For Aramark [ARMK], Analyst sees a drop to $36. What next?

Aramark [NYSE: ARMK] plunged by -$0.05 during the normal trading session on Wednesday and reaching a high of $40.82 during the day while it closed the day at $40.50.

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Aramark stock has also gained 12.69% of its value over the past 7 days. However, ARMK stock has inclined by 6.69% in the 3 months of the year. Over the past six months meanwhile, it has gained 23.66% and gained 9.91% year-on date.

The market cap for ARMK stock reached $10.27 billion, with 257.56 million shares outstanding and 255.51 million shares in the current float. Compared to the average trading volume of 2.09M shares, ARMK reached a trading volume of 3057503 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $40.59 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.

Jefferies have made an estimate for Aramark shares, keeping their opinion on the stock as Hold, with their previous recommendation back on October 25, 2022. While these analysts kept the previous recommendation, Deutsche Bank raised their target price to Hold. The new note on the price target was released on March 30, 2022, representing the official price target for Aramark stock. Previously, the target price had yet another raise to $44, while BofA Securities analysts kept a Buy rating on ARMK stock. On October 21, 2021, analysts increased their price target for ARMK shares from 36 to 40.

The Average True Range (ATR) for Aramark is set at 1.18, with the Price to Sales ratio for ARMK stock in the period of the last 12 months amounting to 0.66. 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 1.73.

ARMK stock trade performance evaluation

Aramark [ARMK] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.69. With this latest performance, ARMK shares gained by 16.11% in over the last four-week period, additionally plugging by 23.66% over the last 6 months – not to mention a rise of 5.91% 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 72.25, with the RSI for the last a single of trading hit 78.42, and the three-weeks RSI is set at 67.59 for Aramark [ARMK]. The present Moving Average for the last 50 days of trading for this stock 35.46, while it was recorded at 39.35 for the last single week of trading, and 34.96 for the last 200 days.

Aramark [ARMK]: An insightful look at the core fundamentals

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 1.00 and a Current Ratio set at 1.20.

Earnings per share (EPS) analysis for Aramark [ARMK] stock

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 32.70%.

Aramark [ARMK]: Insider Ownership positions

There are presently around $10,912 million, in the hands of institutional investors. The top three institutional holders of ARMK stocks are: VANGUARD GROUP INC with ownership of 23,758,699, which is approximately 1.29% of the company’s market cap and around 0.50% of the total institutional ownership; CAPITAL INTERNATIONAL INVESTORS, holding 19,858,864 shares of the stock with an approximate value of $804.28 million in ARMK stocks shares; and ROYAL BANK OF CANADA, currently with $730.7 million in ARMK stock with ownership of nearly -13.212% of the company’s market capitalization.

Positions in Aramark stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 152 institutional holders increased their position in Aramark [NYSE:ARMK] by around 25,423,548 shares. Additionally, 151 investors decreased positions by around 25,738,038 shares, while 46 investors held positions by with 218,272,808 shares. The mentioned changes placed institutional holdings at 269,434,394 shares, according to the latest SEC report filing. ARMK stock had 42 new institutional investments in for a total of 8,408,813 shares, while 35 institutional investors sold positions of 2,736,080 shares during the same period.


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