Aramark (NYSE:ARMK) Stock Has Consensus Target Price of $69.14

Key Points

• Analysts maintain a positive outlook: Aramark has a consensus “Moderate Buy” rating, with 12 buy recommendations and two holds. The average 12-month price target is $69.14, above the stock’s reported $54.94 price.
• Recent results exceeded expectations: Aramark reported quarterly earnings of $0.52 per share versus the $0.48 consensus estimate, while revenue rose 9.3% year over year to $5.06 billion.
• Institutional ownership and shareholder returns remain notable: Major investors including BlackRock and Jupiter Topco established sizable positions, while Aramark pays a quarterly dividend of $0.12 per share, representing an annualized yield of about 0.9%.

Shares of Aramark (NYSE:ARMK - Get Free Report) have earned a consensus rating of "Moderate Buy" from the fourteen ratings firms that are currently covering the company, MarketBeat reports. Two analysts have rated the stock with a hold recommendation and twelve have given a buy recommendation to the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $69.14.

Several brokerages have recently weighed in on ARMK. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $70.00 price target on shares of Aramark in a research report on Wednesday, August 12th. New Street Research set a $70.00 price objective on shares of Aramark in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $74.00 target price on shares of Aramark in a report on Wednesday, August 12th. Stifel Nicolaus increased their target price on Aramark from $54.00 to $70.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th. Finally, Bank of America lifted their price target on Aramark from $59.00 to $62.00 and gave the company a "buy" rating in a report on Tuesday, June 2nd.

Hedge Funds Weigh In On Aramark

Large investors have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in Aramark during the 2nd quarter valued at approximately $1,411,586,000. Jupiter Topco LLC acquired a new stake in shares of Aramark during the second quarter worth $1,041,407,000. Capital International Investors grew its holdings in shares of Aramark by 1.0% during the fourth quarter. Capital International Investors now owns 24,894,503 shares of the company's stock valued at $917,789,000 after buying an additional 247,594 shares during the last quarter. Janus Henderson Group PLC grew its holdings in shares of Aramark by 0.7% during the fourth quarter. Janus Henderson Group PLC now owns 18,195,901 shares of the company's stock valued at $670,702,000 after buying an additional 128,199 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Aramark by 13.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 7,177,184 shares of the company's stock valued at $290,962,000 after acquiring an additional 868,900 shares during the period.

Aramark Price Performance

Aramark stock opened at $54.94 on Friday. The company has a debt-to-equity ratio of 1.80, a current ratio of 1.28 and a quick ratio of 1.14. The firm has a 50-day moving average of $57.70 and a two-hundred day moving average of $51.92. The stock has a market cap of $14.48 billion, a price-to-earnings ratio of 38.42, a price-to-earnings-growth ratio of 0.95 and a beta of 1.12. Aramark has a 1 year low of $35.07 and a 1 year high of $62.65.

Aramark (NYSE:ARMK - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $0.52 earnings per share for the quarter, topping analysts' consensus estimates of $0.48 by $0.04. The company had revenue of $5.06 billion during the quarter, compared to analyst estimates of $4.94 billion. Aramark had a net margin of 1.93% and a return on equity of 17.68%. The firm's revenue for the quarter was up 9.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.40 earnings per share. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. On average, research analysts forecast that Aramark will post 2.27 earnings per share for the current year.

Aramark Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 19th were given a dividend of $0.12 per share. The ex-dividend date of this dividend was Wednesday, August 19th. This represents a $0.48 dividend on an annualized basis and a yield of 0.9%. Aramark's dividend payout ratio (DPR) is presently 33.57%.

About Aramark

Aramark NYSE: ARMK is a global provider of food services and facilities management solutions. The company serves organizations across education, healthcare, business and industry, sports and leisure, corrections, and other institutional markets.

Its food services include dining operations, catering, concessions, hospitality, and culinary programs. Aramark also provides facilities services such as housekeeping, plant operations, maintenance, workplace services, and related support programs designed to help clients manage their physical environments.

Headquartered in Philadelphia, Aramark serves customers in the United States and internationally.

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