Arcos Dorados (NYSE:ARCO) Stock Sees Unusually High Put Option Buying

Arcos Dorados Holdings Inc. (NYSE:ARCO) was the target of some unusual options trading activity on Thursday. Investors acquired 5,000 put options on the company. This represents an increase of 2,215% compared to the average daily volume of 216 put options.

Arcos Dorados Stock Performance

ARCO stock traded down $0.17 during midday trading on Thursday, reaching $7.92. 311,719 shares of the company’s stock traded hands, compared to its average volume of 1,388,440. The company has a current ratio of 0.88, a quick ratio of 0.81 and a debt-to-equity ratio of 1.14. Arcos Dorados has a 52-week low of $6.67 and a 52-week high of $9.75. The stock has a market cap of $1.67 billion, a P/E ratio of 6.50 and a beta of 0.48. The stock’s 50-day moving average is $7.83 and its 200 day moving average is $8.26.

Arcos Dorados (NYSE:ARCO) last issued its quarterly earnings results on Friday, August 14th. The restaurant operator reported $0.22 earnings per share for the quarter, topping the consensus estimate of $0.15 by $0.07. Arcos Dorados had a net margin of 5.15% and a return on equity of 12.50%. The business had revenue of $1.31 billion for the quarter, compared to analysts’ expectations of $1.28 billion. As a group, analysts anticipate that Arcos Dorados will post 0.80 EPS for the current year.

Analysts Set New Price Targets

A number of analysts recently commented on the company. JPMorgan Chase & Co. upgraded Arcos Dorados from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $9.00 to $10.50 in a research report on Friday, July 17th. Zacks Research raised Arcos Dorados from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Wall Street Zen cut Arcos Dorados from a “buy” rating to a “hold” rating in a research report on Saturday, October 10th. Finally, Weiss Ratings upgraded Arcos Dorados from a “hold (c-)” rating to a “hold (c)” rating in a research note on Thursday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Buy” and a consensus target price of $10.50.

Hedge Funds Weigh In On Arcos Dorados

Institutional investors have recently bought and sold shares of the stock. Public Employees Retirement System of Ohio purchased a new position in Arcos Dorados during the second quarter valued at $31,000. FNY Investment Advisers LLC bought a new stake in Arcos Dorados during the second quarter valued at about $40,000. Squarepoint Ops LLC purchased a new stake in Arcos Dorados in the second quarter worth about $81,000. Baird Financial Group Inc. purchased a new stake in Arcos Dorados in the second quarter worth about $87,000. Finally, Bank of Nova Scotia purchased a new stake in Arcos Dorados in the first quarter worth about $116,000. 55.91% of the stock is owned by institutional investors.

About Arcos Dorados

Arcos Dorados Holdings Inc (NYSE: ARCO) is the largest independent McDonald’s franchisee in the world. The company operates and franchises McDonald’s restaurants across Latin America and the Caribbean under a master franchise agreement with McDonald’s Corporation.

Its restaurants offer McDonald’s products, including hamburgers, chicken items, french fries, breakfast products, beverages, desserts and other menu offerings. Arcos Dorados also provides services such as McCafé, McDelivery, digital ordering and drive-thru operations, depending on the market.

Headquartered in Buenos Aires, Argentina, Arcos Dorados serves customers in approximately 20 countries and territories, including Argentina, Brazil, Chile, Colombia, Mexico, Peru, Puerto Rico, Uruguay and Venezuela.