Arcos Dorados Holdings Inc. (NYSE: ARCO) stock jumped 2.16% on Monday to $10.40 against a previous-day closing price of $10.18. With 0.61 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.31 million shares. During the session, the Restaurants company that operates in wider Consumer Cyclical sector, reached to the highest price of $10.41 whereas the lowest price it dropped to was $10.15. The 52-week range on ARCO shows that it touched its highest point at $11.47 and its lowest point at $6.64 during that stretch. It currently has a 1-year price target of $13.21. With its current market cap of 2.23 billion, ARCO has annualized dividend of $0.22 while the current yield stands at 2.12%. Beta for the stock currently stands at 1.06.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ARCO was up-trending over the past week, with a rise of 6.78%, but this was up by 5.26% over a month. Three-month performance surged to 14.41% while six-month performance rose 33.16%. The stock gained 39.78% in the past year, while it has gained 24.40% so far this year. A look at the trailing 12-month EPS for ARCO yields 0.79 with Next year EPS estimates of 0.82. For the next quarter, that number is 0.19. This implies an EPS growth rate of 208.40% for this year and 9.09% for next year. EPS is expected to grow by 42.56% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 2.30%.
Float and Shares Shorts:
At present, 210.63 million ARCO shares are outstanding with a float of 122.83 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.4 million, which was 1.14% higher than short shares on Jul 30, 2023. In addition to Mr. Woods W. Staton as the firm’s Exec. Chairman, Mr. Marcelo Rabach serves as its CEO & Director.
Through their ownership of 43.21% of ARCO’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 32.23% of ARCO, in contrast to 31.42% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in ARCO with 6.75% of the stake, TIAA-CREF Investment Management L holds 8,812,494 shares worth 8,812,494. A second-largest stockholder of ARCO, Invesco Advisers, Inc., holds 8,204,787 shares, controlling over 6.28% of the firm’s shares. Teachers Advisors LLC is the third largest shareholder in ARCO, holding 7,008,689 shares or 5.37% stake. With a 6.75% stake in ARCO, the CREF Stock Account is the largest stakeholder. A total of 8,812,494 shares are owned by the mutual fund manager. The TIAA-CREF Emerging Markets Equity, which owns about 5.28% of ARCO stock, is the second-largest Mutual Fund holder. It holds 6,892,655 shares valued at 68.03 million. Invesco Emerging Markets All Cap holds 4.79% of the stake in ARCO, owning 6,250,663 shares worth 61.69 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, ARCO reported revenue of $887.89M and operating income of $60.65M. The EBITDA in the recently reported quarter was $91.07M and diluted EPS was $0.07.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARCO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ARCO analysts setting a high price target of $15.00 and a low target of $12.00, the average target price over the next 12 months is $12.96. Based on these targets, ARCO could surge 44.23% to reach the target high and rise by 15.38% to reach the target low. Reaching the average price target will result in a growth of 24.62% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.