Keenan Capital LLC recently announced the acquisition of new stake in Arco Platform Limited (NASDAQ:ARCE). The institutional investor has increased its shareholding in the Consumer Defensive company by 6.26% to 4.1 million shares with purchase of 0.24 million shares. This fresh investment now brings its stake to 13.92% valued currently at $55.33 million. In addition, Wishbone Management LP raised its holdings by 0.25 million to 2.3 million shares. And T. Rowe Price International Ltd. has lifted its position by 2.60% or 48135.0 shares – to 1.9 million shares.
With over 0.11 million Arco Platform Limited (ARCE) shares trading Tuesday and a closing price of $13.77 on the day, the dollar volume was approximately $1.46 million. The shares have shown a negative half year performance of -0.58% and its price on 01/24/23 gained nearly 0.51%. Currently, there are 55.81M common shares owned by the public and among those 37.31M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 7 analysts who have offered their price forecasts for ARCE have a consensus price objective of $91.92. The analysts have set the share’s price value over the next 12 months at a high of $96.22 and a low of $87.45. The average price target is 23.75% above its recent price level and an upside to the estimated low will see the stock gain 84.25% over that period. But an upside of 85.69% will see the stock hit the forecast high price target while median target price for the stock is $92.71.
The top 3 mutual fund holders in Arco Platform Limited are American Funds Small Cap World Fu, T Rowe Price International Discov, and CS Invt. Fds. 2 -. American Funds Small Cap World Fu owns 2.55 million shares of the company’s stock, all valued at over $34.46 million. The company sold -0.93 million shares recently to bring their total holdings to about 8.67% of the shares outstanding. CS Invt. Fds. 2 – now owns shares totaling to 1.70% of the shares outstanding.
Shares of Arco Platform Limited (NASDAQ: ARCE) opened at $13.62, down -$0.08 from a prior closing price of $13.70. However, the script later moved the day high at 14.02, up 0.51%. The company’s stock has a 5-day price change of 2.38% and 29.42% over the past three months. ARCE shares are trading 2.00% year to date (YTD), with the 12-month market performance down to -29.17% lower. It has a 12-month low price of $7.85 and touched a high of $22.74 over the same period. ARCE has an average intraday trading volume of 250.74K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.73%, 16.74%, and -2.19% respectively.
Institutional ownership of Arco Platform Limited (NASDAQ: ARCE) shares accounts for 99.10% of the company’s 55.81M shares outstanding. Mutual fund holders own 27.49%, while other institutional holders and individual stakeholders account for 63.40% and — respectively.
It has a market capitalization of $910.89M and a beta (3y monthly) value of 0.53. The stock’s trailing 12-month PE ratio is 860.63, while the earnings-per-share (ttm) stands at $0.02. The company has a PEG of 48.84 and a Quick Ratio of 1.30 with the debt-to-equity ratio at 1.04. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.53% over the week and 5.00% over the month.
Analysts forecast that Arco Platform Limited (ARCE) will achieve an EPS of -$0.28 for the current quarter, $0.43 for the next quarter and $0.55 for 2023. The lowest estimate earnings-per-share for the quarter is -$0.38 while analysts give the company a high EPS estimate of -$0.19. Comparatively, EPS for the current quarter was -$0.47 a year ago. Earnings per share for the fiscal year are expected to increase by 157.60%, and 33.18% over the next financial year. EPS should grow at an annualized rate of 17.62% over the next five years, compared to -32.30% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 7 brokerage firm advisors rate Arco Platform Limited (ARCE) as a “Moderate Buy” at a consensus score of 2.30. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 2 of the 7 advise that investors “hold,” and 0 rated it as a “Sell.”
Looking at the support for the ARCE, a number of firms have released research notes about the stock. Goldman stated their Neutral rating for the stock in a research note on October 27, 2022, with the firm’s price target at $19-$12. JP Morgan coverage for the Arco Platform Limited (ARCE) stock in a research note released on August 30, 2022 offered a Overweight rating with a price target of $20. Credit Suisse was of a view on August 26, 2022 that the stock is Neutral, while JP Morgan gave the stock Neutral rating on February 16, 2022, issuing a price target of $22. Itau BBA on their part issued Outperform rating on June 18, 2021.
