Principal Financial Group Inc. Grows Position in Aramark $ARMK

Key Points

• Principal Financial Group increased its Aramark stake by 3.8% in the first quarter, bringing its holdings to 586,473 shares valued at about $23.8 million.
• Aramark reported strong quarterly results, with EPS of $0.49 beating estimates and revenue of $4.91 billion topping expectations, while revenue rose 14.7% year over year.
• Analysts remain generally upbeat on ARMK, with 11 Buy ratings, an average rating of “Moderate Buy,” and an average price target of $59.21 after several firms raised targets.

Principal Financial Group Inc. lifted its position in shares of Aramark (NYSE:ARMK - Free Report) by 3.8% during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 586,473 shares of the company's stock after purchasing an additional 21,267 shares during the quarter. Principal Financial Group Inc. owned about 0.22% of Aramark worth $23,776,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ARMK. Goldman Sachs Group Inc. boosted its holdings in shares of Aramark by 38.2% during the 1st quarter. Goldman Sachs Group Inc. now owns 489,646 shares of the company's stock valued at $16,903,000 after buying an additional 135,224 shares in the last quarter. Creative Planning increased its stake in shares of Aramark by 36.0% in the 2nd quarter. Creative Planning now owns 9,918 shares of the company's stock worth $415,000 after acquiring an additional 2,625 shares in the last quarter. Cetera Investment Advisers lifted its position in Aramark by 7.4% during the 2nd quarter. Cetera Investment Advisers now owns 8,294 shares of the company's stock valued at $347,000 after acquiring an additional 573 shares during the period. Arrowstreet Capital Limited Partnership bought a new stake in Aramark during the second quarter worth about $640,000. Finally, Cerity Partners LLC grew its holdings in Aramark by 61.5% in the second quarter. Cerity Partners LLC now owns 16,097 shares of the company's stock worth $674,000 after purchasing an additional 6,127 shares during the period.

Aramark Price Performance

NYSE ARMK opened at $56.52 on Tuesday. The stock has a market capitalization of $14.86 billion, a price-to-earnings ratio of 42.18, a PEG ratio of 1.08 and a beta of 1.11. Aramark has a 1-year low of $35.07 and a 1-year high of $58.68. The company has a debt-to-equity ratio of 1.85, a current ratio of 1.21 and a quick ratio of 1.07. The business's fifty day moving average price is $54.31 and its 200-day moving average price is $45.67.

Aramark (NYSE:ARMK - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The company reported $0.49 EPS for the quarter, topping the consensus estimate of $0.47 by $0.02. Aramark had a return on equity of 17.05% and a net margin of 1.84%.The company had revenue of $4.91 billion during the quarter, compared to analyst estimates of $4.75 billion. During the same quarter in the previous year, the company posted $0.35 earnings per share. Aramark's revenue was up 14.7% compared to the same quarter last year. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. On average, equities analysts predict that Aramark will post 2.24 earnings per share for the current year.

Aramark Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th were given a dividend of $0.12 per share. The ex-dividend date of this dividend was Wednesday, May 20th. This represents a $0.48 annualized dividend and a dividend yield of 0.8%. Aramark's dividend payout ratio is presently 35.82%.

Analyst Ratings Changes

A number of brokerages have weighed in on ARMK. Stifel Nicolaus raised their target price on shares of Aramark from $47.00 to $54.00 and gave the company a "buy" rating in a research note on Wednesday, May 13th. The Goldman Sachs Group restated a "buy" rating and issued a $51.00 price target on shares of Aramark in a research note on Wednesday, May 13th. Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Aramark in a research report on Wednesday, July 8th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $65.00 target price on shares of Aramark in a report on Monday, June 29th. Finally, Truist Financial raised their price target on Aramark from $50.00 to $58.00 and gave the company a "buy" rating in a report on Wednesday, May 13th. Eleven research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $59.21.

Aramark Company Profile

Aramark NYSE: ARMK is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark's offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.

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