Aramark (NYSE:ARMK) Hits New 1-Year High Following Better-Than-Expected Earnings

Shares of Aramark (NYSE:ARMK) hit a new 52-week high during mid-day trading on Tuesday following a better than expected earnings announcement. The company traded as high as $60.58 and last traded at $60.28, with a volume of 377983 shares traded. The stock had previously closed at $55.71.

The company reported $0.52 EPS for the quarter, topping the consensus estimate of $0.48 by $0.04. Aramark had a return on equity of 17.05% and a net margin of 1.84%.The business’s quarterly revenue was up 9.3% compared to the same quarter last year. During the same quarter last year, the business earned $0.40 EPS. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS.

Aramark Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 9th. Shareholders of record on Wednesday, August 19th will be given a $0.12 dividend. This represents a $0.48 annualized dividend and a yield of 0.8%. The ex-dividend date is Wednesday, August 19th. Aramark’s dividend payout ratio is currently 35.82%.

Analysts Set New Price Targets

ARMK has been the subject of several recent research reports. Truist Financial lifted their target price on shares of Aramark from $58.00 to $70.00 and gave the company a “buy” rating in a report on Monday, July 27th. The Goldman Sachs Group restated a “buy” rating and set a $51.00 price target on shares of Aramark in a research report on Wednesday, May 13th. UBS Group reaffirmed a “buy” rating and issued a $67.00 price objective on shares of Aramark in a report on Monday, July 13th. Royal Bank Of Canada increased their target price on shares of Aramark from $47.00 to $55.00 and gave the stock an “outperform” rating in a research note on Thursday, May 14th. Finally, Morgan Stanley raised their target price on Aramark from $45.00 to $50.00 and gave the company an “equal weight” rating in a research report on Wednesday, May 13th. Eleven equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $60.62.

Hedge Funds Weigh In On Aramark

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Goldman Sachs Group Inc. boosted its stake in shares of Aramark by 38.2% in the first quarter. Goldman Sachs Group Inc. now owns 489,646 shares of the company’s stock worth $16,903,000 after acquiring an additional 135,224 shares during the last quarter. Creative Planning lifted its holdings in Aramark by 36.0% in the 2nd quarter. Creative Planning now owns 9,918 shares of the company’s stock valued at $415,000 after purchasing an additional 2,625 shares in the last quarter. Cetera Investment Advisers lifted its holdings in Aramark by 7.4% in the 2nd quarter. Cetera Investment Advisers now owns 8,294 shares of the company’s stock valued at $347,000 after purchasing an additional 573 shares in the last quarter. Arrowstreet Capital Limited Partnership acquired a new stake in Aramark during the 2nd quarter worth $640,000. Finally, Cerity Partners LLC grew its holdings in shares of Aramark by 61.5% during the second quarter. Cerity Partners LLC now owns 16,097 shares of the company’s stock worth $674,000 after buying an additional 6,127 shares in the last quarter.

Aramark Price Performance

The stock’s fifty day moving average price is $55.70 and its 200-day moving average price is $47.62. The firm has a market cap of $15.82 billion, a PE ratio of 45.02, a price-to-earnings-growth ratio of 1.06 and a beta of 1.12. The company has a debt-to-equity ratio of 1.85, a current ratio of 1.21 and a quick ratio of 1.07.

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.