As of Thursday close, Aramark’s (NYSE:ARMK) stock was down -$0.76, moving down -2.00 percent to $37.18. The average number of shares traded per day over the past five days has been 4,090,420 shares. 5 times new highs have been achieved over the past 5 days, with a -$0.02 fall in that time frame. In the last twenty days, the average volume was 5,341,195, while in the previous 50 days, it was 3,630,126.
Since last month, ARMK stock retreated -2.92%. Shares of the company fell to $36.05 on 08/18/23, the lowest level in the past month. A 52-week high of $45.72 was reached on 01/17/23 after having rallying from a 52-week low of $30.72. Since the beginning of this year, ARMK’s stock price has dropped by -10.06% or -$4.16, and marked a new high 9 times. However, the stock has declined by -18.68% since its 52-week high.
ARMK stock investors should be aware that Aramark (ARMK) stock had its last reported insider trading activity 262 days ago on Dec 13. MCKEE LYNN, the EVP, Human Resources of the company, disposed of 30,817 shares for $42.46 on Dec 13. It resulted in a $1,308,490 divestment by the insider. Harrington Lauren A sold 9,452 shares at an average price of $42.48 on Dec 13. The insider now owns 64,106 shares following the transaction.
Valuation Metrics
Right now, Aramark (ARMK) has a P/E ratio of about 17.90. The stock’s beta is 1.63. Besides these, the trailing price-to-sales (P/S) ratio of 0.53, the price-to-book (PB) ratio of 2.73, and the price-to-cash flow ratio of 76.36 may also be considered.
The latest dividend of $0.11 per share was paid out, remained unchanged from last year’s $0.11. On Wednesday November 14 2018, a $0.0050 dividend increase was announced.
Financial Health
In the three months ended June 29, Aramark’s quick ratio stood at 1.10, while its current ratio was 1.30, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 2.12, and the total debt-to-equity ratio was 2.15. On the profitability front, the trailing twelve-month gross margin is 9.40% percent. In the year ended June 29, EBITDA margin amounted to 7.25%, whereas operating margins totaled 4.30%. Based on annual data, ARMK earned $1.56 billion in gross profit and brought in $16.33 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.40%. Return on equity (ROE) for the past 12 months was 16.90%.
In Aramark’s quarter-end financial report for June 29, it reported total debt of $7.54 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. ARMK’s revenue rose 13.09% to $4.6 billion during the quarter, while net income inched up to $4.75 billion. While analysts expected Aramark to report $0.34 quarterly earnings, the actual figure was $0.36 per share, beating the consensus estimate by 5.90%. During the quarter, the company generated $338.9 million in EBITDA. The liabilities of Aramark were 11.85 billion at the end of its most recent quarter ended June 29, and its total debt was $8.02 billion. The value of shareholders’ equity is $261.05 million.
Technical Picture
This quick technical analysis looks at Aramark’s (ARMK) price momentum. With a historical volatility rate of 16.68%, the RSI 9-day stood at 40.55% on 31 August.
With respect to its five-day moving average, the current Aramark price is down by -0.05% percent or -$0.02. At present, ARMK shares trade -2.34% below its 20-day simple moving average and +6.17% percent above its 100-day simple moving average. However, the stock is currently trading approximately -8.08% below its SMA50 and -4.00% below its SMA200.
Stochastic coefficient K was 42.04% and Stochastic coefficient D was 37.14%, while ATR was 0.85. Given the Stochastic reading of 34.14% for the 14-day period, the RSI (14) reading has been calculated as 40.46%. As of today, the MACD Oscillator reading stands at 0.25, while the 14-day reading stands at 0.31.
Analyst Ratings
UBS upgraded its rating on Aramark (NYSE: ARMK) to a Buy in a note to investors on August 22, 2023. The analysts firm previously had a Neutral rating on the stock.Aramark (ARMK) has been rated Overweight by analysts. According to 1 brokerage firm, ARMK is a sell, and 5 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 1 analyst rate Aramark stock as buy, with 7 recommending it as overweight.
With a median target price of $46.00, the current consensus forecast for the stock is $38.00 – $50.00. Based on these forecasts, analysts predict Aramark (ARMK) will achieve an average price target of $45.96.
