Aramark (NYSE:ARMK) Reaches New 12-Month High Following Strong Earnings

Key Points

• Aramark shares reached a new 52-week high of $60.58 after the company reported quarterly EPS of $0.52, surpassing analysts’ $0.48 estimate. Revenue increased 9.3% year over year.
• The company declared a quarterly dividend of $0.12 per share, equivalent to $0.48 annually and a 0.8% yield, with payment scheduled for September 9.
• Analysts remain broadly bullish, with 11 Buy ratings and two Holds; Aramark’s average price target is $60.62, while recent targets from Citigroup and Truist Financial reached $70.50 and $70, respectively.

Aramark (NYSE:ARMK - Get Free Report)'s stock price hit a new 52-week high during trading on Tuesday following a stronger than expected earnings report. The company traded as high as $60.58 and last traded at $60.28, with a volume of 377983 shares trading hands. The stock had previously closed at $55.71.

The company reported $0.52 EPS for the quarter, beating analysts' consensus estimates of $0.48 by $0.04. Aramark had a net margin of 1.84% and a return on equity of 17.05%. Aramark's quarterly revenue was up 9.3% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.40 earnings per share. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS.

Aramark Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Stockholders of record on Wednesday, August 19th will be issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Wednesday, August 19th. Aramark's dividend payout ratio is currently 35.82%.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $65.00 target price on shares of Aramark in a research report on Monday, June 29th. Stifel Nicolaus boosted their price target on Aramark from $47.00 to $54.00 and gave the stock a "buy" rating in a research note on Wednesday, May 13th. Citigroup increased their price objective on shares of Aramark from $63.00 to $70.50 and gave the company a "buy" rating in a research report on Monday, June 22nd. The Goldman Sachs Group reissued a "buy" rating and set a $51.00 target price on shares of Aramark in a research report on Wednesday, May 13th. Finally, Truist Financial upped their price target on shares of Aramark from $58.00 to $70.00 and gave the company a "buy" rating in a research note on Monday, July 27th. Eleven investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Aramark presently has an average rating of "Moderate Buy" and an average price target of $60.62.

Hedge Funds Weigh In On Aramark

Hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. acquired a new stake in Aramark during the 2nd quarter valued at approximately $1,411,586,000. AQR Capital Management LLC raised its holdings in shares of Aramark by 163.1% during the fourth quarter. AQR Capital Management LLC now owns 8,860,010 shares of the company's stock worth $326,580,000 after purchasing an additional 5,492,046 shares during the last quarter. Milford Funds Ltd. purchased a new position in shares of Aramark during the fourth quarter worth $181,204,000. Norges Bank acquired a new position in Aramark during the fourth quarter valued at $128,738,000. Finally, Cooke & Bieler LP purchased a new stake in Aramark in the fourth quarter valued at $118,110,000.

Aramark Stock Performance

The firm's fifty day simple moving average is $55.70 and its 200 day simple moving average is $47.62. The company has a market capitalization of $15.82 billion, a PE ratio of 45.02, a price-to-earnings-growth ratio of 1.06 and a beta of 1.12. The company has a debt-to-equity ratio of 1.85, a current ratio of 1.21 and a quick ratio of 1.07.

Aramark Company Profile

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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