Aramark (NYSE:ARMK) Downgraded to “Sell” at StockNews.com

StockNews.com cut shares of Aramark (NYSE:ARMK) from a hold rating to a sell rating in a report published on Friday morning.

A number of other equities research analysts have also recently commented on the company. Bank of America increased their price target on Aramark from $36.00 to $39.00 and gave the company a buy rating in a research note on Wednesday, August 7th. Robert W. Baird increased their price objective on shares of Aramark from $37.00 to $38.00 and gave the company a neutral rating in a research report on Wednesday, August 7th. Truist Financial boosted their target price on shares of Aramark from $37.00 to $42.00 and gave the stock a buy rating in a research report on Thursday, September 12th. Morgan Stanley upped their price target on shares of Aramark from $35.00 to $38.00 and gave the company an equal weight rating in a research note on Monday, September 9th. Finally, Royal Bank of Canada lifted their price objective on shares of Aramark from $33.00 to $36.00 and gave the stock a sector perform rating in a research note on Wednesday, August 7th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and ten have given a buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of Moderate Buy and a consensus price target of $36.89.

Aramark Stock Up 0.2 %

Shares of Aramark stock opened at $38.27 on Friday. Aramark has a 52-week low of $23.95 and a 52-week high of $38.57. The firm’s 50 day moving average price is $34.99 and its 200-day moving average price is $33.25. The company has a quick ratio of 0.86, a current ratio of 0.96 and a debt-to-equity ratio of 1.71. The company has a market cap of $10.06 billion, a P/E ratio of 16.08, a PEG ratio of 2.04 and a beta of 1.62.

Aramark (NYSE:ARMK) last issued its quarterly earnings results on Tuesday, August 6th. The company reported $0.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $0.01. Aramark had a return on equity of 14.09% and a net margin of 1.93%. The business had revenue of $4.38 billion for the quarter, compared to the consensus estimate of $4.31 billion. During the same period in the prior year, the firm posted $0.36 earnings per share. The business’s quarterly revenue was up 8.0% on a year-over-year basis. On average, sell-side analysts predict that Aramark will post 1.57 EPS for the current fiscal year.

Aramark Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 3rd. Shareholders of record on Monday, August 19th were given a dividend of $0.095 per share. This represents a $0.38 annualized dividend and a yield of 0.99%. The ex-dividend date of this dividend was Monday, August 19th. Aramark’s dividend payout ratio is currently 15.97%.

Hedge Funds Weigh In On Aramark

Institutional investors and hedge funds have recently modified their holdings of the stock. Artisan Partners Limited Partnership raised its position in Aramark by 9.3% during the fourth quarter. Artisan Partners Limited Partnership now owns 391,727 shares of the company’s stock valued at $11,008,000 after acquiring an additional 33,206 shares in the last quarter. Bank of Nova Scotia lifted its stake in shares of Aramark by 84.7% in the 4th quarter. Bank of Nova Scotia now owns 1,192,142 shares of the company’s stock valued at $33,498,000 after purchasing an additional 546,796 shares during the period. SG Americas Securities LLC lifted its stake in shares of Aramark by 131.8% in the 1st quarter. SG Americas Securities LLC now owns 97,167 shares of the company’s stock valued at $3,160,000 after purchasing an additional 55,249 shares during the period. Public Sector Pension Investment Board purchased a new stake in Aramark during the fourth quarter worth $75,477,000. Finally, Vanguard Group Inc. increased its holdings in Aramark by 0.5% in the fourth quarter. Vanguard Group Inc. now owns 25,584,242 shares of the company’s stock valued at $718,917,000 after buying an additional 139,693 shares in the last quarter.

Aramark Company Profile

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.