The stock of Aramark (NYSE:ARMK) increased by $0.4 on Monday to finish at $37.66, up 1.07 percent. The last five days have seen an average of 4,034,880 shares of common stock traded. 9 times new highs were reached in the current year, with a fall of -$3.68. The average number of shares traded over the last 20 days was 5,295,895, while the average volume over the last 50 days totaled 3,590,486.
ARMK stock dropped -6.57% since last month. On 08/18/23, the company’s shares reached a one-month low of $36.05. The stock touched a high of $45.72 on 01/17/23, after rallying from a low of $30.72 in 52 weeks. The price of ARMK stock has declined by -8.90% or -$3.68 this year, reaching a new high 9 times. Still, the stock price is down -17.63% from the 52-week high.
Insider Transactions
ARMK stock investors should be aware that Aramark (ARMK) stock had its last reported insider trading activity 259 days ago on Dec 13. On Dec 13, EVP, Human Resources MCKEE LYNN sold 30,817 shares at $42.46 each. This transaction resulted in the insider making $1,308,490. On Dec 13, Harrington Lauren A sold 9,452 shares at a price of US$42.48. After the transaction, the insider now owns 64,106 shares.
Valuation Metrics
Aramark (ARMK) has a trailing price-to-earnings (P/E) ratio of 18.13. Beta for the stock is 1.63. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 0.54, the price-to-book (PB) ratio of 2.77, and the price-to-cash flow ratio of 77.35.
Company paid $0.11 per share in dividends, remained unchanged from $0.11 last year. A $0.0050 dividend increase was reported on Wednesday November 14 2018.
Financial Health
For the three months ended June 29, Aramark’s quick ratio was 1.10, while its current ratio was 1.30, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending June 29 is 2.12, and the total debt to equity ratio is 2.15. As far as profitability goes, gross margin for the trailing twelve months is 9.40% percent. Aramark’s EBITDA margin for the year ended June 29 was 7.25%, whereas its operating margin stood at 4.30% for the same period. Based on annual data, it had gross profit of $1.56 billion and revenue of $16.33 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. ARMK’s return on assets (ROA) during the last 12 months has been 3.60%. There was a 5.40% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 16.90%.
Earnings Surprise
According to Aramark’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.75 billion, while revenues rose by 13.09% to $4.6 billion. It was predicted that Aramark’s quarterly earnings would be $0.36, but it ended up being $0.34, beating the consensus by 5.90%. EBITDA was $338.9 million for the quarter. At the end of Aramark’s most recent quarter ended June 29, its liabilities totaled 11.85 billion, while its total debt was $8.02 billion. Equity owned by shareholders amounts to $261.05 million.
Technical Picture
Here’s a quick look at Aramark’s (ARMK) price momentum from a technical perspective. As of 28 August, the RSI 9-day stood at 45.47%, suggesting the stock is Neutral, with a 16.52% historical volatility rate.
The stochastic %K and %D were 23.30% and 22.14% respectively, while the average true range (ATR) was 0.89. Based on the 14-day stochastic reading of 28.35%, the RSI (14) reading is 42.89%. On the 9-day MACD Oscillator, the stock is at 0.33, and the 14-day reading is at -0.42.
Analyst Ratings
In its most recent analyst report, UBS raised its rating on Aramark (NYSE: ARMK) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Aramark (ARMK) an Overweight rating. ARMK is a stock that is recommended for selling by 1 brokerage firm, while 5 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 1 rate it overweight and 7 others recommend it as a buy.
What is ARMK’s price target for the next 12 months?
The current consensus forecast for the stock is between $38.00 and $50.00, with a median target price of $46.00. In analyzing these forecasts, the average price target given by analysts for Aramark (ARMK) is $45.96.
