Renaissance Group LLC Decreases Position in Arcos Dorados Holdings Inc. $ARCO

Renaissance Group LLC lessened its stake in Arcos Dorados Holdings Inc. (NYSE:ARCO) by 12.9% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 189,235 shares of the restaurant operator’s stock after selling 27,905 shares during the period. Renaissance Group LLC’s holdings in Arcos Dorados were worth $1,493,000 as of its most recent SEC filing.

Other institutional investors have also added to or reduced their stakes in the company. Nuveen LLC bought a new stake in shares of Arcos Dorados in the 1st quarter worth approximately $79,583,000. Pzena Investment Management LLC purchased a new stake in shares of Arcos Dorados in the 2nd quarter worth approximately $51,549,000. Fourth Sail Capital LP purchased a new position in shares of Arcos Dorados in the 1st quarter worth about $26,746,000. Moerus Capital Management LLC lifted its stake in shares of Arcos Dorados by 67.3% in the first quarter. Moerus Capital Management LLC now owns 3,552,013 shares of the restaurant operator’s stock worth $28,629,000 after buying an additional 1,429,338 shares in the last quarter. Finally, Alta Fox Capital Management LLC purchased a new stake in Arcos Dorados during the 1st quarter valued at $9,033,000. Hedge funds and other institutional investors own 55.91% of the company’s stock.

Arcos Dorados Price Performance

ARCO stock opened at $7.27 on Thursday. The company has a debt-to-equity ratio of 1.62, a quick ratio of 0.73 and a current ratio of 0.80. The company’s fifty day moving average price is $7.03 and its 200-day moving average price is $7.25. Arcos Dorados Holdings Inc. has a one year low of $6.51 and a one year high of $8.58. The company has a market capitalization of $1.53 billion, a PE ratio of 11.53, a price-to-earnings-growth ratio of 3.46 and a beta of 0.60.

Arcos Dorados (NYSE:ARCO) last posted its earnings results on Wednesday, November 12th. The restaurant operator reported $0.12 earnings per share for the quarter, beating the consensus estimate of $0.10 by $0.02. The company had revenue of $1.19 billion during the quarter, compared to analysts’ expectations of $1.28 billion. Arcos Dorados had a net margin of 2.89% and a return on equity of 24.54%. Arcos Dorados’s quarterly revenue was up 5.2% on a year-over-year basis. During the same period last year, the company posted $0.17 earnings per share. On average, equities analysts anticipate that Arcos Dorados Holdings Inc. will post 0.63 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of research analysts recently weighed in on ARCO shares. JPMorgan Chase & Co. lowered their price objective on shares of Arcos Dorados from $8.80 to $8.70 and set a “neutral” rating on the stock in a research report on Tuesday, November 11th. Zacks Research lowered Arcos Dorados from a “hold” rating to a “strong sell” rating in a research note on Thursday, October 23rd. Weiss Ratings cut shares of Arcos Dorados from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Wednesday, October 8th. Finally, Wall Street Zen upgraded Arcos Dorados from a “hold” rating to a “buy” rating in a research note on Saturday, November 15th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Sell” and a consensus price target of $8.70.

Arcos Dorados Profile

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.