Aramark (NYSE:ARMK) Earns Buy Rating from Analysts at Bank of America

Bank of America began coverage on shares of Aramark (NYSE:ARMK) in a research report sent to investors on Tuesday. The brokerage issued a buy rating and a $50.00 target price on the stock.

Several other equities analysts also recently issued reports on the company. Stifel Nicolaus boosted their price objective on Aramark from $44.00 to $47.00 and gave the stock a “buy” rating in a research report on Wednesday, February 11th. Citigroup increased their price target on Aramark from $49.00 to $51.00 and gave the stock a “buy” rating in a research note on Thursday, February 12th. Weiss Ratings restated a “hold (c)” rating on shares of Aramark in a research note on Monday, December 29th. Robert W. Baird set a $50.00 target price on shares of Aramark in a research report on Wednesday, February 11th. Finally, UBS Group set a $47.00 target price on shares of Aramark and gave the company a “buy” rating in a research note on Wednesday, February 11th. Seven research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $48.38.

Aramark Stock Up 0.8%

Aramark stock opened at $40.50 on Tuesday. The company has a 50-day simple moving average of $38.55 and a 200-day simple moving average of $38.55. The firm has a market capitalization of $10.65 billion, a P/E ratio of 34.03, a P/E/G ratio of 0.98 and a beta of 1.09. The company has a debt-to-equity ratio of 1.94, a quick ratio of 1.13 and a current ratio of 1.27. Aramark has a one year low of $29.92 and a one year high of $44.49.

Aramark (NYSE:ARMK) last issued its quarterly earnings data on Tuesday, February 10th. The company reported $0.51 earnings per share for the quarter, beating the consensus estimate of $0.50 by $0.01. Aramark had a net margin of 1.69% and a return on equity of 16.15%. The firm had revenue of $4.83 billion for the quarter, compared to the consensus estimate of $4.76 billion. During the same period last year, the firm posted $0.51 EPS. Aramark’s quarterly revenue was up 6.1% compared to the same quarter last year. Aramark has set its FY 2026 guidance at 2.180-2.280 EPS. As a group, equities analysts expect that Aramark will post 1.92 earnings per share for the current year.

Aramark Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 4th. Stockholders of record on Wednesday, February 18th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Wednesday, February 18th. This represents a $0.48 annualized dividend and a dividend yield of 1.2%. Aramark’s dividend payout ratio (DPR) is currently 40.34%.

Institutional Investors Weigh In On Aramark

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Activest Wealth Management acquired a new position in shares of Aramark in the 4th quarter valued at $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Aramark in the third quarter worth approximately $28,000. Kestra Advisory Services LLC acquired a new stake in shares of Aramark during the fourth quarter valued at approximately $32,000. Quarry LP purchased a new stake in shares of Aramark in the 3rd quarter valued at approximately $35,000. Finally, Osterweis Capital Management Inc. acquired a new position in Aramark in the 2nd quarter worth approximately $40,000.

Aramark Company Profile

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.