G&K Services Inc. (GK) Rating Increased to Hold at Zacks Investment Research
G&K Services Inc. (NASDAQ:GK) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “G&K Services, Inc. is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. G&K operates over processing facilities and branch offices. “
Several other equities research analysts also recently weighed in on the company. Robert W. Baird raised G&K Services from a “neutral” rating to an “outperform” rating and set a $111.00 price target on the stock in a research report on Wednesday, August 17th. Sidoti lowered shares of G&K Services from a “buy” rating to a “neutral” rating in a research note on Monday, June 6th. Finally, JPMorgan Chase & Co. lowered shares of G&K Services from an “overweight” rating to a “neutral” rating and set a $97.00 target price on the stock. in a research note on Thursday, August 18th. Four analysts have rated the stock with a hold rating and one has given a buy rating to the company’s stock. G&K Services presently has an average rating of “Hold” and a consensus target price of $94.67.
Shares of G&K Services (NASDAQ:GK) opened at 96.46 on Monday. The company has a market capitalization of $1.90 billion, a PE ratio of 26.72 and a beta of 1.17. The stock has a 50 day moving average price of $92.31 and a 200 day moving average price of $78.89. G&K Services has a one year low of $51.94 and a one year high of $98.22.
G&K Services (NASDAQ:GK) last released its earnings results on Tuesday, August 16th. The company reported $1.00 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.05. G&K Services had a return on equity of 18.89% and a net margin of 7.38%. The firm had revenue of $258.50 million for the quarter, compared to the consensus estimate of $257.80 million. During the same period in the prior year, the firm earned $0.83 EPS. The firm’s revenue was up 9.3% on a year-over-year basis. On average, equities research analysts predict that G&K Services will post $3.89 earnings per share for the current year.
The company also recently announced a quarterly dividend, which will be paid on Friday, September 23rd. Stockholders of record on Thursday, September 8th will be paid a dividend of $0.39 per share. This is a positive change from G&K Services’s previous quarterly dividend of $0.37. This represents a $1.56 annualized dividend and a dividend yield of 1.62%. The ex-dividend date of this dividend is Tuesday, September 6th. G&K Services’s dividend payout ratio is presently 43.21%.
In other G&K Services news, VP Jeffrey Louis Cotter sold 477 shares of the firm’s stock in a transaction that occurred on Thursday, September 1st. The shares were sold at an average price of $96.99, for a total value of $46,264.23. Following the transaction, the vice president now directly owns 26,881 shares of the company’s stock, valued at approximately $2,607,188.19. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Lynn Crump Caine sold 3,100 shares of the firm’s stock in a transaction that occurred on Tuesday, September 13th. The stock was sold at an average price of $96.67, for a total transaction of $299,677.00. Following the completion of the transaction, the director now directly owns 9,595 shares in the company, valued at $927,548.65. The disclosure for this sale can be found here. Insiders own 3.66% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio raised its position in G&K Services by 7.6% in the second quarter. Public Employees Retirement System of Ohio now owns 1,334 shares of the company’s stock worth $102,000 after buying an additional 94 shares during the period. BlackRock Inc. raised its position in G&K Services by 29.7% in the first quarter. BlackRock Inc. now owns 1,507 shares of the company’s stock worth $111,000 after buying an additional 345 shares during the period. Advisor Group Inc. acquired a new position in G&K Services during the second quarter worth $116,000. PineBridge Investments L.P. raised its position in G&K Services by 3.0% in the second quarter. PineBridge Investments L.P. now owns 2,506 shares of the company’s stock worth $192,000 after buying an additional 74 shares during the period. Finally, Teacher Retirement System of Texas raised its position in G&K Services by 14.2% in the second quarter. Teacher Retirement System of Texas now owns 2,797 shares of the company’s stock worth $214,000 after buying an additional 347 shares during the period. 94.75% of the stock is currently owned by institutional investors and hedge funds.
G&K Services Company Profile
G&K Services, Inc is a service-focused market leader of branded uniform and facility services programs. The Company’s facility products and services include floor mats, towels, mops and restroom hygiene products. The Company serves customers in industries including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, pharmaceutical, retail, restaurants, hospitality, government, healthcare and others.
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