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

Key Points

• Aramark has a consensus analyst rating of “Moderate Buy”, with 11 of 13 covering firms rating the stock a buy and an average 12-month target price of about $58.29.
• Several analysts recently raised their price targets, including JPMorgan, Bank of America, Citigroup, and RBC, reflecting growing optimism about the company’s shares.
• The company’s latest results topped expectations, with Q3 earnings of $0.49 per share versus $0.47 expected and revenue of $4.91 billion, up 14.7% year over year.

Shares of Aramark (NYSE:ARMK - Get Free Report) have earned a consensus recommendation of "Moderate Buy" from the thirteen research firms that are covering the stock, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $58.2917.

A number of equities analysts recently issued reports on ARMK shares. JPMorgan Chase & Co. boosted their target price on shares of Aramark from $49.00 to $55.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 13th. Bank of America raised their price target on shares of Aramark from $59.00 to $62.00 and gave the stock a "buy" rating in a research report on Tuesday, June 2nd. Citigroup boosted their price objective on shares of Aramark from $63.00 to $70.50 and gave the stock a "buy" rating in a report on Monday, June 22nd. Royal Bank Of Canada upped their price objective on shares of Aramark from $47.00 to $55.00 and gave the company an "outperform" rating in a research report on Thursday, May 14th. Finally, Weiss Ratings reiterated a "hold (c+)" rating on shares of Aramark in a research note on Wednesday.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of ARMK. Elevation Wealth Partners LLC lifted its position in Aramark by 2,842.9% in the second quarter. Elevation Wealth Partners LLC now owns 618 shares of the company's stock worth $35,000 after purchasing an additional 597 shares during the period. Activest Wealth Management acquired a new position in shares of Aramark in the 4th quarter valued at $27,000. Caitong International Asset Management Co. Ltd acquired a new position in shares of Aramark in the 3rd quarter valued at $28,000. Cedar Mountain Advisors LLC bought a new position in shares of Aramark during the 1st quarter worth about $32,000. Finally, Kestra Advisory Services LLC acquired a new stake in shares of Aramark during the 4th quarter valued at about $32,000.

Aramark Price Performance

NYSE ARMK opened at $57.94 on Monday. The stock has a 50-day simple moving average of $52.87 and a 200 day simple moving average of $44.84. Aramark has a twelve month low of $35.07 and a twelve month high of $58.20. The stock has a market capitalization of $15.23 billion, a PE ratio of 43.24, a P/E/G ratio of 1.10 and a beta of 1.11. The company has a debt-to-equity ratio of 1.85, a quick ratio of 1.07 and a current ratio of 1.21.

Aramark (NYSE:ARMK - Get Free Report) last released its earnings results on Tuesday, May 12th. The company reported $0.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.47 by $0.02. Aramark had a return on equity of 17.05% and a net margin of 1.84%.The firm had revenue of $4.91 billion for the quarter, compared to analyst estimates of $4.75 billion. During the same quarter last year, the firm posted $0.35 EPS. The company's revenue was up 14.7% on a year-over-year basis. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. Research analysts anticipate that Aramark will post 2.24 EPS for the current year.

Aramark Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 3rd. Shareholders of record on Wednesday, May 20th were given a $0.12 dividend. The ex-dividend date was Wednesday, May 20th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.8%. Aramark's dividend payout ratio (DPR) is currently 35.82%.

About Aramark

Aramark NYSE: ARMK is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark's offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.

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