Aramark $ARMK Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada has reduced its ownership in Aramark by 15.3%, selling 65,431 shares and holding 361,161 shares worth approximately $12.47 million at the end of the last quarter.
• Several institutional investors, including Massachusetts Financial Services and Fiduciary Management, have increased their stakes in Aramark, with Massachusetts Financial Services raising its holdings by 29.5%.
• Aramark reported earnings of $0.40 EPS for the last quarter, matching estimates, and announced a quarterly dividend yield of 1.1%, with a payout ratio of 31.11%.

Royal Bank of Canada cut its stake in Aramark (NYSE:ARMK - Free Report) by 15.3% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 361,161 shares of the company's stock after selling 65,431 shares during the quarter. Royal Bank of Canada owned about 0.14% of Aramark worth $12,467,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of the stock. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Aramark by 1.7% in the 1st quarter. Sumitomo Mitsui Trust Group Inc. now owns 26,504 shares of the company's stock worth $915,000 after acquiring an additional 438 shares during the last quarter. Xponance Inc. increased its stake in shares of Aramark by 1.5% in the 1st quarter. Xponance Inc. now owns 31,209 shares of the company's stock worth $1,077,000 after acquiring an additional 451 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its stake in shares of Aramark by 7.4% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 6,788 shares of the company's stock worth $253,000 after acquiring an additional 465 shares during the last quarter. Fifth Third Bancorp increased its stake in shares of Aramark by 21.1% in the 1st quarter. Fifth Third Bancorp now owns 2,859 shares of the company's stock worth $99,000 after acquiring an additional 499 shares during the last quarter. Finally, Bessemer Group Inc. increased its stake in shares of Aramark by 83.2% in the 1st quarter. Bessemer Group Inc. now owns 1,411 shares of the company's stock worth $49,000 after acquiring an additional 641 shares during the last quarter.

Aramark Stock Down 0.4%

ARMK traded down $0.15 during trading hours on Wednesday, hitting $37.42. 2,865,578 shares of the company's stock were exchanged, compared to its average volume of 1,813,797. The firm has a market cap of $9.83 billion, a P/E ratio of 27.71 and a beta of 1.22. Aramark has a 12-month low of $29.92 and a 12-month high of $44.49. The company has a current ratio of 1.29, a quick ratio of 1.14 and a debt-to-equity ratio of 2.03. The firm has a 50 day moving average of $40.61 and a 200 day moving average of $38.22.

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

Aramark Announces Dividend

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

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on ARMK shares. Wall Street Zen lowered shares of Aramark from a "buy" rating to a "hold" rating in a report on Saturday, August 9th. UBS Group set a $46.00 price target on shares of Aramark and gave the company a "buy" rating in a research note on Wednesday, August 6th. Robert W. Baird upgraded shares of Aramark from a "neutral" rating to an "outperform" rating and upped their price objective for the stock from $43.00 to $47.00 in a report on Wednesday, August 6th. Baird R W upgraded shares of Aramark from a "hold" rating to a "strong-buy" rating in a report on Wednesday, August 6th. Finally, Morgan Stanley upped their price target on Aramark from $42.00 to $44.00 and gave the stock an "equal weight" rating in a research note on Monday, June 30th. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $45.44.

About Aramark

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.