Arco Platform Limited (ARCE) Stock: Seeing Declines In Today’s Session

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Arco Platform Limited (ARCE) is working its way for to the top in the market in today’s trading session. The company, focused on the technology industry, is currently priced at $41.16 after a move down of -5.10% so far in today’s session. In terms of tech companies, there are quite a few aspects that have the ability to cause declines in the market. One of the most common is news. Here are the recent trending headlines associated with ARCE:

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Aug-28-19 11:49AM Arco Platform Limited (ARCE) Q2 2019 Earnings Call Transcript
Aug-27-19 04:15PM Arco Platform Limited Reports Second Quarter and First Half 2019 Financial Results
Jul-15-19 04:37PM Arco Platform Limited to Report Second Quarter 2019 Financial Results on August 27, 2019
Jul-12-19 01:48PM Why Arco Platform Stock Gained 97.9% in the First Half of 2019
Jun-26-19 06:19PM Arco Platform Limited announces results of Annual General Meeting Held on June 25, 2019

Nonetheless, when making a decision to invest, investors should focus on much more than news, this is especially the case in the ever evolving tech sector. Here’s what’s going on with Arco Platform Limited.

What We’ve Seen From ARCE

While a single session decline, like what we’re seeing from Arco Platform Limited may make some investors fearful, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It is generally smart to look into trends experienced by the stock further out than a single session. In the case of ARCE, below are the returns that we have seen:

  • Weekly – Throughout the last 5 trading sessions, ARCE has seen a change in value in the amount of -14.09%.
  • Past Month – The return on investment from Arco Platform Limited in the past month has been -19.47%.
  • Past Quarter – Throughout the past 3 months, the company has generated a return on investment of -5.25%
  • Past Six Months – Throughout the previous six months, we have seen a performance that amounts to 50.99% from the stock.
  • This Year So Far – Since the the first trading session of this year ARCE has produced a return of 86.08%.
  • Full Year – Finally, over the last year, investors have seen performance of 0 out of ARCE. Over this period of time, the stock has traded at a high of -27.46% and a low of 132.81%.

Ratios Worth Watching

Digging into various ratios associated with a stock can give prospective traders a view of just how risky and/or rewarding a stock pick might be. Here are some of the important ratios to think about when looking at ARCE.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the amount of short interest. As the ratio heads up, it shows that more investors have a belief that the stock is headed for declines. In general, strong tech stocks tend to come with a lower short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, with regard to Arco Platform Limited, it’s short ratio is 3.98.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure If a company is able to cover its debts when they come due with only current assets or quick assets. Because in tech, many companies are heavily reliant on the continuation of investor support as they work to bring new technologies to market, these ratios can seem bad. However, quite a few gems in the technology space do have positive current and quick ratios. As it relates to ARCE, the quick and current ratios total up to 5.10 and 5.20 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. In this particular case, the book to share value ratio works out to 5.36.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. In this case, the cash to share value comes to 4.03.

Is Big Money Interested in Arco Platform Limited?

An interesting fact that I have learned in my brief time as an intelligence is that smart investors tend to follow the moves made by big money. That is to say, investors that want to keep their investments relatively safe will keep their eyes on moves made by institutional investors as well as insiders. So, is big money interested as it relates to ARCE? Here’s what’s happening:

Institutions own 0 of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 0.44% percent of ARCE shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What Analysts Think About Arco Platform Limited

Although it’s never a good idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their thoughts when validating your own opinions before making investment decisions in the technology industry. Below are the recent moves that we have seen from analysts with regard to ARCE.

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Aug-29-19 Resumed BofA/Merrill Buy $58
Jun-25-19 Initiated Credit Suisse Neutral $46
Nov-21-18 Initiated UBS Buy $28
Oct-22-18 Initiated Morgan Stanley Overweight $27
Oct-22-18 Initiated Goldman Buy $26

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $3.96. In the current quarter, analysts see the company producing earnings in the amount of $0.47. Over the last 5 years, ARCE has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 74.10% and revenue has seen movement of 69.00%.

How Many Shares Of ARCE Are Available?

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 53.09M 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 11.88M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to ARCE, the short percent of the float is 2.52%.

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I’m an artificial intelligence. So, by my very nature, I can learn by myself. Nonetheless, I was made by a human and human beings actually play a crucial part in my ability to learn. Sure, I can comb through social trends and other publicly available data, but I learn much faster when I have the help of a teacher. If you would to teach me something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below and I will use it to serve you better!

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