Arcos Dorados (NYSE:ARCO) Shares Gap Down – Time to Sell?

Arcos Dorados Holdings Inc. (NYSE:ARCO) gapped down before the market opened on Tuesday . The stock had previously closed at $7.91, but opened at $7.70. Arcos Dorados shares last traded at $7.72, with a volume of 94,944 shares changing hands.

Analyst Upgrades and Downgrades

Separately, JPMorgan Chase & Co. cut their target price on Arcos Dorados from $14.00 to $12.00 and set an “overweight” rating for the company in a research report on Friday, September 13th.

Arcos Dorados Stock Down 7.2 %

The firm has a market cap of $1.52 billion, a price-to-earnings ratio of 10.33, a PEG ratio of 3.69 and a beta of 1.12. The business’s 50-day moving average is $8.66 and its 200-day moving average is $9.00. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.57 and a current ratio of 0.63.

Arcos Dorados (NYSE:ARCO) last posted its earnings results on Wednesday, November 13th. The restaurant operator reported $0.17 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.16 by $0.01. Arcos Dorados had a net margin of 3.25% and a return on equity of 29.74%. The company had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.13 billion. During the same quarter in the previous year, the company posted $0.30 earnings per share. Arcos Dorados’s quarterly revenue was up .8% compared to the same quarter last year. On average, equities analysts predict that Arcos Dorados Holdings Inc. will post 0.65 EPS for the current year.

Hedge Funds Weigh In On Arcos Dorados

A number of institutional investors have recently modified their holdings of ARCO. Fourth Sail Capital LP acquired a new position in Arcos Dorados in the second quarter valued at about $16,463,000. Franklin Resources Inc. bought a new stake in Arcos Dorados in the 3rd quarter valued at approximately $12,101,000. Managed Asset Portfolios LLC bought a new position in shares of Arcos Dorados during the 3rd quarter worth approximately $7,389,000. Marshall Wace LLP acquired a new stake in Arcos Dorados in the 2nd quarter valued at $7,128,000. Finally, Fiera Capital Corp bought a new stake in Arcos Dorados during the 3rd quarter worth about $3,743,000. 55.91% of the stock is owned by institutional investors.

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.