Aramark (NYSE:ARMK) Hits New 1-Year High – Here’s Why

Aramark (NYSE:ARMK)’s share price reached a new 52-week high on Friday . The company traded as high as $55.17 and last traded at $55.2540, with a volume of 52553 shares traded. The stock had previously closed at $54.78.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on the company. UBS Group raised their price target on Aramark from $48.00 to $56.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. JPMorgan Chase & Co. increased their target price on Aramark from $49.00 to $55.00 and gave the company an “overweight” rating in a research note on Wednesday, May 13th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $54.00 target price on shares of Aramark in a report on Wednesday, May 13th. Royal Bank Of Canada upped their price target on Aramark from $47.00 to $55.00 and gave the stock an “outperform” rating in a report on Thursday, May 14th. Finally, Truist Financial increased their price objective on Aramark from $50.00 to $58.00 and gave the company a “buy” rating in a research report on Wednesday, May 13th. Eleven investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $56.96.

Aramark Price Performance

The company has a quick ratio of 1.07, a current ratio of 1.21 and a debt-to-equity ratio of 1.85. The stock’s 50-day moving average price is $50.39 and its 200 day moving average price is $43.37. The firm has a market cap of $14.70 billion, a price-to-earnings ratio of 41.67, a price-to-earnings-growth ratio of 1.11 and a beta of 1.12.

Aramark (NYSE:ARMK) last released its earnings results on Tuesday, May 12th. The company reported $0.49 earnings per share for the quarter, topping analysts’ consensus estimates of $0.47 by $0.02. Aramark had a return on equity of 17.05% and a net margin of 1.84%.The business had revenue of $4.91 billion for the quarter, compared to the consensus estimate of $4.75 billion. During the same period last year, the business earned $0.35 earnings per share. The firm’s revenue for the quarter was up 14.7% compared to the same quarter last year. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. Equities research analysts predict that Aramark will post 2.24 earnings per share for the current year.

Aramark Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th were issued a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 0.9%. The ex-dividend date of this dividend was Wednesday, May 20th. Aramark’s dividend payout ratio (DPR) is presently 35.82%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. JPMorgan Chase & Co. grew its stake in shares of Aramark by 102.3% during the third quarter. JPMorgan Chase & Co. now owns 1,320,269 shares of the company’s stock valued at $50,700,000 after purchasing an additional 667,528 shares during the last quarter. Artisan Partners Limited Partnership raised its position in Aramark by 166.3% in the 3rd quarter. Artisan Partners Limited Partnership now owns 1,131,501 shares of the company’s stock worth $43,450,000 after purchasing an additional 706,677 shares during the last quarter. Junto Capital Management LP acquired a new position in Aramark during the 3rd quarter worth $132,157,000. Fisher Asset Management LLC boosted its position in Aramark by 73.5% in the 3rd quarter. Fisher Asset Management LLC now owns 1,468,699 shares of the company’s stock valued at $56,398,000 after buying an additional 622,430 shares during the last quarter. Finally, Capital International Investors increased its stake in shares of Aramark by 2.4% in the 3rd quarter. Capital International Investors now owns 24,646,909 shares of the company’s stock valued at $946,455,000 after buying an additional 580,215 shares during the period.

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.