Aramark Announces Quarterly Dividend of $0.10 (NYSE:ARMK)

Aramark (NYSE:ARMK) announced a quarterly dividend on Monday, April 29th, NASDAQ reports. Shareholders of record on Monday, May 13th will be paid a dividend of 0.095 per share on Tuesday, May 28th. This represents a $0.38 dividend on an annualized basis and a yield of 1.17%. The ex-dividend date of this dividend is Friday, May 10th.

Aramark has decreased its dividend payment by an average of 1.2% per year over the last three years. Aramark has a payout ratio of 19.7% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Aramark to earn $1.97 per share next year, which means the company should continue to be able to cover its $0.38 annual dividend with an expected future payout ratio of 19.3%.

Aramark Stock Performance

Shares of NYSE:ARMK traded up $0.09 during midday trading on Monday, reaching $32.45. The company had a trading volume of 1,573,254 shares, compared to its average volume of 2,425,989. The stock has a market cap of $8.52 billion, a P/E ratio of 13.54, a P/E/G ratio of 1.30 and a beta of 1.48. Aramark has a 52-week low of $23.95 and a 52-week high of $33.04. The company has a current ratio of 1.27, a quick ratio of 1.12 and a debt-to-equity ratio of 2.08. The company’s 50 day moving average price is $31.56 and its 200 day moving average price is $29.29.

Aramark (NYSE:ARMK) last released its quarterly earnings data on Tuesday, February 6th. The company reported $0.41 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.05. Aramark had a return on equity of 13.45% and a net margin of 3.37%. The firm had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.29 billion. During the same quarter in the prior year, the firm posted $0.41 earnings per share. The business’s quarterly revenue was up 12.6% compared to the same quarter last year. As a group, sell-side analysts anticipate that Aramark will post 1.56 EPS for the current fiscal year.

Analyst Ratings Changes

A number of equities analysts recently commented on the company. Truist Financial increased their price target on Aramark from $35.00 to $37.00 and gave the company a “buy” rating in a research note on Wednesday, March 20th. Morgan Stanley raised their price objective on Aramark from $28.00 to $30.00 and gave the stock an “equal weight” rating in a research report on Wednesday, February 7th. The Goldman Sachs Group initiated coverage on Aramark in a research report on Wednesday, January 17th. They set a “buy” rating and a $33.00 price target for the company. Finally, Royal Bank of Canada reissued a “sector perform” rating and issued a $33.00 price objective on shares of Aramark in a report on Wednesday, February 7th. One investment analyst has rated the stock with a sell rating, three have issued a hold rating and ten have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $33.04.

About Aramark

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.