Aramark (NYSE:ARMK) saw a downside of -0.52% to close Monday at $36.51 after subtracting -$0.19 on the day. The 5-day average trading volume is 4,931,720 shares of the company’s common stock. It has gained $38.20 in the past week and touched a new high 1 time within the past 5 days. An average of 4,800,620 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 3,526,282.
ARMK’s 1-month performance is -14.46% or -$6.17 on its low of $36.05 reached on 08/18/23. The company’s shares have touched a 52-week low of $30.72 and high of $45.72, with the stock’s rally to the 52-week high happening on 01/17/23. YTD, ARMK has lost -11.68% or -$4.83 and has reached a new high 9 times. However, the current price is down -20.14% from the 52-week high price.
Insider Transactions
ARMK stock investors last saw insider trading activity on Dec 13.MCKEE LYNN (EVP, Human Resources) most recently sold 30,817 shares at $42.46 per share on Dec 13. This transaction cost the insider $1,308,490. SVP and General Counsel, Harrington Lauren A, sold 9,452 shares at a price of $42.48 on Dec 13.
Valuation Metrics
ARMK stock has a beta of 1.63. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.52 while the price-to-book (PB) in the most recent quarter is 2.68, with the price to cash flow ratio at 74.66.
Aramark’s quick ratio for the period ended June 29 was 1.10, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending June 29 was 2.12, while the total debt to equity was 2.15. In terms of profitability, the gross margin trailing 12 months is 9.40%. The trailing 12-month EBITDA margin is 7.25% while for the period ending June 29, Aramark’s operating margin was 4.30%. The firm’s gross profit as reported stood at $1.56 billion against revenue of $16.33 billion.
Earnings Surprise
For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 88.08% to $338.48 million, while revenue of $56.04 million was 83.44% off the previous quarter. Analysts expected ARMK to announce $0.34 per share in earnings in its latest quarter, but it posted $0.36, representing a 5.90% surprise. EBITDA for the quarter stood at more than $338.9 million. ARMK stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 11.85 billion, with total debt at $8.02 billion. Shareholders hold equity totaling $261.05 million.
Let’s look briefly at Aramark (ARMK) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 21 August was 29.42% to suggest the stock is trending oversold, with historical volatility in this time period at 25.41%.
The stock’s 5-day moving average is $36.85, reflecting a -4.25% or -$1.62 change from its current price. ARMK is currently trading -14.44% above its 20-day SMA, +5.16% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -10.29% and SMA200 by+0.47%.
Stochastic %K and %D was 7.59% and 5.05% and the average true range (ATR) pointed at 1.01. The RSI (14) points at 33.11%, while the 14-day stochastic is at 8.10% with the period’s ATR at 0.99. The stock’s 9-day MACD Oscillator is pointing at -1.49 and -1.70 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Aramark (NYSE: ARMK), Bernstein upgraded it to an Outperform rating. They previously had a Mkt perform rating on the stock. Analysts offering their rating for ARMK stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate ARMK as a “sell,”, while 6 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 1 rates the stock as overweight while 6 have offered a “buy” rating.
What is ARMK’s price target for the next 12 months?
Analysts have a consensus price target ranging from a low of $38.00 and a high of $50.00, with their median price target at $46.00. Looking at these predictions, the average price target given by analysts is for Aramark (ARMK) stock is $45.96.
