Aramark (NYSE:ARMK) Short Interest Down 22.9% in August

Key Points

• Aramark experienced a significant 22.9% decrease in short interest, with total short shares dropping from 7.19 million to 5.54 million in August 2023.
• The company reported earnings of $0.40 EPS for the last quarter, matching analysts’ expectations, while its revenue increased by 5.7% compared to the previous year.
• Recently, several institutional investors made notable adjustments to their holdings, including Massachusetts Financial Services, which increased its stake by 29.5%.

Aramark (NYSE:ARMK - Get Free Report) was the recipient of a large decrease in short interest in the month of August. As of August 15th, there was short interest totaling 5,540,000 shares, a decrease of 22.9% from the July 31st total of 7,190,000 shares. Based on an average trading volume of 1,910,000 shares, the short-interest ratio is currently 2.9 days. Based on an average trading volume of 1,910,000 shares, the short-interest ratio is currently 2.9 days.

Aramark Price Performance

ARMK stock traded down $0.36 during mid-day trading on Friday, reaching $38.51. The company's stock had a trading volume of 1,673,291 shares, compared to its average volume of 1,815,115. The stock has a market cap of $10.12 billion, a PE ratio of 28.53 and a beta of 1.22. The company has a current ratio of 1.29, a quick ratio of 1.14 and a debt-to-equity ratio of 2.03. Aramark has a fifty-two week low of $29.92 and a fifty-two week high of $44.49. The company's 50 day moving average is $40.92 and its two-hundred day moving average is $38.21.

Aramark (NYSE:ARMK - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.40 EPS for the quarter, meeting analysts' consensus estimates of $0.40. The company had revenue of $4.63 billion during 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%. Aramark's quarterly revenue was up 5.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.31 EPS. Aramark has set its FY 2025 guidance at 1.910-1.980 EPS. Equities research analysts expect that Aramark will post 1.92 EPS for the current year.

Aramark Dividend Announcement

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

Institutional Trading of Aramark

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

Wall Street Analysts Forecast Growth

ARMK has been the topic of several recent analyst reports. Morgan Stanley increased 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. UBS Group set a $46.00 target price on shares of Aramark and gave the stock a "buy" rating in a research note on Wednesday, August 6th. Robert W. Baird raised shares of Aramark from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $43.00 to $47.00 in a research note on Wednesday, August 6th. Wall Street Zen downgraded shares of Aramark from a "buy" rating to a "hold" rating in a research report on Saturday, August 9th. Finally, Baird R W upgraded shares of Aramark from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $45.44.

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.