Arcos Dorados (NYSE:ARCO) Sees Large Volume Increase – Time to Buy?

Shares of Arcos Dorados Holdings Inc. (NYSE:ARCO) saw unusually-strong trading volume on Wednesday . Approximately 1,689,366 shares were traded during trading, an increase of 38% from the previous session’s volume of 1,227,688 shares.The stock last traded at $7.74 and had previously closed at $7.79.

Analyst Upgrades and Downgrades

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

Arcos Dorados Price Performance

The stock has a market cap of $1.54 billion, a price-to-earnings ratio of 10.46, a price-to-earnings-growth ratio of 3.69 and a beta of 1.12. The stock’s 50 day moving average price is $8.61 and its two-hundred day moving average price is $8.99. The company has a quick ratio of 0.57, a current ratio of 0.63 and a debt-to-equity ratio of 1.40.

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

Hedge Funds Weigh In On Arcos Dorados

Hedge funds have recently made changes to their positions in the company. Private Management Group Inc. lifted its stake in shares of Arcos Dorados by 8.5% in the third quarter. Private Management Group Inc. now owns 2,352,659 shares of the restaurant operator’s stock worth $20,515,000 after buying an additional 184,155 shares in the last quarter. Fourth Sail Capital LP acquired a new stake in Arcos Dorados in the 2nd quarter valued at about $16,463,000. Perpetual Ltd raised its holdings in Arcos Dorados by 15.8% in the 3rd quarter. Perpetual Ltd now owns 1,636,470 shares of the restaurant operator’s stock valued at $14,270,000 after acquiring an additional 223,496 shares during the last quarter. Franklin Resources Inc. purchased a new position in Arcos Dorados in the 3rd quarter worth approximately $12,101,000. Finally, Van ECK Associates Corp boosted its holdings in shares of Arcos Dorados by 6.3% during the 3rd quarter. Van ECK Associates Corp now owns 876,300 shares of the restaurant operator’s stock worth $7,852,000 after purchasing an additional 52,289 shares during the last quarter. Institutional investors and hedge funds own 55.91% of the company’s stock.

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.