Aramark (NYSE:ARMK) Sets New 1-Year High - Time to Buy?

Key Points

• Aramark shares hit a new 52-week high, trading as high as $57.40 and ending the session up about 2.1%. The move came amid noticeably stronger trading volume.
• Wall Street remains constructive on ARMK, with several firms recently raising price targets, including Bank of America to $62. Analysts now have a consensus rating of “Moderate Buy” and an average target price of $58.29.
• Recent fundamentals were solid, as Aramark beat quarterly earnings and revenue estimates, with revenue up 14.7% year over year. The company also announced a quarterly dividend of $0.12 per share, reflecting a 0.8% annual yield.

Shares of Aramark (NYSE:ARMK - Get Free Report) hit a new 52-week high on Thursday . The stock traded as high as $57.40 and last traded at $57.3950, with a volume of 280712 shares traded. The stock had previously closed at $56.49.

Analysts Set New Price Targets

A number of research firms recently issued reports on ARMK. Bank of America lifted their price target on shares of Aramark from $59.00 to $62.00 and gave the company a "buy" rating in a research note on Tuesday, June 2nd. Stifel Nicolaus increased their price objective on shares of Aramark from $47.00 to $54.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Royal Bank Of Canada boosted their target price on shares of Aramark from $47.00 to $55.00 and gave the stock an "outperform" rating in a research note on Thursday, May 14th. The Goldman Sachs Group restated a "buy" rating and set a $51.00 price target on shares of Aramark in a research report on Wednesday, May 13th. Finally, UBS Group raised their price target on shares of Aramark from $48.00 to $56.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. Eleven analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Aramark presently has a consensus rating of "Moderate Buy" and an average target price of $58.29.

Aramark Stock Up 2.1%

The company has a current ratio of 1.21, a quick ratio of 1.07 and a debt-to-equity ratio of 1.85. The business has a fifty day simple moving average of $52.37 and a two-hundred day simple moving average of $44.56. The company has a market cap of $15.16 billion, a PE ratio of 42.99, a price-to-earnings-growth ratio of 1.07 and a beta of 1.11.

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, topping analysts' consensus estimates of $0.47 by $0.02. The business had revenue of $4.91 billion during the quarter, compared to analyst estimates of $4.75 billion. Aramark had a net margin of 1.84% and a return on equity of 17.05%. The company's revenue for the quarter was up 14.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.35 earnings per share. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. As a group, equities research analysts predict that Aramark will post 2.24 earnings per share for the current year.

Aramark Announces Dividend

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

Institutional Investors Weigh In On Aramark

Large investors have recently made changes to their positions in the stock. Junto Capital Management LP purchased a new position in shares of Aramark in the third quarter valued at approximately $132,157,000. Capital International Investors lifted its holdings in Aramark by 2.4% during the 3rd quarter. Capital International Investors now owns 24,646,909 shares of the company's stock worth $946,455,000 after buying an additional 580,215 shares in the last quarter. JPMorgan Chase & Co. lifted its holdings in Aramark by 102.3% during the 3rd quarter. JPMorgan Chase & Co. now owns 1,320,269 shares of the company's stock worth $50,700,000 after buying an additional 667,528 shares in the last quarter. Bridgefront Capital LLC boosted its position in Aramark by 250.7% in the 3rd quarter. Bridgefront Capital LLC now owns 36,006 shares of the company's stock valued at $1,383,000 after buying an additional 25,738 shares during the period. Finally, Natixis Advisors LLC boosted its position in Aramark by 12.8% in the 3rd quarter. Natixis Advisors LLC now owns 305,462 shares of the company's stock valued at $11,730,000 after buying an additional 34,615 shares during the period.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.