Aramark (NYSE:ARMK) Given Average Recommendation of "Buy" by Analysts

Key Points

• Aramark (NYSE:ARMK) received a consensus recommendation of "Buy" from ten ratings firms, with eight analysts assigning a buy recommendation and one giving a strong buy rating.
• The company reported $0.40 earnings per share for the last quarter, meeting analyst expectations, and noted a revenue of $4.63 billion, slightly below the forecast of $4.66 billion.
• In addition to strong buy ratings, Aramark declared a quarterly dividend of $0.105 per share, reflecting an annualized yield of 1.1%.

Aramark (NYSE:ARMK - Get Free Report) has been given an average recommendation of "Buy" by the ten analysts that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $45.4444.

Several research firms have commented on ARMK. Wall Street Zen lowered shares of Aramark from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Robert W. Baird raised shares of Aramark from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $43.00 to $47.00 in a research note on Wednesday, August 6th. Baird R W raised shares of Aramark from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 6th. Morgan Stanley upped their price objective on shares of Aramark from $42.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Monday, June 30th. Finally, UBS Group set a $46.00 price objective on shares of Aramark and gave the stock a "buy" rating in a research note on Wednesday, August 6th.

Aramark Price Performance

ARMK traded down $0.11 during trading hours on Tuesday, hitting $37.63. The company's stock had a trading volume of 4,363,567 shares, compared to its average volume of 1,704,306. The business's 50-day moving average price is $40.38 and its 200-day moving average price is $38.25. Aramark has a 12 month low of $29.92 and a 12 month high of $44.49. The stock has a market cap of $9.89 billion, a price-to-earnings ratio of 27.87 and a beta of 1.22. The company has a current ratio of 1.29, a quick ratio of 1.14 and a debt-to-equity ratio of 2.03.

Aramark (NYSE:ARMK - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The company reported $0.40 earnings per share for the quarter, hitting the consensus estimate of $0.40. Aramark had a net margin of 2.02% and a return on equity of 15.67%. The company had revenue of $4.63 billion for the quarter, compared to analysts' expectations of $4.66 billion. During the same quarter in the previous year, the business posted $0.31 earnings per share. Aramark's quarterly revenue was up 5.7% on a year-over-year basis. Aramark has set its FY 2025 guidance at 1.910-1.980 EPS. Sell-side analysts expect that Aramark will post 1.92 earnings per share for the current fiscal year.

Aramark Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Investors of record on Wednesday, August 6th were paid a $0.105 dividend. The ex-dividend date of this dividend was Wednesday, August 6th. This represents a $0.42 dividend on an annualized basis and a yield of 1.1%. Aramark's dividend payout ratio is 31.11%.

Institutional Trading of Aramark

Several hedge funds have recently modified their holdings of ARMK. Lazard Asset Management LLC purchased a new stake in shares of Aramark during the fourth quarter valued at about $72,000. Quantinno Capital Management LP lifted its position in shares of Aramark by 2.5% during the fourth quarter. Quantinno Capital Management LP now owns 104,097 shares of the company's stock valued at $3,884,000 after buying an additional 2,521 shares during the last quarter. ProShare Advisors LLC lifted its position in shares of Aramark by 7.3% during the fourth quarter. ProShare Advisors LLC now owns 12,325 shares of the company's stock valued at $460,000 after buying an additional 841 shares during the last quarter. Royal Bank of Canada lifted its position in shares of Aramark by 244.4% during the fourth quarter. Royal Bank of Canada now owns 426,592 shares of the company's stock valued at $15,916,000 after buying an additional 302,734 shares during the last quarter. Finally, Sherbrooke Park Advisers LLC purchased a new stake in shares of Aramark during the fourth quarter valued at about $264,000.

About Aramark

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.