Aramark (NYSE:ARMK) Hits New 12-Month High – Still a Buy?

Aramark (NYSE:ARMK) reached a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $53.66 and last traded at $53.5730, with a volume of 1272815 shares trading hands. The stock had previously closed at $52.28.

Analyst Ratings Changes

A number of brokerages have issued reports on ARMK. Robert W. Baird boosted their target price on shares of Aramark from $50.00 to $58.00 and gave the company an “outperform” rating in a report on Wednesday, May 13th. Royal Bank Of Canada boosted their price objective on Aramark from $47.00 to $55.00 and gave the company an “outperform” rating in a research note on Thursday, May 14th. Bank of America upped their price target on Aramark from $54.00 to $59.00 and gave the company a “buy” rating in a research report on Tuesday, May 19th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Aramark in a report on Friday, March 27th. Finally, Citigroup reaffirmed a “buy” rating on shares of Aramark in a report on Monday, May 18th. Eleven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $54.25.

Aramark Stock Up 2.3%

The company has a current ratio of 1.21, a quick ratio of 1.07 and a debt-to-equity ratio of 1.85. The stock has a market cap of $14.06 billion, a P/E ratio of 39.89, a price-to-earnings-growth ratio of 1.06 and a beta of 1.08. The stock’s fifty day moving average price is $44.97 and its 200 day moving average price is $40.86.

Aramark (NYSE:ARMK) last announced its earnings results on Tuesday, May 12th. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.47 by $0.02. Aramark had a net margin of 1.84% and a return on equity of 17.05%. The company had revenue of $4.91 billion during the quarter, compared to analyst estimates of $4.75 billion. During the same period in the previous year, the business earned $0.35 earnings per share. The firm’s quarterly revenue was up 14.7% compared to the same quarter last year. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. As a group, research analysts forecast that Aramark will post 2.24 earnings per share for the current fiscal year.

Aramark Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 3rd. Stockholders of record on Wednesday, May 20th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date is Wednesday, May 20th. Aramark’s payout ratio is presently 35.82%.

Institutional Trading of Aramark

Several hedge funds have recently added to or reduced their stakes in the business. Activest Wealth Management bought a new position in shares of Aramark during the fourth quarter valued at about $27,000. Caitong International Asset Management Co. Ltd bought a new position in Aramark during the 3rd quarter worth approximately $28,000. Cedar Mountain Advisors LLC purchased a new position in Aramark in the 1st quarter worth approximately $32,000. Kestra Advisory Services LLC bought a new stake in Aramark in the fourth quarter valued at approximately $32,000. Finally, Quarry LP bought a new position in shares of Aramark in the third quarter worth approximately $35,000.

Aramark Company Profile

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.