Diversified Management Inc. Grows Stock Holdings in Aramark $ARMK

Key Points

• Diversified Management Inc. increased its Aramark stake by 683.9% during the third quarter, ending with 108,109 shares valued at approximately $5.79 million.
• Aramark reported quarterly EPS of $0.52, exceeding estimates of $0.48, while revenue rose 9.3% year over year to $5.06 billion. The company also maintained a quarterly dividend of $0.12 per share.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $69.14, compared with the shares’ reported price of $55.56.

Diversified Management Inc. raised its position in Aramark (NYSE:ARMK - Free Report) by 683.9% in the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 108,109 shares of the company's stock after purchasing an additional 94,318 shares during the quarter. Aramark accounts for about 1.0% of Diversified Management Inc.'s holdings, making the stock its 22nd biggest holding. Diversified Management Inc.'s holdings in Aramark were worth $5,789,000 at the end of the most recent reporting period.

Several other institutional investors have also added to or reduced their stakes in the stock. Public Employees Retirement System of Ohio purchased a new position in Aramark in the 2nd quarter worth $4,248,000. Bank of America Corp DE purchased a new position in shares of Aramark during the second quarter valued at approximately $137,742,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Aramark in the second quarter worth $1,001,000. Corient Private Wealth LP grew its holdings in shares of Aramark by 477.3% during the second quarter. Corient Private Wealth LP now owns 65,214 shares of the company's stock valued at $3,711,000 after buying an additional 53,917 shares during the last quarter. Finally, BlackRock Inc. bought a new stake in shares of Aramark during the second quarter valued at approximately $1,411,586,000.

Aramark Trading Up 0.2%

Shares of NYSE:ARMK opened at $55.56 on Friday. Aramark has a 12-month low of $35.07 and a 12-month high of $62.65. The business's fifty day simple moving average is $57.32 and its 200-day simple moving average is $52.96. The company has a current ratio of 1.28, a quick ratio of 1.14 and a debt-to-equity ratio of 1.80. The company has a market capitalization of $14.65 billion, a PE ratio of 38.85, a P/E/G ratio of 0.80 and a beta of 1.12.

Aramark (NYSE:ARMK - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.48 by $0.04. The business had revenue of $5.06 billion during the quarter, compared to the consensus estimate of $4.94 billion. Aramark had a net margin of 1.93% and a return on equity of 17.68%. The business's revenue for the quarter was up 9.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.40 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 2.27 earnings per share for the current fiscal year.

Aramark Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 9th. Investors of record on Wednesday, August 19th were issued a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Wednesday, August 19th. Aramark's payout ratio is currently 33.57%.

Analyst Ratings Changes

ARMK has been the subject of a number of recent research reports. Stifel Nicolaus boosted their price target on Aramark from $54.00 to $70.00 and gave the company a "buy" rating in a research note on Wednesday, August 12th. Robert W. Baird increased their price target on Aramark from $63.00 to $69.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 12th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $74.00 price target on shares of Aramark in a report on Wednesday, August 12th. Weiss Ratings raised Aramark from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, September 10th. Finally, Citigroup upped their price target on Aramark from $70.50 to $74.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $69.14.

About Aramark

Aramark NYSE: ARMK is a provider of food services and facilities management. The company serves businesses, universities, schools, hospitals, sports and entertainment venues, correctional facilities, and other organizations through on-site dining, catering, concessions, refreshment services, and related hospitality offerings.

Its facilities services include custodial services, building operations and maintenance, workplace support, and other services designed to help clients manage their physical environments.

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