Aramark (NYSE:ARMK) Receives Average Recommendation of “Moderate Buy” from Analysts

Aramark (NYSE:ARMK) has received an average rating of “Moderate Buy” from the seven analysts that are currently covering the firm, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold recommendation, four have assigned a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $45.8333.

A number of research firms recently issued reports on ARMK. Morgan Stanley raised their price objective on shares of Aramark from $43.00 to $44.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 17th. Stifel Nicolaus set a $44.00 price objective on shares of Aramark in a research report on Monday, November 17th. Weiss Ratings reiterated a “hold (c)” rating on shares of Aramark in a research report on Monday, December 22nd. UBS Group reaffirmed a “buy” rating on shares of Aramark in a research note on Monday, December 1st. Finally, Citigroup raised their price objective on Aramark from $46.50 to $49.00 and gave the company a “buy” rating in a research note on Wednesday, November 19th.

Aramark Trading Down 0.2%

NYSE ARMK opened at $37.34 on Thursday. Aramark has a twelve month low of $29.92 and a twelve month high of $44.49. The firm has a market capitalization of $9.81 billion, a PE ratio of 30.60, a P/E/G ratio of 1.32 and a beta of 1.12. The stock’s 50 day moving average is $37.89 and its 200 day moving average is $39.44. The company has a quick ratio of 0.88, a current ratio of 0.99 and a debt-to-equity ratio of 1.71.

Aramark (NYSE:ARMK) last announced its quarterly earnings results on Monday, November 17th. The company reported $0.57 earnings per share for the quarter, missing the consensus estimate of $0.65 by ($0.08). The firm had revenue of $5.05 billion for the quarter, compared to the consensus estimate of $5.16 billion. Aramark had a net margin of 1.76% and a return on equity of 16.39%. Aramark’s revenue was up 14.3% on a year-over-year basis. During the same period last year, the business earned $0.54 EPS. Aramark has set its FY 2026 guidance at 2.180-2.28 EPS. Research analysts forecast that Aramark will post 1.92 earnings per share for the current fiscal year.

Aramark Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Friday, December 5th were paid a $0.12 dividend. The ex-dividend date was Friday, December 5th. This represents a $0.48 dividend on an annualized basis and a yield of 1.3%. This is an increase from Aramark’s previous quarterly dividend of $0.11. Aramark’s payout ratio is currently 39.34%.

Institutional Investors Weigh In On Aramark

Several hedge funds have recently modified their holdings of ARMK. Caitong International Asset Management Co. Ltd bought a new position in Aramark in the third quarter worth about $28,000. Quarry LP acquired a new stake in Aramark during the 3rd quarter worth about $35,000. Osterweis Capital Management Inc. purchased a new position in shares of Aramark during the 2nd quarter valued at about $40,000. Parallel Advisors LLC raised its position in Aramark by 160.7% during the second quarter. Parallel Advisors LLC now owns 1,100 shares of the company’s stock valued at $46,000 after acquiring an additional 678 shares in the last quarter. Finally, Thurston Springer Miller Herd & Titak Inc. boosted its position in Aramark by 241.3% in the 2nd quarter. Thurston Springer Miller Herd & Titak Inc. now owns 1,116 shares of the company’s stock worth $47,000 after purchasing an additional 789 shares in the last quarter.

About Aramark

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.