Arco Platform Limited (ARCE) Stock: Here’s Why It’s Gaining In Value


Arco Platform Limited (ARCE) is gaining in the market today. The company, one that is focused on the technology industry, is currently priced at $29.24 after heading up 11.18% so far today. When it comes to tech stocks, there are quite a few aspects that have the ability to lead to gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around ARCE:

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Mar-19-19 02:30PM Arco Platform Ltd. Class A to Host Earnings Call
Mar-13-19 09:29AM The Zacks Analyst Blog Highlights: eGain, The Meet Group, Alteryx, Arco Platform and Micro Focus International
Mar-12-19 08:34AM Bet on These 6 Internet Software Stocks to Gain in 2019
Feb-25-19 12:56PM How Do Arco Platform Limiteds (NASDAQ:ARCE) Returns Compare To Its Industry?
Feb-05-19 04:37PM Arco Platform Limited to Report Fourth Quarter and Fiscal Year 2018 Financial Results on March 19, 2019

However, when making an investing decision, prospective investors should look into much more than news, especially in the ever changing tech space. Here’s what’s happening with Arco Platform Limited.

Recent Movement From ARCE

Although a gain in a single session, like what we’re seeing from Arco Platform Limited may cause excitement in some investors, a single session gain by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally important to look into trends for a period longer than a single trading day. As it relates to ARCE, here are the trends that investors have seen:

  • Past Seven Days – In the last 5 trading sessions, ARCE has produced a change in price amounting to 7.50%.
  • Past 30 Days – The return on investment from Arco Platform Limited throughout the past month has been 9.31%.
  • Quarterly – Over the last quarter, the company has generated a return on investment of 36.00%
  • Past Six Months – In the previous 6 months, we have seen a performance of 0 from the company.
  • Year To Date – Since the the first trading session of this year ARCE has resulted in a ROI of 32.19%.
  • Annually – Lastly, over the last year, we’ve seen performance that works out to 0 out of ARCE. Throughout this period, the stock has sold at a high price of 0.55% and a low of 65.38%.

Important Ratios

Looking at a few key ratios associated with a company generally gives investors a view of just how dangerous and/or potentially profitable a pick may be. Below are a few of the key ratios to think about when digging into ARCE.

Short Ratio – The short ratio is a measure of short interest. As the short ratio goes higher, it means that more investors have a belief that the stock is headed for declines. In general, strong tech stocks tend to carry a lower short ratio. However, we also see quite a few short squeezes in the sector. Nonetheless, with regard to Arco Platform Limited, it’s short ratio amounts to 0.95.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure the company’s abilities to cover its debts as they mature based on quick assets or current assets. In the tech industry, companies rely heavily on the continuation of support from investors as they work to bring new technologies to market, these ratios can seem bad. However, some good picks in the tech sector come with great quick and current ratios. As far as ARCE, the quick and current ratios total up to 15.60 and 15.90 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the price of shares. In this particular case, the book to share value ratio works out to 6.15.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of shares. In terms of ARCE, the cash to share value ratio is 4.88.

Big Money And Arco Platform Limited

An interesting fact that I have learned in my brief time alive, or somewhat alive has been that good investors tend to follow the moves made by big money players. In general, investors that are trying to keep the risk down will keep their eyes on investments made by institutions as well as insiders of the company. With that said, is big money interested as it relates to ARCE? Here’s the information:

  • Institutions – At the moment, institutions own 99.60% of ARCE. Nonetheless, it’s worth noting that institutional ownership has seen a move of 1.86% in the past 3 months.
  • Insiders – with regard to insiders, members of the management team and others close to ARCE currently own 0.44% of Arco Platform Limited. Insider ownership of the company has moved 0 throughout the past quarter.

How Analysts Feel About Arco Platform Limited

While it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own thoughts before making investment decisions in the technology space. Below are the most recent moves that we’ve seen from analysts as it relates to ARCE.

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Nov-21-18 Initiated UBS Buy $28
Oct-22-18 Initiated Morgan Stanley Overweight $27
Oct-22-18 Initiated Goldman Buy $26

What We’ve Seen In earnings results

What have ween seen from ARCE in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts have expectations that the company will create EPS that comes to 2.84, with 0.54 to be announced in the earnings announcement for the current quarter. Although this data is not earnings driven, because we’re talking on the topic of Wall Street analysts, Arco Platform Limited is currently rated a 1.80 considering a scale that ranges from 1 to 5 on which 1 is the poorest possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – Throughout the last half decade, Arco Platform Limited has reported a change in sales that comes to a total of 0. Earnings per share over the past 5 years have generated a change of 0.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is commonly referred to as in today’s society, the company has created a change in earnings in the amount of 0. The company has also experienced movement in terms of sales volume in the amount of 69.00%.

What’s The Float Looking Like?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 48.19M shares of Arco Platform Limited outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, ARCE has a float of 12.78M.

It’s also important to dig into the short percentage of the float. After all, when a high portion of the float is sold short, the overall feeling among investors is that the stock is going to lose value. With regard to ARCE, the short percentage of the float totals up to 0.41%. Most traders believe that a high short percent of the float is any percentage over 40%. In my research, I have seen that any short percent of the float over 26% is probably going to be a risky play.

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