Royal Bank of Canada Upgrades Aramark (NYSE:ARMK) to Outperform

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

Several other research analysts also recently issued reports on ARMK. Robert W. Baird upped their price objective on Aramark from $37.00 to $38.00 and gave the stock a “neutral” rating in a report on Wednesday, August 7th. Bank of America boosted their price target on shares of Aramark from $36.00 to $39.00 and gave the company a “buy” rating in a report on Wednesday, August 7th. StockNews.com downgraded shares of Aramark from a “hold” rating to a “sell” rating in a report on Friday. UBS Group upped their price objective on Aramark from $35.00 to $40.00 and gave the stock a “buy” rating in a research report on Friday, June 21st. Finally, JPMorgan Chase & Co. raised their target price on shares of Aramark from $39.00 to $41.00 and gave the company an “overweight” rating in a research report on Monday, September 9th. One equities research analyst has rated the stock with a sell rating, two have assigned a hold rating and eleven have given a buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $37.36.

Aramark Price Performance

NYSE:ARMK opened at $38.27 on Tuesday. The company has a fifty day moving average price of $34.99 and a 200 day moving average price of $33.25. The stock has a market cap 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 debt-to-equity ratio of 1.71, a current ratio of 0.96 and a quick ratio of 0.86. Aramark has a one year low of $23.95 and a one year high of $38.57.

Aramark (NYSE:ARMK) last released its quarterly earnings data on Tuesday, August 6th. The company reported $0.31 earnings per share for the quarter, beating analysts’ consensus estimates of $0.30 by $0.01. Aramark had a return on equity of 14.09% and a net margin of 1.93%. The company had revenue of $4.38 billion for the quarter, compared to the consensus estimate of $4.31 billion. During the same period in the previous year, the business earned $0.36 earnings per share. The company’s quarterly revenue was up 8.0% on a year-over-year basis. Analysts anticipate that Aramark will post 1.57 earnings per share for the current year.

Hedge Funds Weigh In On Aramark

Large investors have recently modified their holdings of the business. Souders Financial Advisors increased its stake in Aramark by 2.9% in the 2nd quarter. Souders Financial Advisors now owns 105,732 shares of the company’s stock worth $3,597,000 after acquiring an additional 2,949 shares during the last quarter. Truist Financial Corp lifted its stake in Aramark by 20.1% in the second quarter. Truist Financial Corp now owns 8,961 shares of the company’s stock worth $305,000 after purchasing an additional 1,497 shares during the last quarter. Algert Global LLC purchased a new position in Aramark in the 2nd quarter worth approximately $854,000. Susquehanna International Group Ltd. bought a new stake in Aramark during the 2nd quarter valued at $319,000. Finally, Millennium Management LLC grew its stake in shares of Aramark by 822.3% in the second quarter. Millennium Management LLC now owns 1,677,629 shares of the company’s stock worth $57,073,000 after purchasing an additional 1,495,737 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.