G&K Services Inc. (GK) Stock Rating Lowered by Barrington Research
G&K Services Inc. (NASDAQ:GK) was downgraded by analysts at Barrington Research from an “outperform” rating to a “market perform” rating in a research note issued on Thursday.
Several other brokerages have also recently commented on GK. Zacks Investment Research upgraded shares of G&K Services from a “sell” rating to a “hold” rating in a report on Monday, July 4th. JPMorgan Chase & Co. cut shares of G&K Services from an “overweight” rating to a “neutral” rating and set a $97.00 target price for the company. in a report on Thursday, August 18th. Finally, Robert W. Baird upgraded shares of G&K Services from a “neutral” rating to an “outperform” rating and set a $111.00 target price for the company in a report on Wednesday, August 17th. Five investment analysts have rated the stock with a hold rating and one has given a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $94.67.
Shares of G&K Services (NASDAQ:GK) opened at 95.20 on Thursday. The firm’s 50-day moving average is $96.57 and its 200 day moving average is $81.12. G&K Services has a 1-year low of $51.94 and a 1-year high of $98.22. The stock has a market capitalization of $1.87 billion, a P/E ratio of 26.37 and a beta of 1.15.
G&K Services (NASDAQ:GK) last announced its earnings results on Tuesday, August 16th. The company reported $1.00 EPS for the quarter, topping the consensus estimate of $0.95 by $0.05. G&K Services had a net margin of 7.38% and a return on equity of 18.89%. The company earned $258.50 million during the quarter, compared to analysts’ expectations of $257.80 million. During the same period last year, the company posted $0.83 earnings per share. The business’s revenue for the quarter was up 9.3% on a year-over-year basis. On average, analysts expect that G&K Services will post $3.89 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which was paid on Friday, September 23rd. Stockholders of record on Thursday, September 8th were given a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.64%. This is a positive change from G&K Services’s previous quarterly dividend of $0.37. The ex-dividend date was Tuesday, September 6th. G&K Services’s dividend payout ratio is 43.21%.
In related news, Director M Lenny Pippin sold 2,400 shares of the firm’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $97.30, for a total transaction of $233,520.00. Following the transaction, the director now owns 22,398 shares of the company’s stock, valued at $2,179,325.40. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Lynn Crump Caine sold 3,100 shares of the firm’s stock in a transaction that occurred on Tuesday, September 13th. The shares were sold at an average price of $96.67, for a total transaction of $299,677.00. Following the transaction, the director now directly owns 9,595 shares in the company, valued at approximately $927,548.65. The disclosure for this sale can be found here. 3.66% of the stock is currently owned by insiders.
A number of institutional investors have recently modified their holdings of the stock. Wellington Management Group LLP raised its position in G&K Services by 4.5% in the first quarter. Wellington Management Group LLP now owns 1,798,623 shares of the company’s stock worth $131,749,000 after buying an additional 77,469 shares in the last quarter. BlackRock Fund Advisors raised its position in G&K Services by 1.7% in the second quarter. BlackRock Fund Advisors now owns 1,268,787 shares of the company’s stock worth $97,151,000 after buying an additional 21,031 shares in the last quarter. JPMorgan Chase & Co. raised its position in G&K Services by 28.5% in the second quarter. JPMorgan Chase & Co. now owns 604,704 shares of the company’s stock worth $46,302,000 after buying an additional 133,951 shares in the last quarter. TimesSquare Capital Management LLC purchased a new position in G&K Services during the second quarter worth approximately $42,640,000. Finally, Silvercrest Asset Management Group LLC raised its position in G&K Services by 12.4% in the second quarter. Silvercrest Asset Management Group LLC now owns 495,072 shares of the company’s stock worth $37,908,000 after buying an additional 54,599 shares in the last quarter. 94.75% of the stock is currently owned by hedge funds and other institutional investors.
About G&K Services
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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