Aramark (NYSE:ARMK) Raised to “Outperform” at Royal Bank of Canada

Aramark (NYSE:ARMK) was upgraded by research analysts at Royal Bank of Canada from a “sector perform” rating to an “outperform” rating in a note issued to investors on Tuesday, Briefing.com reports. The brokerage currently has a $42.50 target price on the stock, up from their prior target price of $36.00. Royal Bank of Canada’s target price suggests a potential upside of 11.05% from the company’s current price.

Several other research analysts also recently weighed in on the company. JPMorgan Chase & Co. boosted their target price on Aramark from $39.00 to $41.00 and gave the stock an “overweight” rating in a research note on Monday, September 9th. UBS Group upped their target price on Aramark from $35.00 to $40.00 and gave the stock a “buy” rating in a research note on Friday, June 21st. Oppenheimer boosted their price objective on Aramark from $36.00 to $39.00 and gave the stock an “outperform” rating in a research note on Wednesday, June 12th. Truist Financial increased their target price on shares of Aramark from $37.00 to $42.00 and gave the company a “buy” rating in a research report on Thursday, September 12th. Finally, Deutsche Bank Aktiengesellschaft upgraded Aramark from a “hold” rating to a “buy” rating and lifted their price objective for the stock from $36.00 to $39.00 in a research report on Wednesday, August 7th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and eleven have issued a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $37.36.

Aramark Stock Performance

Shares of NYSE:ARMK opened at $38.27 on Tuesday. The firm has a fifty day simple moving average of $34.99 and a two-hundred day simple moving average of $33.25. Aramark has a 52 week low of $23.95 and a 52 week high of $38.57. The stock has a market capitalization of $10.06 billion, a P/E ratio of 16.08, a PEG ratio of 2.04 and a beta of 1.62. The company has a quick ratio of 0.86, a current ratio of 0.96 and a debt-to-equity ratio of 1.71.

Aramark (NYSE:ARMK) last posted its quarterly earnings results on Tuesday, August 6th. The company reported $0.31 EPS for the quarter, topping analysts’ consensus estimates of $0.30 by $0.01. Aramark had a net margin of 1.93% and a return on equity of 14.09%. The firm had revenue of $4.38 billion for the quarter, compared to analysts’ expectations of $4.31 billion. During the same period in the prior year, the business posted $0.36 earnings per share. The business’s revenue for the quarter was up 8.0% on a year-over-year basis. On average, analysts expect that Aramark will post 1.57 earnings per share for the current fiscal year.

Institutional Trading of Aramark

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Rise Advisors LLC acquired a new stake in shares of Aramark in the first quarter valued at approximately $25,000. Scarborough Advisors LLC acquired a new position in Aramark in the 4th quarter worth approximately $34,000. Twin Tree Management LP grew its holdings in shares of Aramark by 32.0% during the first quarter. Twin Tree Management LP now owns 1,424 shares of the company’s stock valued at $46,000 after buying an additional 345 shares in the last quarter. GAMMA Investing LLC grew its stake in Aramark by 319.3% during the 2nd quarter. GAMMA Investing LLC now owns 1,677 shares of the company’s stock valued at $57,000 after acquiring an additional 1,277 shares in the last quarter. Finally, Versant Capital Management Inc grew its position in Aramark by 44,750.0% during the second quarter. Versant Capital Management Inc now owns 1,794 shares of the company’s stock valued at $61,000 after purchasing an additional 1,790 shares in the last quarter.

About Aramark

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.