The stock of Arcos Dorados Holdings Inc (NYSE: ARCO) has decreased by -0.71 when compared to last closing price of 8.40. Despite this, the company has experienced a -4.03% fall in its stock price over the last five trading sessions. zacks.com reported 2024-11-13 that Arcos Dorados (ARCO) came out with quarterly earnings of $0.17 per share, beating the Zacks Consensus Estimate of $0.16 per share. This compares to earnings of $0.30 per share a year ago.
Is It Worth Investing in Arcos Dorados Holdings Inc (NYSE: ARCO) Right Now?
Arcos Dorados Holdings Inc (NYSE: ARCO) has a higher price-to-earnings ratio of 10.30x compared to its average ratio, The 36-month beta value for ARCO is at 1.13. Analysts have varying views on the stock, with 2 analysts rating it as a “buy,” 2 rating it as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for ARCO is 124.13M, and currently, shorts hold a 3.64% of that float. The average trading volume for ARCO on November 13, 2024 was 1.36M shares.
ARCO’s Market Performance
ARCO’s stock has seen a -4.03% decrease for the week, with a -13.13% drop in the past month and a -12.85% fall in the past quarter. The volatility ratio for the week is 3.75%, and the volatility levels for the past 30 days are at 2.99% for Arcos Dorados Holdings Inc The simple moving average for the last 20 days is -5.55% for ARCO stock, with a simple moving average of -16.78% for the last 200 days.
Analysts’ Opinion of ARCO
Many brokerage firms have already submitted their reports for ARCO stocks, with Jefferies repeating the rating for ARCO by listing it as a “Buy.” The predicted price for ARCO in the upcoming period, according to Jefferies is $15 based on the research report published on December 01, 2023 of the previous year 2023.
Barclays, on the other hand, stated in their research note that they expect to see ARCO reach a price target of $9. The rating they have provided for ARCO stocks is “Overweight” according to the report published on September 27th, 2022.
HSBC Securities gave a rating of “Hold” to ARCO, setting the target price at $8 in the report published on April 04th of the previous year.
ARCO Trading at -6.33% from the 50-Day Moving Average
After a stumble in the market that brought ARCO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -36.82% of loss for the given period.
Volatility was left at 2.99%, however, over the last 30 days, the volatility rate increased by 3.75%, as shares sank -16.58% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -7.22% lower at present.
During the last 5 trading sessions, ARCO fell by -6.79%, which changed the moving average for the period of 200-days by -34.52% in comparison to the 20-day moving average, which settled at $8.82. In addition, Arcos Dorados Holdings Inc saw -34.28% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARCO starting from Annette Franqui, who proposed sale 200,000 shares at the price of $1.00 back on Aug 30 ’24. After this action, Annette Franqui now owns shares of Arcos Dorados Holdings Inc, valued at $200,000 using the latest closing price.
Stock Fundamentals for ARCO
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.15 for the gross margin
The net margin for Arcos Dorados Holdings Inc stands at 0.04. The total capital return value is set at 0.15. Equity return is now at value 39.09, with 5.99 for asset returns.
Based on Arcos Dorados Holdings Inc (ARCO), the company’s capital structure generated 0.62 points at debt to capital in total, while cash flow to debt ratio is standing at 0.41. The debt to equity ratio resting at 1.61. The interest coverage ratio of the stock is 7.69.
Currently, EBITDA for the company is 455.98 million with net debt to EBITDA at 3.51. When we switch over and look at the enterprise to sales, we see a ratio of 0.74. The receivables turnover for the company is 24.68for trailing twelve months and the total asset turnover is 1.55. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.63.
Conclusion
In conclusion, Arcos Dorados Holdings Inc (ARCO) has had a bad performance lately. Opinion on the stock among analysts is bullish, with some giving it a “buy” rating and others a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
