Aramark (NYSE:ARMK) Given Consensus Recommendation of "Buy" by Brokerages

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 earned a consensus rating of "Buy" from the ten ratings firms that are presently covering the firm, MarketBeat reports. One analyst has rated the stock with a hold recommendation, eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $45.4444.

A number of equities research analysts have issued reports on ARMK shares. UBS Group set a $46.00 target price on Aramark and gave the company a "buy" rating in a research note on Wednesday, August 6th. Wall Street Zen cut Aramark from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. Baird R W upgraded Aramark from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 6th. Robert W. Baird upgraded Aramark from a "neutral" rating to an "outperform" rating and raised their target price for the company from $43.00 to $47.00 in a research note on Wednesday, August 6th. Finally, Morgan Stanley raised their price target on Aramark from $42.00 to $44.00 and gave the company an "equal weight" rating in a report on Monday, June 30th.

Aramark Stock Performance

Shares of ARMK opened at $37.80 on Tuesday. The business's fifty day moving average price is $40.83 and its 200 day moving average price is $38.23. Aramark has a 12-month low of $29.92 and a 12-month high of $44.49. The stock has a market capitalization of $9.94 billion, a PE ratio of 28.00 and a beta of 1.22. The company has a debt-to-equity ratio of 2.03, a current ratio of 1.29 and a quick ratio of 1.14.

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

Aramark Announces Dividend

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

Institutional Investors Weigh In On Aramark

A number of institutional investors have recently added to or reduced their stakes in the company. Thrivent Financial for Lutherans lifted its position in Aramark by 29.6% in the second quarter. Thrivent Financial for Lutherans now owns 81,130 shares of the company's stock worth $3,397,000 after purchasing an additional 18,516 shares during the period. State of Wyoming grew its holdings in Aramark by 149.9% during the second quarter. State of Wyoming now owns 34,227 shares of the company's stock worth $1,433,000 after acquiring an additional 20,533 shares during the period. Hudson Bay Capital Management LP acquired a new position in Aramark during the second quarter worth about $6,932,000. Onex Canada Asset Management Inc. grew its holdings in Aramark by 2.4% during the second quarter. Onex Canada Asset Management Inc. now owns 513,494 shares of the company's stock worth $21,500,000 after acquiring an additional 12,274 shares during the period. Finally, Palisade Capital Management LP grew its holdings in Aramark by 6.1% during the second quarter. Palisade Capital Management LP now owns 97,811 shares of the company's stock worth $4,095,000 after acquiring an additional 5,600 shares during the period.

Aramark Company Profile

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.

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