ARKO (NASDAQ:ARKO) Shares Down 5.5% – Here’s What Happened

ARKO Corp. (NASDAQ:ARKO)’s stock price was down 5.5% on Friday . The company traded as low as $4.82 and last traded at $4.7650. Approximately 308,997 shares changed hands during mid-day trading, a decline of 44% from the average daily volume of 553,897 shares. The stock had previously closed at $5.04.

ARKO News Roundup

Here are the key news stories impacting ARKO this week:

• Positive Sentiment: Potential value unlocking — ARKO filed a registration statement to spin off and take its subsidiary ARKO Petroleum Corp. (APC) public, which could crystallize a separate valuation for the wholesale/fleet-fueling business and create optionality for ARKO shareholders and management to realize/allocate capital more efficiently. ARKO Petroleum files for US IPO
• Neutral Sentiment: Filing is preliminary — the S-1 has been filed but is not effective; terms, timing, size, pricing and use of proceeds are unknown. Execution, regulatory clearance and market conditions will determine whether and how the IPO proceeds. ARKO Corp Announces Filing of Registration Statement
• Negative Sentiment: Dilution and signaling risks — an IPO can dilute economic ownership (depending on structure) and may signal a need to raise capital; ARKO currently has a high debt/equity profile and thin net margins, so investors may worry about whether proceeds will simply plug funding gaps rather than drive growth. Registration Statement for Proposed IPO

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on ARKO. Zacks Research cut shares of ARKO from a “strong-buy” rating to a “hold” rating in a report on Monday, October 6th. Wall Street Zen upgraded ARKO from a “sell” rating to a “hold” rating in a research report on Sunday, November 16th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of ARKO in a research report on Monday. One equities research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $7.13.

ARKO Price Performance

The company has a debt-to-equity ratio of 3.93, a current ratio of 1.62 and a quick ratio of 1.18. The firm has a market capitalization of $545.45 million, a PE ratio of 44.50 and a beta of 0.83. The company has a 50-day moving average price of $4.49 and a 200-day moving average price of $4.57.

ARKO (NASDAQ:ARKO) last announced its earnings results on Wednesday, November 5th. The company reported $0.10 earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.02). The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $2 billion. ARKO had a net margin of 0.24% and a return on equity of 6.95%. Sell-side analysts forecast that ARKO Corp. will post 0.2 EPS for the current year.

ARKO Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, December 1st. Stockholders of record on Monday, November 17th were given a $0.03 dividend. This represents a $0.12 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, November 17th. ARKO’s payout ratio is currently 109.09%.

Institutional Trading of ARKO

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Jacobs Levy Equity Management Inc. lifted its stake in shares of ARKO by 274.0% during the 3rd quarter. Jacobs Levy Equity Management Inc. now owns 74,321 shares of the company’s stock worth $340,000 after purchasing an additional 54,451 shares during the period. Caxton Associates LLP increased its stake in ARKO by 65.2% in the third quarter. Caxton Associates LLP now owns 70,645 shares of the company’s stock valued at $323,000 after purchasing an additional 27,885 shares during the last quarter. Prosperity Wealth Management Inc. purchased a new position in ARKO during the third quarter worth about $226,000. Numerai GP LLC purchased a new position in ARKO during the third quarter worth about $75,000. Finally, Brevan Howard Capital Management LP acquired a new stake in ARKO in the 3rd quarter worth about $117,000. 78.29% of the stock is owned by hedge funds and other institutional investors.

About ARKO

ARKO Corp (NASDAQ: ARKO) is a downstream energy and convenience retail company based in Matthews, North Carolina. The company’s core operations encompass fuel supply, distribution and retailing through a network of terminals, independent dealer locations and company-operated convenience stores. ARKO’s fuel offerings include branded and unbranded gasoline and diesel, as well as lubricants and other petroleum products marketed under various regional and private labels.

In its retail segment, ARKO operates a portfolio of convenience stores under the Kangaroo Express banner, serving on-site customers with fuel, grab-and-go food items, beverages and everyday household essentials.