had a net margin of 0.19% and a return on equity of 4.02%. The firm had revenue of $2.39 billion for the quarter, compared to analysts' expectations of $2.02 billion. On average, research analysts forecast that ARKO Corp. will post 0.11 earnings per share for the current fiscal year.

ARKO Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 3rd. Investors of record on Friday, November 20th will be issued a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a yield of 2.9%. The ex-dividend date is Friday, November 20th. ARKO's payout ratio is presently 240.00%.

Institutional Trading of ARKO

Several institutional investors have recently added to or reduced their stakes in ARKO. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT increased its holdings in shares of ARKO by 26.5% in the 3rd quarter. CUSHING ASSET MANAGEMENT LP dba NXG INVESTMENT MANAGEMENT now owns 1,075,000 shares of the company's stock worth $4,429,000 after purchasing an additional 225,000 shares in the last quarter. Engineers Gate Manager LP lifted its holdings in shares of ARKO by 46.5% during the second quarter. Engineers Gate Manager LP now owns 101,499 shares of the company's stock valued at $815,000 after purchasing an additional 32,204 shares in the last quarter. Squarepoint Ops LLC bought a new position in shares of ARKO during the second quarter valued at $174,000. Ancora Advisors LLC lifted its holdings in shares of ARKO by 23.0% during the second quarter. Ancora Advisors LLC now owns 719,960 shares of the company's stock valued at $5,781,000 after purchasing an additional 134,682 shares in the last quarter. Finally, Empowered Funds LLC purchased a new stake in shares of ARKO during the second quarter valued at $4,671,000. 78.29% of the stock is currently owned by hedge funds and other institutional investors.

About ARKO

ARKO Corp. NASDAQ: ARKO is a convenience store and fuel retail operator in the United States. Through its subsidiary GPM Investments, the company operates convenience stores that sell gasoline, diesel fuel, food, beverages, tobacco products, and other everyday consumer goods. Many locations also offer prepared food, loyalty programs, and additional retail services.

ARKO operates stores under a variety of regional and national banners, including fas mart, E-Z Mart, Scotchman, Young's, Li'l Cricket, BreadBox, and others.

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