Aramark (ARMK) Shares Gap Down on Analyst Downgrade
Aramark (NYSE:ARMK)’s share price gapped down prior to trading on Wednesday after Nomura lowered their price target on the stock from $47.00 to $45.00. The stock had previously closed at $44.91, but opened at $42.85. Nomura currently has a buy rating on the stock. Aramark shares last traded at $40.02, with a volume of 5946500 shares trading hands.
Several other equities research analysts have also commented on ARMK. Zacks Investment Research lowered shares of Aramark from a “hold” rating to a “strong sell” rating in a research note on Wednesday, October 18th. BidaskClub lowered shares of Aramark from a “hold” rating to a “sell” rating in a research note on Friday, July 28th. Royal Bank Of Canada reiterated a “buy” rating on shares of Aramark in a research note on Thursday, October 5th. Barclays PLC reiterated a “hold” rating and issued a $45.00 price objective on shares of Aramark in a research note on Thursday, October 19th. Finally, Morgan Stanley increased their price objective on shares of Aramark from $39.00 to $40.00 and gave the company an “equal weight” rating in a research note on Thursday, August 10th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and a consensus price target of $44.83.
Several hedge funds have recently modified their holdings of ARMK. Janus Henderson Group PLC increased its stake in shares of Aramark by 13,882.8% during the 2nd quarter. Janus Henderson Group PLC now owns 2,833,624 shares of the company’s stock worth $116,122,000 after purchasing an additional 2,813,359 shares during the last quarter. Atlanta Capital Management Co. L L C increased its stake in shares of Aramark by 25.2% during the 2nd quarter. Atlanta Capital Management Co. L L C now owns 9,931,393 shares of the company’s stock worth $406,989,000 after purchasing an additional 1,997,607 shares during the last quarter. Legal & General Group Plc increased its stake in shares of Aramark by 197.8% during the 3rd quarter. Legal & General Group Plc now owns 1,128,918 shares of the company’s stock worth $45,843,000 after purchasing an additional 749,812 shares during the last quarter. Principal Financial Group Inc. increased its stake in shares of Aramark by 1,987.5% during the 2nd quarter. Principal Financial Group Inc. now owns 737,730 shares of the company’s stock worth $30,232,000 after purchasing an additional 702,390 shares during the last quarter. Finally, Lord Abbett & CO. LLC increased its stake in shares of Aramark by 58.8% during the 2nd quarter. Lord Abbett & CO. LLC now owns 1,804,100 shares of the company’s stock worth $73,932,000 after purchasing an additional 668,047 shares during the last quarter. Institutional investors own 93.75% of the company’s stock.
The company has a debt-to-equity ratio of 2.34, a current ratio of 1.30 and a quick ratio of 1.00. The stock has a market cap of $9,900.00, a P/E ratio of 22.61, a PEG ratio of 1.66 and a beta of 0.50.
Aramark (NYSE:ARMK) last issued its quarterly earnings results on Tuesday, November 14th. The company reported $0.54 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.52 by $0.02. Aramark had a net margin of 2.56% and a return on equity of 19.69%. The company had revenue of $3.65 billion during the quarter, compared to analyst estimates of $3.70 billion. During the same quarter last year, the business posted $0.49 EPS. Aramark’s quarterly revenue was up 3.1% compared to the same quarter last year. research analysts predict that Aramark will post 2.01 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 7th. Stockholders of record on Monday, November 27th will be paid a dividend of $0.105 per share. The ex-dividend date is Friday, November 24th. This represents a $0.42 annualized dividend and a dividend yield of 1.03%. This is a positive change from Aramark’s previous quarterly dividend of $0.10. Aramark’s dividend payout ratio (DPR) is presently 27.70%.
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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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