Aramark (NYSE:ARMK) to Issue Quarterly Dividend of $0.10

Aramark (NYSE:ARMK) declared a quarterly dividend on Monday, April 29th, NASDAQ reports. Investors 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 1.19%. The ex-dividend date of this dividend is Friday, May 10th.

Aramark has decreased its dividend payment by an average of 1.2% annually over the last three years. Aramark has a dividend payout ratio of 19.7% meaning its dividend is sufficiently covered by earnings. 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 Trading Up 3.6 %

Shares of NYSE ARMK opened at $31.87 on Thursday. The stock has a market cap of $8.36 billion, a P/E ratio of 13.33, a price-to-earnings-growth ratio of 1.24 and a beta of 1.47. The company has a debt-to-equity ratio of 2.08, a current ratio of 1.27 and a quick ratio of 1.12. Aramark has a 1 year low of $23.95 and a 1 year high of $33.04. The firm has a 50-day moving average of $31.66 and a 200 day moving average of $29.55.

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. The business had revenue of $4.41 billion during the quarter, compared to analyst estimates of $4.29 billion. Aramark had a net margin of 3.37% and a return on equity of 13.45%. Aramark’s revenue was up 12.6% compared to the same quarter last year. During the same period last year, the business earned $0.41 EPS. As a group, sell-side analysts expect that Aramark will post 1.56 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have recently commented on ARMK shares. Royal Bank of Canada reiterated a “sector perform” rating and issued a $33.00 price target on shares of Aramark in a research note on Wednesday, February 7th. The Goldman Sachs Group initiated coverage on shares of Aramark in a research note on Wednesday, January 17th. They issued a “buy” rating and a $33.00 price target for the company. Morgan Stanley raised their price objective on shares of Aramark from $28.00 to $30.00 and gave the stock an “equal weight” rating in a report on Wednesday, February 7th. Truist Financial lifted their price target on shares of Aramark from $35.00 to $37.00 and gave the company a “buy” rating in a report on Wednesday, March 20th. Finally, Robert W. Baird upped their target price on shares of Aramark from $35.00 to $37.00 and gave the stock a “neutral” rating in a research report on Wednesday. One research analyst has rated the stock with a sell rating, four have assigned a hold rating and ten have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $33.32.

Aramark Company Profile

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.