Wellington Management Group LLP Cuts Position in Aramark $ARMK

Key Points

• Wellington Management Group LLP decreased its stake in Aramark shares by 56.5% in the first quarter, selling 262,069 shares and retaining 201,823 shares, valued at approximately $6.97 million.
• Aramark reported $0.40 earnings per share for the most recent quarter, matching analysts' expectations, and had a revenue of $4.63 billion, slightly below the anticipated $4.66 billion.
• The company announced a quarterly dividend of $0.105 per share, resulting in an annualized dividend yield of 1.1%, with a payout ratio of 31.11%.

Wellington Management Group LLP cut its position in shares of Aramark (NYSE:ARMK - Free Report) by 56.5% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 201,823 shares of the company's stock after selling 262,069 shares during the period. Wellington Management Group LLP owned approximately 0.08% of Aramark worth $6,967,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Massachusetts Financial Services Co. MA raised its position in Aramark by 29.5% during the first quarter. Massachusetts Financial Services Co. MA now owns 17,605,896 shares of the company's stock valued at $607,756,000 after purchasing an additional 4,012,162 shares during the period. Janus Henderson Group PLC raised its position in Aramark by 3.5% during the fourth quarter. Janus Henderson Group PLC now owns 16,268,682 shares of the company's stock valued at $606,986,000 after purchasing an additional 554,239 shares during the period. Dimensional Fund Advisors LP raised its position in Aramark by 16.3% during the first quarter. Dimensional Fund Advisors LP now owns 5,762,907 shares of the company's stock valued at $198,922,000 after purchasing an additional 809,792 shares during the period. PointState Capital LP raised its position in Aramark by 135.4% during the fourth quarter. PointState Capital LP now owns 2,690,617 shares of the company's stock valued at $100,387,000 after purchasing an additional 1,547,792 shares during the period. Finally, Bank of America Corp DE raised its position in Aramark by 4.5% during the fourth quarter. Bank of America Corp DE now owns 2,457,094 shares of the company's stock valued at $91,674,000 after purchasing an additional 105,219 shares during the period.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Baird R W upgraded Aramark from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 6th. Wall Street Zen downgraded Aramark from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. Morgan Stanley increased their price target on Aramark from $42.00 to $44.00 and gave the stock an "equal weight" rating in a report on Monday, June 30th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $47.00 price target on shares of Aramark in a report on Wednesday, May 14th. Finally, Robert W. Baird upgraded Aramark from a "neutral" rating to an "outperform" rating and raised their price objective for the stock from $43.00 to $47.00 in a report on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, Aramark currently has an average rating of "Buy" and a consensus target price of $45.44.

Aramark Stock Down 1.2%

Shares of Aramark stock traded down $0.48 during trading on Tuesday, reaching $38.64. The company's stock had a trading volume of 726,099 shares, compared to its average volume of 2,023,459. The company has a quick ratio of 1.14, a current ratio of 1.29 and a debt-to-equity ratio of 2.03. The company has a market cap of $10.16 billion, a price-to-earnings ratio of 28.62 and a beta of 1.22. Aramark has a 1-year low of $29.92 and a 1-year high of $44.49. The company has a 50-day simple moving average of $41.54 and a two-hundred day simple moving average of $38.11.

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

Aramark Dividend Announcement

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

Aramark 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.