Aramark (NYSE:ARMK) Sees Significant Growth in Short Interest


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Aramark (NYSE:ARMK) was the target of a significant increase in short interest during the month of March. As of March 31st, there was short interest totalling 9,840,000 shares, an increase of 31.0% from the March 15th total of 7,510,000 shares. Based on an average trading volume of 2,060,000 shares, the short-interest ratio is presently 4.8 days.

Shares of ARMK opened at $38.31 on Wednesday. The business’s 50 day moving average is $39.67 and its two-hundred day moving average is $35.95. Aramark has a 52-week low of $19.76 and a 52-week high of $43.12. The firm has a market cap of $9.73 billion, a price-to-earnings ratio of -20.93 and a beta of 1.88. The company has a quick ratio of 1.81, a current ratio of 1.99 and a debt-to-equity ratio of 3.35.

Aramark (NYSE:ARMK) last announced its earnings results on Monday, February 8th. The company reported ($0.31) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.41) by $0.10. Aramark had a negative return on equity of 1.48% and a negative net margin of 3.60%. The company had revenue of $2.74 billion for the quarter, compared to analyst estimates of $2.72 billion. During the same period in the prior year, the company posted $0.62 EPS. Aramark’s quarterly revenue was down 35.5% on a year-over-year basis. On average, equities analysts expect that Aramark will post -0.28 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which was paid on Wednesday, March 3rd. Shareholders of record on Wednesday, February 17th were given a $0.11 dividend. This represents a $0.44 dividend on an annualized basis and a dividend yield of 1.15%. The ex-dividend date of this dividend was Tuesday, February 16th. Aramark’s payout ratio is -258.82%.

In other news, SVP Lauren A. Harrington sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, March 11th. The shares were sold at an average price of $41.99, for a total transaction of $419,900.00. Following the transaction, the senior vice president now directly owns 70,171 shares in the company, valued at $2,946,480.29. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Lynn Mckee sold 94,518 shares of the firm’s stock in a transaction that occurred on Tuesday, March 9th. The stock was sold at an average price of $42.00, for a total transaction of $3,969,756.00. Following the transaction, the executive vice president now owns 301,579 shares in the company, valued at $12,666,318. The disclosure for this sale can be found here. Company insiders own 10.30% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the business. Endurance Wealth Management Inc. raised its position in shares of Aramark by 98.2% in the 4th quarter. Endurance Wealth Management Inc. now owns 2,725 shares of the company’s stock valued at $105,000 after purchasing an additional 1,350 shares in the last quarter. Ossiam acquired a new stake in shares of Aramark during the 4th quarter valued at approximately $190,000. The Manufacturers Life Insurance Company acquired a new stake in shares of Aramark during the 4th quarter valued at approximately $200,000. Financial Engines Advisors L.L.C. acquired a new stake in shares of Aramark during the 4th quarter valued at approximately $209,000. Finally, Allstate Corp acquired a new stake in shares of Aramark during the 4th quarter valued at approximately $211,000. 93.50% of the stock is currently owned by institutional investors.

A number of equities analysts recently weighed in on ARMK shares. JPMorgan Chase & Co. reiterated a “buy” rating and issued a $40.00 price objective on shares of Aramark in a research report on Sunday, March 14th. Morgan Stanley upped their price objective on shares of Aramark from $34.00 to $37.00 and gave the company an “equal weight” rating in a research note on Monday. TheStreet raised shares of Aramark from a “d+” rating to a “c-” rating in a research note on Wednesday, March 10th. Finally, Zacks Investment Research upgraded Aramark from a “hold” rating to a “buy” rating and set a $44.00 target price for the company in a report on Monday. Nine analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average target price of $33.14.

About Aramark

Aramark engages in the provision of food, facilities, and uniform services. It operates through the following segments: Food and Support Services United States (FSS United States); Food and Support Services International (FSS International); and Uniform. The FSS United States segment offers food, hospitality and facility services for school districts, colleges and universities, healthcare facilities, businesses, sports, entertainment and recreational venues, conference and convention centers, national and state parks, and correctional institutions.

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