ARKO (NASDAQ:ARKO) Shares Gap Down After Earnings Miss
by Kim Johansen · The Markets DailyARKO Corp. (NASDAQ:ARKO – Get Free Report) shares gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $7.29, but opened at $6.76. ARKO shares last traded at $6.2220, with a volume of 199,062 shares traded.
The company reported $0.04 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.15 by ($0.11). ARKO had a net margin of 0.38% and a return on equity of 9.10%. The business had revenue of $2.35 billion for the quarter, compared to analyst estimates of $1.99 billion.
ARKO News Roundup
Here are the key news stories impacting ARKO this week:
- Positive Sentiment: ARKO reaffirmed its full-year 2026 financial guidance, which may reassure investors that management does not view the quarterly shortfall as a major change to its outlook. ARKO Corp. Reports Second Quarter 2026 Results
- Positive Sentiment: The company announced an agreement to acquire the business of U.S. Petroleum Partners, a vertically integrated fuel-supply and distribution platform. The transaction could expand ARKO’s fuel capabilities and create longer-term operating synergies, although execution and financing remain important considerations. ARKO Announces U.S. Petroleum Partners Acquisition
- Neutral Sentiment: Some third-party market feeds report different Q2 revenue and EPS figures than the company’s earnings release and other financial reports. Investors should rely on ARKO’s official filing and release when assessing the results. Official ARKO Second-Quarter Results
- Negative Sentiment: ARKO reported quarterly EPS of $0.04, below the $0.15 consensus estimate and down from $0.16 a year earlier. The earnings miss is the primary catalyst weighing on the shares. ARKO Q2 Earnings Lag Estimates
- Negative Sentiment: Although reported revenue exceeded consensus estimates in several reports, the company’s very low net margin—approximately 0.38%—leaves earnings highly sensitive to fuel margins, costs and sales mix. ARKO’s elevated debt-to-equity ratio of 1.93 could also increase balance-sheet risk as it pursues expansion.
Wall Street Analyst Weigh In
Several brokerages recently commented on ARKO. Weiss Ratings lowered shares of ARKO from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, May 21st. Mizuho set a $22.00 price target on shares of ARKO in a report on Tuesday, July 28th. Wall Street Zen downgraded shares of ARKO from a “buy” rating to a “hold” rating in a research note on Saturday, May 30th. Finally, Zacks Research lowered shares of ARKO from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $15.00.
Read Our Latest Report on ARKO
Insider Buying and Selling
In other news, General Counsel Maury Bricks sold 10,000 shares of the company’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $8.50, for a total value of $85,000.00. Following the sale, the general counsel directly owned 162,841 shares of the company’s stock, valued at $1,384,148.50. This represents a 5.79% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 21.90% of the company’s stock.
Institutional Inflows and Outflows
Several institutional investors have recently made changes to their positions in ARKO. Vanguard Group Inc. boosted its holdings in ARKO by 0.6% in the third quarter. Vanguard Group Inc. now owns 3,795,048 shares of the company’s stock valued at $17,343,000 after purchasing an additional 22,532 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of ARKO by 7.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 3,021,751 shares of the company’s stock valued at $16,800,000 after buying an additional 206,716 shares during the last quarter. Geode Capital Management LLC lifted its holdings in shares of ARKO by 0.4% in the 4th quarter. Geode Capital Management LLC now owns 1,903,496 shares of the company’s stock valued at $8,644,000 after buying an additional 7,735 shares during the period. Arrowstreet Capital Limited Partnership acquired a new position in shares of ARKO in the 1st quarter valued at about $8,220,000. Finally, Charles Schwab Investment Management Inc. boosted its stake in shares of ARKO by 18.5% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,448,758 shares of the company’s stock worth $6,577,000 after buying an additional 226,591 shares during the last quarter. Hedge funds and other institutional investors own 78.29% of the company’s stock.
ARKO Stock Performance
The firm has a fifty day moving average of $7.84 and a 200 day moving average of $6.72. The company has a debt-to-equity ratio of 1.93, a current ratio of 1.62 and a quick ratio of 1.19. The stock has a market capitalization of $724.52 million, a price-to-earnings ratio of 33.80 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.