Aramark (NYSE:ARMK) Sees Significant Decline in Short Interest

Aramark (NYSE:ARMK) saw a large decline in short interest during the month of January. As of January 15th, there was short interest totalling 5,150,000 shares, a decline of 21.6% from the December 31st total of 6,570,000 shares. Based on an average daily volume of 1,890,000 shares, the short-interest ratio is presently 2.7 days.

Aramark Price Performance

ARMK traded down $0.76 on Friday, hitting $38.87. 1,679,685 shares of the stock were exchanged, compared to its average volume of 1,606,525. The company has a debt-to-equity ratio of 1.42, a current ratio of 0.81 and a quick ratio of 0.72. Aramark has a 12 month low of $28.51 and a 12 month high of $42.49. The firm has a market capitalization of $10.30 billion, a price-to-earnings ratio of 39.26 and a beta of 1.64. The business has a 50-day moving average of $38.88 and a two-hundred day moving average of $37.60.

Aramark (NYSE:ARMK) last issued its earnings results on Monday, November 11th. The company reported $0.54 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.54. Aramark had a return on equity of 14.06% and a net margin of 1.51%. The firm had revenue of $4.42 billion for the quarter, compared to the consensus estimate of $4.46 billion. During the same quarter last year, the business posted $0.64 EPS. The company’s revenue was up 5.2% compared to the same quarter last year. Sell-side analysts forecast that Aramark will post 1.93 EPS for the current fiscal year.

Aramark Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, February 24th. Stockholders of record on Monday, February 10th will be issued a $0.105 dividend. The ex-dividend date is Monday, February 10th. This represents a $0.42 dividend on an annualized basis and a dividend yield of 1.08%. This is a boost from Aramark’s previous quarterly dividend of $0.00. Aramark’s dividend payout ratio is 42.42%.

Wall Street Analyst Weigh In

ARMK has been the subject of several research analyst reports. UBS Group lifted their target price on Aramark from $40.00 to $44.00 and gave the stock a “buy” rating in a research note on Tuesday, October 8th. Morgan Stanley increased their price objective on shares of Aramark from $40.00 to $43.00 and gave the company an “equal weight” rating in a research report on Thursday, December 12th. Truist Financial lifted their target price on shares of Aramark from $42.00 to $46.00 and gave the stock a “buy” rating in a report on Tuesday, November 12th. The Goldman Sachs Group upped their price target on shares of Aramark from $38.00 to $41.00 and gave the company a “buy” rating in a research note on Wednesday, October 16th. Finally, Robert W. Baird raised their price objective on shares of Aramark from $44.00 to $45.00 and gave the stock a “neutral” rating in a research report on Thursday, December 12th. Three analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $42.59.

Institutional Investors Weigh In On Aramark

Several hedge funds and other institutional investors have recently made changes to their positions in ARMK. Huntington National Bank grew its holdings in shares of Aramark by 100.3% during the third quarter. Huntington National Bank now owns 681 shares of the company’s stock worth $26,000 after purchasing an additional 341 shares during the last quarter. Capital Performance Advisors LLP acquired a new position in Aramark in the 3rd quarter valued at approximately $28,000. UMB Bank n.a. raised its stake in shares of Aramark by 360.1% during the third quarter. UMB Bank n.a. now owns 773 shares of the company’s stock valued at $30,000 after acquiring an additional 605 shares during the last quarter. Friedenthal Financial acquired a new position in shares of Aramark during the third quarter worth $52,000. Finally, Global Retirement Partners LLC grew its stake in shares of Aramark by 167.2% in the fourth quarter. Global Retirement Partners LLC now owns 1,424 shares of the company’s stock worth $53,000 after purchasing an additional 891 shares during 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.