Aramark (ARMK) Lifted to Buy at Zacks Investment Research
Aramark (NYSE:ARMK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report released on Friday. The brokerage presently has a $42.00 price objective on the stock. Zacks Investment Research‘s price target would indicate a potential upside of 14.04% from the stock’s previous close.
According to Zacks, “ARAMARK Holdings Corporation offers food services, facilities management, uniform and career apparel to health care institutions, universities, school districts, stadiums and businesses. It operates primarily in three segments: Food and Support Services North America, Food and Support Services International and Uniform and Career Apparel segment. The company’s FSS North America and FSS International segment provides food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping. Uniform segment provides rental, sale, cleaning, maintenance and delivery of personalized uniform and career apparel and other textile items. It operates primarily in North America, United Kingdom, Germany, Chile and Ireland. ARAMARK Holdings Corporation is headquartered in Philadelphia, PA. “
Several other equities analysts have also recently commented on the stock. Deutsche Bank AG initiated coverage on shares of Aramark in a research report on Wednesday, February 22nd. They issued a “buy” rating and a $42.00 target price for the company. Goldman Sachs Group Inc upgraded shares of Aramark from a “buy” rating to a “conviction-buy” rating and set a $44.00 target price for the company in a research report on Thursday, March 2nd. Finally, Royal Bank of Canada restated a “buy” rating and issued a $42.00 target price on shares of Aramark in a research report on Friday, January 20th. Two equities research analysts have rated the stock with a hold rating, seven have given a buy rating and one has given a strong buy rating to the company. The stock currently has an average rating of “Buy” and an average price target of $42.70.
Aramark (NYSE:ARMK) traded down 0.78% on Friday, reaching $36.83. 857,462 shares of the company traded hands. The firm has a market cap of $9.03 billion, a P/E ratio of 28.29 and a beta of 0.48. Aramark has a 52-week low of $31.38 and a 52-week high of $38.30. The stock has a 50-day moving average price of $36.62 and a 200-day moving average price of $35.77.
Aramark (NYSE:ARMK) last issued its earnings results on Tuesday, May 9th. The company reported $0.45 EPS for the quarter, beating the consensus estimate of $0.37 by $0.08. The company had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.63 billion. Aramark had a net margin of 2.21% and a return on equity of 18.87%. The business’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same period in the previous year, the company earned $0.39 EPS. Analysts anticipate that Aramark will post $1.95 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 6th. Investors of record on Wednesday, May 17th will be given a dividend of $0.103 per share. This represents a $0.41 dividend on an annualized basis and a yield of 1.12%. The ex-dividend date is Monday, May 15th. Aramark’s dividend payout ratio is 32.03%.
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In related news, EVP Stephen R. Reynolds sold 14,000 shares of the company’s stock in a transaction that occurred on Thursday, February 23rd. The shares were sold at an average price of $35.79, for a total transaction of $501,060.00. Following the completion of the transaction, the executive vice president now directly owns 92,252 shares in the company, valued at approximately $3,301,699.08. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Lynn Mckee sold 118,000 shares of the company’s stock in a transaction that occurred on Friday, February 24th. The stock was sold at an average price of $35.72, for a total transaction of $4,214,960.00. Following the transaction, the executive vice president now owns 254,622 shares of the company’s stock, valued at $9,095,097.84. The disclosure for this sale can be found here. 2.90% of the stock is owned by corporate insiders.
Institutional investors have recently added to or reduced their stakes in the company. Israel Discount Bank of New York GFN acquired a new stake in Aramark during the fourth quarter worth $102,000. Israel Discount Bank of New York acquired a new stake in Aramark during the first quarter worth $103,000. Seven Eight Capital LP acquired a new stake in Aramark during the fourth quarter worth $142,000. MU Investments Co. Ltd. acquired a new stake in Aramark during the second quarter worth $148,000. Finally, Pacer Advisors Inc. raised its stake in Aramark by 3.3% in the first quarter. Pacer Advisors Inc. now owns 4,497 shares of the company’s stock worth $166,000 after buying an additional 143 shares during the last quarter. Institutional investors and hedge funds own 93.34% of the company’s stock.
Aramark Company Profile
Aramark is a global provider of food, facilities and uniform services to education, healthcare, business and industry, and sports, leisure and corrections clients. The Company operates through three segments: Food and Support Services North America (FSS North America), Food and Support Services International (FSS International), and Uniform and Career Apparel (Uniform).
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