Aramark (NYSE:ARMK) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Aramark (NYSE:ARMK) has received a consensus rating of "Moderate Buy" from eleven analysts, with an average twelve-month target price of $45.33.
• The company reported earnings of $0.40 per share for the last quarter, matching analyst estimates, and had yearly revenue growth of 5.7%.
• Aramark recently declared a quarterly dividend of $0.105 per share, resulting in an annualized dividend yield of 1.1%.

Aramark (NYSE:ARMK - Get Free Report) has been given a consensus rating of "Moderate Buy" by the eleven analysts that are currently covering the company, Marketbeat reports. Two analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokerages that have covered the stock in the last year is $45.3333.

ARMK has been the topic of several recent research reports. Morgan Stanley upped their price objective on shares of Aramark from $42.00 to $44.00 and gave the company an "equal weight" rating in a report on Monday, June 30th. UBS Group dropped their price objective on shares of Aramark from $46.00 to $45.00 and set a "buy" rating on the stock in a report on Wednesday, October 1st. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Aramark in a report on Saturday, September 27th. Robert W. Baird raised shares of Aramark from a "neutral" rating to an "outperform" rating and upped their price objective for the company from $43.00 to $47.00 in a report on Wednesday, August 6th. Finally, Baird R W raised shares of Aramark from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 6th.

Aramark Price Performance

Shares of NYSE:ARMK opened at $39.34 on Friday. The company's 50-day moving average is $38.94 and its 200 day moving average is $38.60. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.14 and a current ratio of 1.29. The company has a market capitalization of $10.34 billion, a P/E ratio of 29.14 and a beta of 1.21. Aramark has a fifty-two week low of $29.92 and a fifty-two week high of $44.49.

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

Aramark Dividend Announcement

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

Institutional Investors Weigh In On Aramark

Several hedge funds and other institutional investors have recently modified their holdings of ARMK. Harbour Investments Inc. increased its position in shares of Aramark by 40,750.0% during the first quarter. Harbour Investments Inc. now owns 817 shares of the company's stock valued at $28,000 after buying an additional 815 shares during the period. Osterweis Capital Management Inc. bought a new stake in shares of Aramark during the second quarter valued at about $40,000. Parallel Advisors LLC increased its position in shares of Aramark by 160.7% during the second quarter. Parallel Advisors LLC now owns 1,100 shares of the company's stock valued at $46,000 after buying an additional 678 shares during the period. Thurston Springer Miller Herd & Titak Inc. increased its position in shares of Aramark by 241.3% during the second quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,116 shares of the company's stock valued at $47,000 after buying an additional 789 shares during the period. Finally, Bessemer Group Inc. increased its position in shares of Aramark by 83.2% during the first quarter. Bessemer Group Inc. now owns 1,411 shares of the company's stock valued at $49,000 after buying an additional 641 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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