Aramark (NYSE:ARMK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Friday, May 12th. The brokerage presently has a $42.00 target price on the stock. Zacks Investment Research‘s price target points to a potential upside of 2.84% from the company’s current price.
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. “
Other research analysts have also recently issued reports about the stock. Deutsche Bank AG raised their price objective on shares of Aramark from $42.00 to $48.00 and gave the stock a “buy” rating in a research note on Wednesday, May 10th. Goldman Sachs Group, Inc. (The) raised shares of Aramark from a “buy” rating to a “conviction-buy” rating and set a $44.00 price objective for the company in a research note on Thursday, March 2nd. Finally, Royal Bank Of Canada restated a “buy” rating and set a $42.00 target price on shares of Aramark in a research report on Friday, January 20th. Two analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $42.70.
Aramark (NYSE:ARMK) traded up 0.62% during trading on Friday, hitting $40.84. The stock had a trading volume of 1,526,875 shares. Aramark has a 52-week low of $31.38 and a 52-week high of $40.96. The company has a market cap of $9.97 billion, a price-to-earnings ratio of 31.37 and a beta of 0.50. The firm’s 50-day moving average price is $37.79 and its 200-day moving average price is $36.18.
Aramark (NYSE:ARMK) last issued its earnings results on Tuesday, May 9th. The company reported $0.45 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.37 by $0.08. Aramark had a net margin of 2.23% and a return on equity of 19.13%. The company had revenue of $3.62 billion during the quarter, compared to analysts’ expectations of $3.63 billion. During the same period last year, the company posted $0.39 earnings per share. The firm’s quarterly revenue was up 1.3% compared to the same quarter last year. Analysts predict that Aramark will post $1.96 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 6th. Investors of record on Wednesday, May 17th were issued a dividend of $0.103 per share. The ex-dividend date of this dividend was Monday, May 15th. This represents a $0.41 annualized dividend and a dividend yield of 1.01%. Aramark’s payout ratio is 31.78%.
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In related news, EVP Stephen R. Reynolds sold 30,000 shares of Aramark stock in a transaction on Wednesday, June 14th. The shares were sold at an average price of $40.41, for a total transaction of $1,212,300.00. Following the transaction, the executive vice president now owns 62,460 shares in the company, valued at approximately $2,524,008.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, VP James J. Tarangelo sold 3,000 shares of Aramark stock in a transaction on Thursday, May 25th. The stock was sold at an average price of $37.15, for a total transaction of $111,450.00. Following the sale, the vice president now directly owns 2,871 shares in the company, valued at approximately $106,657.65. The disclosure for this sale can be found here. Insiders have sold a total of 133,000 shares of company stock worth $5,184,750 in the last 90 days. Company insiders own 2.90% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its stake in Aramark by 3.8% in the first quarter. Vanguard Group Inc. now owns 19,369,393 shares of the company’s stock valued at $714,150,000 after buying an additional 714,510 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in Aramark by 64.9% in the third quarter. Price T Rowe Associates Inc. MD now owns 13,287,679 shares of the company’s stock valued at $505,330,000 after buying an additional 5,229,490 shares during the last quarter. BlackRock Inc. increased its stake in Aramark by 4,277.8% in the first quarter. BlackRock Inc. now owns 12,453,306 shares of the company’s stock valued at $459,151,000 after buying an additional 12,168,838 shares during the last quarter. Atlanta Capital Management Co. L L C increased its stake in Aramark by 15.9% in the fourth quarter. Atlanta Capital Management Co. L L C now owns 7,274,420 shares of the company’s stock valued at $259,842,000 after buying an additional 997,654 shares during the last quarter. Finally, Capital Research Global Investors bought a new stake in Aramark during the third quarter valued at $216,175,000. 95.27% of the stock is currently owned by hedge funds and other institutional investors.
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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