Arcos Dorados Holdings Inc. (NYSE:ARCO) finished Friday with an addition of $0.17 to close at $11.07, an upside of 1.56 percent. An average of 756,000 shares of common stock have been traded in the last five days. There was a gain of $0.32 in the past week, and it reached a new high 33 times over the past 12 months. The last 20 days have seen an average of 909,535 shares traded, while the 50-day average volume stands at 1,365,514.
ARCO stock has increased by 3.65% in the last month. The company shares reached their 1-month lowest point of $10.29 on 07/17/23. With the stock rallying to its 52-week high on 07/27/23, shares of the company touched a low of $6.64 and a high of $11.47 in 52 weeks. It has reached a new high 23 times so far this year and achieved 32.42% or $2.71 in price. In spite of this, the price is down -3.49% from the 52-week high.
Valuation Metrics
Arcos Dorados Holdings Inc. (ARCO) has a trailing price-to-earnings (P/E) ratio of 15.21. The stock’s beta is 1.05. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.61, the price-to-book (PB) ratio at 6.59, and the price-to-cash flow ratio at 35.02.
Financial Health
The quick ratio of Arcos Dorados Holdings Inc. for the recent quarter was 0.80, and the current ratio was 0.90, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 2.01 and a total debt to equity ratio of 2.07 for the recent quarter. Arcos Dorados Holdings Inc.’s EBITDA margin is 10.61%, while its operating margin for the same period stands at 7.40%. Its gross profit as reported stood at $492.61 million compared to revenue of $3.62 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Arcos Dorados Holdings Inc.’s return on assets was 6.00%.
Earnings Surprise
For the recent quarter, Arcos Dorados Holdings Inc. had $37.46 million in cash and short-term investments compared to $711.67 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 $140.34 million in the quarter, while revenues were grew 67.59%.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Arcos Dorados Holdings Inc. (ARCO) price momentum. RSI 9-day as of the close on 11 August was 60.28%, suggesting the stock is Neutral, with historical volatility in this time frame at 28.49%.
As of today, ARCO’s price is $10.82 +2.98% or $0.32 from its 5-day moving average. ARCO is currently trading +6.75% higher than its 20-day SMA and +43.58% higher than its 100-day SMA. However, the stock’s current price level is +31.01% above the SMA50 and +60.43% above the SMA200.
The stochastic %K and %D were 37.00% and 31.83%, respectively, and the average true range (ATR) was 0.28. With the 14-day stochastic at 60.00% and the average true range at 0.28, the RSI (14) stands at 60.61%. The stock has reached 0.01 on the 9-day MACD Oscillator while the 14-day reading was at -0.14.
Analyst Ratings
Barclays launched coverage on Arcos Dorados Holdings Inc. (NYSE: ARCO) in its analyst report released on September 27, 2022. The firm assigned the stock an Overweight rating. The consensus rating for Arcos Dorados Holdings Inc. (ARCO) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell ARCO, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 1 analysts, while 7 others rate it as a “buy”.
What is ARCO’s price target for the next 12 months?
Analysts predict a range of price targets between $11.00 and $15.00, with a median target of $12.65. Taking a look at these predictions, the average price target given by analysts for Arcos Dorados Holdings Inc. (ARCO) stock is $12.66.
