Aramark (NYSE:ARMK) Receives Average Rating of "Buy" from Analysts

Key Points

• Aramark has received an average rating of "Buy" from ten analysts, with one strong buy recommendation and a target price of approximately $45.44.
• In its latest earnings report, Aramark matched analysts' expectations with an earnings per share of $0.40 and reported a year-over-year revenue increase of 5.7%.
• The company also recently announced a dividend of $0.105 per share, representing an annualized yield of 1.1%.

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

A number of analysts recently commented on the stock. Morgan Stanley lifted their target price 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. Robert W. Baird upgraded shares of Aramark from a "neutral" rating to an "outperform" rating and lifted their price objective for the company from $43.00 to $47.00 in a research note on Wednesday, August 6th. Baird R W upgraded shares of Aramark from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, August 6th. Royal Bank Of Canada restated an "outperform" rating and set a $47.00 price objective on shares of Aramark in a research note on Wednesday, May 14th. Finally, UBS Group set a $46.00 price objective on shares of Aramark and gave the company a "buy" rating in a research note on Wednesday, August 6th.

Aramark Stock Down 1.5%

ARMK stock opened at $39.4590 on Friday. The firm has a 50 day moving average of $41.64 and a 200 day moving average of $38.04. The stock has a market capitalization of $10.37 billion, a PE ratio of 29.23 and a beta of 1.33. The company has a quick ratio of 1.14, a current ratio of 1.29 and a debt-to-equity ratio of 2.03. Aramark has a 52 week low of $29.92 and a 52 week high of $44.49.

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

Aramark Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Wednesday, August 6th were paid a dividend of $0.105 per share. This represents a $0.42 annualized dividend and a yield of 1.1%. Aramark's payout ratio is 31.11%.

Hedge Funds Weigh In On Aramark

Large investors have recently made changes to their positions in the company. Sumitomo Mitsui Trust Group Inc. lifted its stake in shares of Aramark by 1.7% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 26,504 shares of the company's stock valued at $915,000 after purchasing an additional 438 shares during the period. GAMMA Investing LLC lifted its stake in shares of Aramark by 48.1% in the 1st quarter. GAMMA Investing LLC now owns 6,364 shares of the company's stock valued at $220,000 after purchasing an additional 2,067 shares during the period. Bessemer Group Inc. lifted its stake in shares of Aramark by 83.2% in the 1st quarter. Bessemer Group Inc. now owns 1,411 shares of the company's stock valued at $49,000 after purchasing an additional 641 shares during the period. State of Alaska Department of Revenue lifted its stake in shares of Aramark by 3.4% in the 1st quarter. State of Alaska Department of Revenue now owns 31,055 shares of the company's stock valued at $1,072,000 after purchasing an additional 1,020 shares during the period. Finally, Janney Montgomery Scott LLC lifted its stake in shares of Aramark by 553.3% in the 1st quarter. Janney Montgomery Scott LLC now owns 37,791 shares of the company's stock valued at $1,305,000 after purchasing an additional 32,006 shares during the period.

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.

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