Truxt Investmentos Ltda. Acquires Shares in Arcos Dorados Holdings Inc.

During the third quarter, Truxt Investmentos Ltda. has made a notable investment by acquiring a new stake in Arcos Dorados Holdings Inc. (NYSE:ARCO). According to the latest 13F filing submitted to the Securities and Exchange Commission, the institutional investor purchased a total of 214,708 shares of the restaurant operator. This acquisition is valued at approximately $1,872,000, indicating a significant interest in the company’s potential.

Arcos Dorados now represents about 1.3% of Truxt Investmentos Ltda.'s total holdings, ranking as the 15th largest position in their portfolio. At the end of the most recent quarter, Truxt Investmentos Ltda. held around 0.10% of Arcos Dorados.

Additional Institutional Investments

Aside from Truxt Investmentos, other large investors have also recently adjusted their positions in Arcos Dorados. Quarry LP dramatically increased its stake by 431.0% in the previous quarter, now controlling 3,239 shares worth approximately $29,000 after adding another 2,629 shares. Furthermore, Bank of New York Mellon Corp initiated a new position worth about $93,000 during the same period. nVerses Capital LLC also entered the scene with a new investment valued at approximately $105,000. Adalta Capital Management LLC made a similar move in the first quarter with a stake worth $111,000. Moreover, Blue Trust Inc. boosted its position by 24.6% during the second quarter to hold 12,307 shares valued at $111,000 after purchasing an additional 2,427 shares.

As of now, institutional investors collectively own 55.91% of Arcos Dorados' stock, reflecting a strong institutional interest.

Analyst Updates

In market analysis, JPMorgan Chase & Co. has revised its price target for Arcos Dorados, lowering it from $14.00 to $12.00 while maintaining an "overweight" rating for the stock as reported on September 13th.

Performance Insights

As of Friday, Arcos Dorados shares opened at $8.52, showcasing a decline of 1.2%. The company is navigating a 50-day moving average of $8.93 and a two-hundred day moving average of $9.45. The 52-week trading range demonstrates a low of $8.08 and a high of $13.20. Currently, Arcos Dorados Holdings Inc. boasts a market capitalization of $1.79 billion, with a price-to-earnings ratio of 10.52 and a PEG ratio of 2.64. The company also has a quick ratio of 0.57 and a current ratio of 0.63, indicating how it manages its short-term liabilities.

Recent Earnings Report

In its last quarterly earnings report published on August 14th, Arcos Dorados announced earnings of $0.13 per share, which aligns with the expectations of analysts. The total revenue in that quarter reached $1.11 billion, surpassing the $1.06 billion forecast by evaluations. The company reported a return on equity of 36.55% alongside a net margin of 3.80%. Compared to the previous year, revenue experienced an increase of 6.8% during this quarter, although it was slightly down from the previous year’s earnings of $0.14 per share. Analysts estimate that Arcos Dorados Holdings Inc. will achieve $0.69 earnings per share for the current fiscal year.

Company Overview

Arcos Dorados Holdings Inc. operates as a franchisee for McDonald's restaurants. The company has the exclusive rights to own, operate, and grant franchises for McDonald's in 20 different countries and territories throughout Latin America and the Caribbean. This includes major markets such as Argentina, Brazil, and Mexico amongst others.

Conclusion

With increasing institutional investment, recent adjustments in analyst ratings, and a steady performance in the market, Arcos Dorados is positioned in a way that attracts attention from various sectors including institutional investors.

Investment, Shares, Market