ARKO (NASDAQ:ARKO) Shares Down 10.2% Following Weak Earnings

ARKO Corp. (NASDAQ:ARKO)’s share price was down 10.2% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $5.06 and last traded at $5.0850. 290,691 shares traded hands during mid-day trading, a decline of 63% from the average session volume of 785,269 shares. The stock had previously closed at $5.66.

The company reported $0.04 earnings per share for the quarter, missing analysts’ consensus estimates of $0.15 by ($0.11). ARKO had a net margin of 0.19% and a return on equity of 4.44%. The company had revenue of $2.35 billion for the quarter, compared to the consensus estimate of $1.99 billion.

ARKO Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, August 31st. Stockholders of record on Thursday, August 20th will be issued a $0.03 dividend. The ex-dividend date of this dividend is Thursday, August 20th. This represents a $0.12 annualized dividend and a dividend yield of 2.4%. ARKO’s dividend payout ratio is presently 171.43%.

Analyst Ratings Changes

Several equities research analysts have issued reports on the company. Wall Street Zen lowered ARKO from a “buy” rating to a “hold” rating in a research note on Saturday, May 30th. Raymond James Financial downgraded ARKO from a “strong-buy” rating to an “outperform” rating and reduced their price target for the company from $8.00 to $7.00 in a report on Monday. Zacks Research cut ARKO from a “strong-buy” rating to a “hold” rating in a research report on Monday, July 13th. Weiss Ratings lowered shares of ARKO from a “hold (c-)” rating to a “sell (d+)” rating in a research note on Thursday, May 21st. Finally, Mizuho set a $22.00 price objective on ARKO in a research report on Tuesday, July 28th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, ARKO has an average rating of “Hold” and a consensus target price of $14.50.

Insider Buying and Selling

In other news, General Counsel Maury Bricks sold 15,000 shares of the stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $7.69, for a total value of $115,350.00. Following the sale, the general counsel directly owned 182,841 shares in the company, valued at approximately $1,406,047.29. This represents a 7.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Insiders own 21.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its holdings in ARKO by 201.9% during the first quarter. Royal Bank of Canada now owns 6,681 shares of the company’s stock valued at $37,000 after buying an additional 4,468 shares during the period. MQS Management LLC bought a new stake in ARKO during the 4th quarter valued at $47,000. Wealth Enhancement Advisory Services LLC bought a new stake in ARKO during the 4th quarter valued at $46,000. Tower Research Capital LLC TRC increased its holdings in shares of ARKO by 193.1% in the 2nd quarter. Tower Research Capital LLC TRC now owns 12,317 shares of the company’s stock valued at $52,000 after acquiring an additional 8,115 shares during the period. Finally, Walleye Capital LLC bought a new position in shares of ARKO in the 1st quarter worth $69,000. 78.29% of the stock is currently owned by institutional investors.

ARKO Stock Down 10.7%

The business has a 50 day moving average of $7.80 and a two-hundred day moving average of $6.73. The company has a debt-to-equity ratio of 1.93, a quick ratio of 1.19 and a current ratio of 1.62. The stock has a market capitalization of $567.01 million, a PE ratio of 72.49 and a beta of 1.00.

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.