Barclays Reaffirms “Hold” Rating for Aramark (ARMK)

Aramark (NYSE:ARMK)‘s stock had its “hold” rating restated by Barclays in a note issued to investors on Thursday. They presently have a $35.00 price target on the stock. Barclays’ target price indicates a potential upside of 6.81% from the stock’s current price.

Several other equities analysts have also issued reports on ARMK. Royal Bank of Canada reduced their price target on Aramark to $44.00 and set an “outperform” rating on the stock in a research report on Thursday. They noted that the move was a valuation call. Robert W. Baird dropped their price objective on Aramark from $44.00 to $39.00 and set an “outperform” rating for the company in a report on Wednesday. Zacks Investment Research cut Aramark from a “hold” rating to a “sell” rating in a report on Thursday, November 29th. ValuEngine cut Aramark from a “hold” rating to a “sell” rating in a report on Tuesday. Finally, JPMorgan Chase & Co. dropped their price objective on Aramark from $48.00 to $44.00 and set an “overweight” rating for the company in a report on Wednesday. Two research analysts have rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $45.40.

ARMK traded up $0.66 on Thursday, hitting $32.77. 72,702 shares of the company were exchanged, compared to its average volume of 4,317,836. The company has a debt-to-equity ratio of 2.38, a current ratio of 1.17 and a quick ratio of 0.87. Aramark has a 12 month low of $30.78 and a 12 month high of $46.09. The firm has a market cap of $7.69 billion, a price-to-earnings ratio of 16.47, a PEG ratio of 1.12 and a beta of 0.89.

Aramark (NYSE:ARMK) last posted its quarterly earnings results on Tuesday, November 13th. The company reported $0.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.67 by $0.03. Aramark had a return on equity of 17.76% and a net margin of 3.60%. The business had revenue of $3.91 billion for the quarter, compared to analyst estimates of $3.96 billion. During the same period last year, the company earned $0.54 EPS. Aramark’s revenue for the quarter was up 7.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that Aramark will post 2.26 EPS for the current year.

In other news, CEO Eric J. Foss bought 92,564 shares of the stock in a transaction dated Wednesday, December 12th. The stock was bought at an average price of $32.46 per share, for a total transaction of $3,004,627.44. Following the purchase, the chief executive officer now directly owns 1,679,407 shares in the company, valued at approximately $54,513,551.22. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 3.30% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. HPM Partners LLC lifted its stake in shares of Aramark by 14.4% in the 2nd quarter. HPM Partners LLC now owns 10,076 shares of the company’s stock valued at $374,000 after purchasing an additional 1,269 shares during the period. Aristotle Atlantic Partners LLC increased its position in Aramark by 26.7% during the 2nd quarter. Aristotle Atlantic Partners LLC now owns 6,660 shares of the company’s stock valued at $247,000 after buying an additional 1,404 shares in the last quarter. Fuller & Thaler Asset Management Inc. increased its position in Aramark by 49.0% during the 2nd quarter. Fuller & Thaler Asset Management Inc. now owns 5,140 shares of the company’s stock valued at $191,000 after buying an additional 1,690 shares in the last quarter. BB&T Securities LLC increased its position in Aramark by 16.5% during the 2nd quarter. BB&T Securities LLC now owns 12,415 shares of the company’s stock valued at $460,000 after buying an additional 1,754 shares in the last quarter. Finally, Aurora Investment Counsel increased its position in Aramark by 4.7% during the 3rd quarter. Aurora Investment Counsel now owns 41,513 shares of the company’s stock valued at $1,786,000 after buying an additional 1,874 shares in the last quarter. Institutional investors own 99.63% of the company’s stock.

Aramark Company Profile

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. The company operates through three segments: Food and Support Services North America, Food and Support Services International, Uniform and Career Apparel.

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