Junto Capital Management LP Buys New Position in Aramark $ARMK

Key Points

• Junto Capital Management LP has acquired a new stake in Aramark, purchasing approximately 1,347,016 shares valued at about $46.5 million, which represents 0.51% ownership of the company.
• Aramark's recent earnings report indicated a 5.7% increase in revenue year-over-year, revealing earnings per share (EPS) of $0.40, which met analyst expectations.
• The company has declared a quarterly dividend of $0.105 per share, resulting in an annualized dividend yield of 1.1%, with a payout ratio of 31.11%.

Junto Capital Management LP acquired a new stake in Aramark (NYSE:ARMK - Free Report) during the first quarter, according to its most recent filing with the SEC. The firm acquired 1,347,016 shares of the company's stock, valued at approximately $46,499,000. Junto Capital Management LP owned about 0.51% of Aramark at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the company. Sumitomo Mitsui Trust Group Inc. grew its position in Aramark by 1.7% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 26,504 shares of the company's stock valued at $915,000 after buying an additional 438 shares during the last quarter. Xponance Inc. boosted its position in shares of Aramark by 1.5% during the 1st quarter. Xponance Inc. now owns 31,209 shares of the company's stock worth $1,077,000 after purchasing an additional 451 shares in the last quarter. Wealth Enhancement Advisory Services LLC boosted its position in shares of Aramark by 7.4% during the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 6,788 shares of the company's stock worth $253,000 after purchasing an additional 465 shares in the last quarter. Fifth Third Bancorp boosted its position in shares of Aramark by 21.1% during the 1st quarter. Fifth Third Bancorp now owns 2,859 shares of the company's stock worth $99,000 after purchasing an additional 499 shares in the last quarter. Finally, Bessemer Group Inc. boosted its position 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 purchasing an additional 641 shares in the last quarter.

Aramark Trading Up 0.6%

Shares of NYSE:ARMK traded up $0.24 during trading on Thursday, reaching $39.19. 218,264 shares of the stock were exchanged, compared to its average volume of 2,016,035. The company has a debt-to-equity ratio of 2.03, a quick ratio of 1.14 and a current ratio of 1.29. Aramark has a 12-month low of $29.92 and a 12-month high of $44.49. The firm has a market cap of $10.30 billion, a price-to-earnings ratio of 29.01 and a beta of 1.22. The firm's 50-day moving average price is $41.46 and its 200 day moving average price is $38.12.

Aramark (NYSE:ARMK - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The company reported $0.40 earnings per share for the quarter, hitting analysts' consensus estimates of $0.40. The firm had revenue of $4.63 billion during the quarter, compared to analysts' expectations of $4.66 billion. Aramark had a return on equity of 15.67% and a net margin of 2.02%.Aramark's quarterly revenue was up 5.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.31 EPS. Aramark has set its FY 2025 guidance at 1.910-1.980 EPS. On average, sell-side analysts anticipate that Aramark will post 1.92 earnings per share for the current fiscal year.

Aramark Announces Dividend

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

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on ARMK shares. Baird R W upgraded shares of Aramark from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 6th. Wall Street Zen downgraded shares of Aramark from a "buy" rating to a "hold" rating in a research note on Saturday, August 9th. UBS Group set a $46.00 target price on shares of Aramark and gave the company a "buy" rating in a research note on Wednesday, August 6th. Morgan Stanley boosted their target price on shares of Aramark from $42.00 to $44.00 and gave the company an "equal weight" rating in a research note on Monday, June 30th. Finally, Robert W. Baird raised shares of Aramark from a "neutral" rating to an "outperform" rating and boosted their target price for the company from $43.00 to $47.00 in a research note on Wednesday, August 6th. One analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating and one has issued a Hold rating to the company's stock. Based on data from MarketBeat.com, Aramark has a consensus rating of "Buy" and an average target price 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.