Market Analysts see Aramark [ARMK] falling to $36. Time to buy?

Aramark [NYSE: ARMK] stock went on an upward path that rose over 1.24% on Wednesday, amounting to a one-week price decrease of less than -2.25%. The company report on December 5, 2022 that Lynn McKee, Aramark Executive Vice President of Human Resources, Announces Her Retirement; Abigail Charpentier Named Senior Vice President and Chief Human Resources Officer.


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After 42 years of stellar service to Aramark (NYSE: ARMK), Lynn McKee, Executive Vice President for Human Resources, has announced her intention to retire at the end of this calendar year. Abigail Charpentier, currently serving as Senior Vice President of Human Resources and Diversity for the U.S. Food & Facilities business, has been named Senior Vice President and Chief Human Resources Officer, effective January 1, 2023. Charpentier will report to CEO John Zillmer.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20221205005204/en/.

Over the last 12 months, ARMK stock rose by 18.67%. The one-year Aramark stock forecast points to a potential upside of 3.34. The average equity rating for ARMK stock is currently 2.40, trading closer to a bullish pattern in the stock market.

The market cap for the stock reached $10.84 billion, with 258.12 million shares outstanding and 256.55 million shares in the current float. Compared to the average trading volume of 2.25M shares, ARMK stock reached a trading volume of 2709395 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Guru’s Opinion on Aramark [ARMK]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ARMK shares is $43.13 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 0.90, 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 3.55, with the Price to Cash per share for the same quarter was set at 1.27. Price to Free Cash Flow for ARMK in the course of the last twelve months was 56.19 with Quick ratio for the last quarter at 0.80.

ARMK Stock Performance Analysis:

Aramark [ARMK] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -2.25. With this latest performance, ARMK shares gained by 4.22% in over the last four-week period, additionally plugging by 41.42% over the last 6 months – not to mention a rise of 18.67% 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 58.66, with the RSI for the last a single of trading hit 56.39, and the three-weeks RSI is set at 59.56 for Aramark [ARMK]. The present Moving Average for the last 50 days of trading for this stock 38.47, while it was recorded at 41.42 for the last single week of trading, and 35.54 for the last 200 days.

Insight into Aramark Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Aramark [ARMK] shares currently have an operating margin of +3.99 and a Gross Margin at +6.48. Aramark’s Net Margin is presently recorded at +1.19.

Return on Equity for this stock inclined to 6.76, with Return on Assets sitting at 1.32.

Aramark’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.80 and a Current Ratio set at 1.00.

ARMK Stock EPS

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 31.80%.

Aramark [ARMK] Insider Position Details

There are presently around $11,233 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 $827.92 million in ARMK stocks shares; and ROYAL BANK OF CANADA, currently with $752.17 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 151 institutional holders increased their position in Aramark [NYSE:ARMK] by around 25,416,433 shares. Additionally, 150 investors decreased positions by around 25,729,740 shares, while 47 investors held positions by with 218,287,260 shares. The mentioned changes placed institutional holdings at 269,433,433 shares, according to the latest SEC report filing. ARMK stock had 40 new institutional investments in for a total of 8,401,299 shares, while 34 institutional investors sold positions of 2,735,812 shares during the same period.

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