why Arcos Dorados Holdings Inc. [ARCO] is a Good Choice for Investors After New Price Target of $6.55

Arcos Dorados Holdings Inc. [NYSE: ARCO] slipped around -0.01 points on Wednesday, while shares priced at $6.01 at the close of the session, down -0.17%. The company report on July 1, 2021 that Arcos Dorados Announces Stock Dividend Distribution.

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Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, announced that it will distribute a stock dividend for 2021.

Maintaining its commitment to provide shareholders a return in 2021, on June 30 the Board of Directors approved a stock dividend distribution to all Class A and Class B shareholders. On July 23, 2021, the Company will distribute a dividend of one (1) share for every seventy (70) shares held by its shareholders of record at the close of business on July 14, 2021. The Company will pay cash in lieu of any fractional shares and will use the Class A shares’ closing price on the New York Stock Exchange on July 13, 2021 to calculate the cash payment.

Arcos Dorados Holdings Inc. stock is now 19.48% up from its year-to-date (YTD) trading value. ARCO Stock saw the intraday high of $6.015 and lowest of $5.90 per share. The company’s 52-week high price is 6.82, which means current price is +25.73% above from all time high which was touched on 06/02/21.

Compared to the average trading volume of 847.10K shares, ARCO reached a trading volume of 1834149 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Arcos Dorados Holdings Inc. [ARCO]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARCO shares is $6.55 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARCO stock is a recommendation set at 2.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

JP Morgan have made an estimate for Arcos Dorados Holdings Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on July 02, 2021. While these analysts kept the previous recommendation, Goldman raised their target price to Neutral. The new note on the price target was released on April 23, 2021, representing the official price target for Arcos Dorados Holdings Inc. stock.

The Average True Range (ATR) for Arcos Dorados Holdings Inc. is set at 0.17, with the Price to Sales ratio for ARCO stock in the period of the last 12 months amounting to 0.63. The Price to Book ratio for the last quarter was 7.71. Price to Free Cash Flow for ARCO in the course of the last twelve months was 74.34 with Quick ratio for the last quarter at 0.70.

How has ARCO stock performed recently?

Arcos Dorados Holdings Inc. [ARCO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 0.33. With this latest performance, ARCO shares dropped by -8.94% in over the last four-week period, additionally plugging by 19.96% over the last 6 months – not to mention a rise of 19.88% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARCO stock in for the last two-week period is set at 41.43, with the RSI for the last a single of trading hit 37.19, and the three-weeks RSI is set at 45.57 for Arcos Dorados Holdings Inc. [ARCO]. The present Moving Average for the last 50 days of trading for this stock 6.22, while it was recorded at 6.02 for the last single week of trading, and 5.23 for the last 200 days.

Arcos Dorados Holdings Inc. [ARCO]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Arcos Dorados Holdings Inc. [ARCO] shares currently have an operating margin of -3.06 and a Gross Margin at +5.73. Arcos Dorados Holdings Inc.’s Net Margin is presently recorded at -7.53.

Return on Total Capital for ARCO is now -3.22, given the latest momentum, and Return on Invested Capital for the company is -8.23. Return on Equity for this stock declined to -48.31, with Return on Assets sitting at -6.16. When it comes to the capital structure of this company, Arcos Dorados Holdings Inc. [ARCO] has a Total Debt to Total Equity ratio set at 802.86. Additionally, ARCO Total Debt to Total Capital is recorded at 88.92, with Total Debt to Total Assets ending up at 69.14. Long-Term Debt to Equity for the company is recorded at 772.51, with the Long-Term Debt to Total Capital now at 85.56.

Reflecting on the efficiency of the workforce at the company, Arcos Dorados Holdings Inc. [ARCO] managed to generate an average of -$2,035 per employee. Receivables Turnover for the company is 16.38 with a Total Asset Turnover recorded at a value of 0.82.Arcos Dorados Holdings Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.70 and a Current Ratio set at 0.80.

Insider trade positions for Arcos Dorados Holdings Inc. [ARCO]

There are presently around $492 million, or 72.90% of ARCO stock, in the hands of institutional investors. The top three institutional holders of ARCO stocks are: INVESCO LTD. with ownership of 19,393,682, which is approximately 7.483% of the company’s market cap and around 4.35% of the total institutional ownership; NUVEEN ASSET MANAGEMENT, LLC, holding 19,133,175 shares of the stock with an approximate value of $114.99 million in ARCO stocks shares; and MOERUS CAPITAL MANAGEMENT LLC, currently with $35.91 million in ARCO stock with ownership of nearly -1.404% of the company’s market capitalization.

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Positions in Arcos Dorados Holdings Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 67 institutional holders increased their position in Arcos Dorados Holdings Inc. [NYSE:ARCO] by around 8,742,479 shares. Additionally, 57 investors decreased positions by around 6,214,799 shares, while 22 investors held positions by with 66,899,866 shares. The mentioned changes placed institutional holdings at 81,857,144 shares, according to the latest SEC report filing. ARCO stock had 24 new institutional investments in for a total of 1,719,890 shares, while 25 institutional investors sold positions of 2,929,472 shares during the same period.

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