Aramark (NYSE:ARMK) Stock Price Up 0.6% – Here’s Why

Aramark (NYSE:ARMK) traded up 0.6% during mid-day trading on Thursday . The company traded as high as $38.28 and last traded at $38.11. 331,738 shares changed hands during trading, a decline of 83% from the average session volume of 1,932,905 shares. The stock had previously closed at $37.87.

Wall Street Analyst Weigh In

Several research analysts have weighed in on ARMK shares. Morgan Stanley boosted their price target on Aramark from $40.00 to $43.00 and gave the company an “equal weight” rating in a report on Thursday, December 12th. Robert W. Baird upped their target price on Aramark from $44.00 to $45.00 and gave the company a “neutral” rating in a research note on Thursday, December 12th. Stifel Nicolaus raised their price target on Aramark from $43.00 to $45.00 and gave the stock a “buy” rating in a research note on Tuesday, November 12th. Truist Financial upped their price objective on shares of Aramark from $42.00 to $46.00 and gave the company a “buy” rating in a research note on Tuesday, November 12th. Finally, StockNews.com cut shares of Aramark from a “buy” rating to a “hold” rating in a research report on Tuesday, January 7th. Three analysts have rated the stock with a hold rating and nine have issued a buy rating to the stock. According to MarketBeat, Aramark presently has a consensus rating of “Moderate Buy” and a consensus price target of $43.00.

Aramark Price Performance

The company has a quick ratio of 0.72, a current ratio of 0.94 and a debt-to-equity ratio of 1.61. The company has a 50 day simple moving average of $38.61 and a 200-day simple moving average of $37.70. The stock has a market cap of $10.09 billion, a price-to-earnings ratio of 29.97 and a beta of 1.64.

Aramark (NYSE:ARMK) last posted its quarterly earnings results on Tuesday, February 4th. The company reported $0.51 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.48 by $0.03. The business had revenue of $4.55 billion for the quarter, compared to analyst estimates of $4.61 billion. Aramark had a return on equity of 14.72% and a net margin of 1.94%. The business’s revenue was up 3.3% compared to the same quarter last year. During the same period in the prior year, the company posted $0.41 EPS. As a group, research analysts anticipate that Aramark will post 1.92 EPS for the current fiscal year.

Aramark Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, February 24th. Investors of record on Monday, February 10th will be given a dividend of $0.105 per share. This represents a $0.42 dividend on an annualized basis and a dividend yield of 1.10%. The ex-dividend date of this dividend is Monday, February 10th. This is an increase from Aramark’s previous quarterly dividend of $0.00. Aramark’s dividend payout ratio is currently 33.07%.

Hedge Funds Weigh In On Aramark

Large investors have recently bought and sold shares of the business. CIBC Asset Management Inc raised its position in shares of Aramark by 3.6% during the 3rd quarter. CIBC Asset Management Inc now owns 7,621 shares of the company’s stock worth $295,000 after purchasing an additional 265 shares during the period. Oregon Public Employees Retirement Fund grew its stake in Aramark by 0.5% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 53,654 shares of the company’s stock worth $2,002,000 after buying an additional 276 shares during the last quarter. Jones Financial Companies Lllp increased its position in Aramark by 45.7% in the fourth quarter. Jones Financial Companies Lllp now owns 988 shares of the company’s stock worth $37,000 after buying an additional 310 shares during the period. Huntington National Bank boosted its holdings in shares of Aramark by 100.3% during the third quarter. Huntington National Bank now owns 681 shares of the company’s stock valued at $26,000 after acquiring an additional 341 shares during the period. Finally, Cadent Capital Advisors LLC grew its position in shares of Aramark by 4.7% during the third quarter. Cadent Capital Advisors LLC now owns 7,711 shares of the company’s stock worth $299,000 after acquiring an additional 349 shares during the last quarter.

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.