Market Analysts see Aramark [ARMK] gaining to $38. Time to buy?

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Aramark [NYSE: ARMK] gained 1.99% or 0.76 points to close at $38.92 with a heavy trading volume of 2694912 shares. The company report on April 19, 2022 that Aramark to Host Conference Call on Second Quarter 2022 Results.

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CEO John Zillmer and CFO Tom Ondrof to Lead Call.

Aramark (NYSE:ARMK), a global leader in food, facilities management and uniforms, announced that it will host a conference call to review its second quarter fiscal 2022 results on Tuesday, May 10, 2022 at 8:30 a.m. ET. A news release containing the results will be issued before the call.

It opened the trading session at $39.00, the shares rose to $39.95 and dropped to $38.72, the range by which the price of stock traded the whole day. The daily chart for ARMK points out that the company has recorded 7.90% gains over the past six months. However, it is still -24.66% lower than its most recent low trading price.

If we look at the average trading volume of 1.63M shares, ARMK reached to a volume of 2694912 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Aramark [ARMK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARMK shares is $41.70 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ARMK stock is a recommendation set at 2.40. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Deutsche Bank have made an estimate for Aramark shares, keeping their opinion on the stock as Hold, with their previous recommendation back on March 30, 2022. While these analysts kept the previous recommendation, BofA Securities raised their target price to Buy. The new note on the price target was released on March 11, 2022, representing the official price target for Aramark stock. Previously, the target price had yet another raise from $36 to $40, while Berenberg kept a Buy rating on ARMK stock. On September 17, 2021, analysts decreased their price target for ARMK shares from 35 to 32.

The Average True Range (ATR) for Aramark is set at 0.96, with the Price to Sales ratio for ARMK stock in the period of the last 12 months amounting to 0.74. The Price to Book ratio for the last quarter was 3.58, with the Price to Cash per share for the same quarter was set at 1.63.

Trading performance analysis for ARMK stock

Aramark [ARMK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.19. With this latest performance, ARMK shares gained by 6.19% in over the last four-week period, additionally plugging by 7.90% over the last 6 months – not to mention a drop of -0.59% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ARMK stock in for the last two-week period is set at 64.76, with the RSI for the last a single of trading hit 71.65, and the three-weeks RSI is set at 60.75 for Aramark [ARMK]. The present Moving Average for the last 50 days of trading for this stock 36.61, while it was recorded at 37.64 for the last single week of trading, and 35.60 for the last 200 days.

Aramark [ARMK]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Aramark [ARMK] shares currently have an operating margin of +0.03 and a Gross Margin at +3.05. Aramark’s Net Margin is presently recorded at -0.75.

Return on Total Capital for ARMK is now 0.04, given the latest momentum, and Return on Invested Capital for the company is -0.80. Return on Equity for this stock declined to -3.33, with Return on Assets sitting at -0.60. When it comes to the capital structure of this company, Aramark [ARMK] has a Total Debt to Total Equity ratio set at 287.71. Additionally, ARMK Total Debt to Total Capital is recorded at 74.21, with Total Debt to Total Assets ending up at 54.49. Long-Term Debt to Equity for the company is recorded at 283.08, with the Long-Term Debt to Total Capital now at 73.01.

Receivables Turnover for the company is 7.32 with a Total Asset Turnover recorded at a value of 0.80.Aramark’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.20.

Aramark [ARMK]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ARMK. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Aramark go to -7.70%.

An analysis of insider ownership at Aramark [ARMK]

There are presently around $10,090 million, in the hands of institutional investors. The top three institutional holders of ARMK stocks are: VANGUARD GROUP INC with ownership of 22,903,642, which is approximately 1.375% of the company’s market cap and around 0.50% of the total institutional ownership; ROYAL BANK OF CANADA, holding 21,595,018 shares of the stock with an approximate value of $824.07 million in ARMK stocks shares; and FARALLON CAPITAL MANAGEMENT LLC, currently with $685.45 million in ARMK stock with ownership of nearly -1.939% of the company’s market capitalization.

Positions in Aramark stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 149 institutional holders increased their position in Aramark [NYSE:ARMK] by around 30,262,074 shares. Additionally, 160 investors decreased positions by around 26,088,079 shares, while 38 investors held positions by with 208,050,249 shares. The mentioned changes placed institutional holdings at 264,400,402 shares, according to the latest SEC report filing. ARMK stock had 44 new institutional investments in for a total of 4,961,725 shares, while 40 institutional investors sold positions of 5,866,806 shares during the same period.