Arco Platform Limited (NASDAQ:ARCE) finished Thursday with an addition of $1.85 to close at $13.80, an upside of 15.51 percent. An average of 398,257 shares of common stock have been traded in the last five days. There was a gain of $1.46 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 225,444 shares traded, while the 50-day average volume stands at 162,608.
ARCE stock has increased by 8.34% in the last month. The company shares reached their 1-month lowest point of $11.64 on 08/09/23. With the stock rallying to its 52-week high on 01/03/23, shares of the company touched a low of $7.85 and a high of $17.54 in 52 weeks. It has reached a new high 1 time so far this year and achieved 2.24% or $0.31 in price. In spite of this, the price is down -21.31% from the 52-week high.
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Valuation Metrics
Arco Platform Limited (ARCE) has a trailing price-to-earnings (P/E) ratio of 276.06. The stock’s beta is 0.51. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.34, the price-to-book (PB) ratio at 1.63.
Financial Health
The quick ratio of Arco Platform Limited for the three months ended March 30 was 1.10, and the current ratio was 1.30, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.68 and a total debt to equity ratio of 0.71 for the quarter ending March 30. Arco Platform Limited’s EBITDA margin for the year ending March 30 is 30.93%, while its operating margin for the same period stands at 17.80%. Its gross profit as reported stood at $246.95 million compared to revenue of $343.9 million.
Earnings Surprise
For the three-month period that ended March 30, Arco Platform Limited had $0.18 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$30.04 million in the quarter, while revenues were grew 155.86%. The analyst consensus anticipated Arco Platform Limited’s latest quarter earnings to come in at -$0.1 per share, but it turned out to be $0.29, a 390.00% surprise. For the quarter, EBITDA amounted to $41.13 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Arco Platform Limited (ARCE) price momentum. RSI 9-day as of the close on 10 August was 76.10%, suggesting the stock is Overbought, with historical volatility in this time frame at 78.89%.
As of today, ARCE’s price is $12.36 +11.82% or $1.46 from its 5-day moving average. ARCE is currently trading +8.57% higher than its 20-day SMA and +8.74% higher than its 100-day SMA. However, the stock’s current price level is +16.25% above the SMA50 and +27.87% above the SMA200.
The stochastic %K and %D were 45.39% and 25.27%, respectively, and the average true range (ATR) was 0.52. With the 14-day stochastic at 98.19% and the average true range at 0.46, the RSI (14) stands at 71.43%. The stock has reached 0.12 on the 9-day MACD Oscillator while the 14-day reading was at -0.02.
Analyst Ratings
Goldman downgraded Arco Platform Limited (NASDAQ: ARCE) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy. The consensus rating for Arco Platform Limited (ARCE) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ARCE, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.
What is ARCE’s price target for the next 12 months?
Analysts predict a range of price targets between $73.16 and $90.17, with a median target of $80.87. Taking a look at these predictions, the average price target given by analysts for Arco Platform Limited (ARCE) stock is $80.43.
