Aramark [ARMK] moved up 1.22: Why It’s Important

Aramark [NYSE: ARMK] gained 1.22% on the last trading session, reaching $34.72 price per share at the time. The company report on March 9, 2023 that Aramark Announces an Equitable Alliance With Triple B Hospitality Group.

Aramark (NYSE:ARMK), a global leader in food and facilities management, announced today that it has entered into an equitable alliance with Triple B Hospitality Group (Triple B), a Black-owned leader in human-centric hospitality, to bring new avenues of value to Aramark Workplace Experience Group clients who want to empower their people and communities, to overcome labor challenges, and to drive more equitable impact from their businesses.

The alliance will support Aramark’s commitment to building more effective partnerships with women- and minority-owned businesses, bridging gaps in economic impact, and linking talented people to stronger, longer-term workplace opportunities.

Aramark represents 259.45 million in outstanding shares, while the company has a total market value of $8.96 billion with the latest information. ARMK stock price has been found in the range of $34.16 to $34.73.

If compared to the average trading volume of 3.93M shares, ARMK reached a trading volume of 3636821 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 $44.07 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 2.50. 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 1.00, with the Price to Sales ratio for ARMK stock in the period of the last 12 months amounting to 0.53. The Price to Book ratio for the last quarter was 2.87, with the Price to Cash per share for the same quarter was set at 1.18. Price to Free Cash Flow for ARMK in the course of the last twelve months was 149.34 with Quick ratio for the last quarter at 1.10.

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 1.37. With this latest performance, ARMK shares dropped by -6.21% in over the last four-week period, additionally plugging by 6.08% over the last 6 months – not to mention a drop of -6.77% 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 41.61, with the RSI for the last a single of trading hit 47.53, and the three-weeks RSI is set at 39.69 for Aramark [ARMK]. The present Moving Average for the last 50 days of trading for this stock 38.92, while it was recorded at 34.11 for the last single week of trading, and 36.89 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 +3.99 and a Gross Margin at +6.48. Aramark’s Net Margin is presently recorded at +1.19.

Return on Total Capital for ARMK is now 6.09, given the latest momentum, and Return on Invested Capital for the company is 1.84. Return on Equity for this stock inclined to 6.76, with Return on Assets sitting at 1.32. When it comes to the capital structure of this company, Aramark [ARMK] has a Total Debt to Total Equity ratio set at 256.97. Additionally, ARMK Total Debt to Total Capital is recorded at 71.99, with Total Debt to Total Assets ending up at 51.62. Long-Term Debt to Equity for the company is recorded at 252.55, with the Long-Term Debt to Total Capital now at 70.75.

Reflecting on the efficiency of the workforce at the company, Aramark [ARMK] managed to generate an average of $710 per employee. Receivables Turnover for the company is 8.31 with a Total Asset Turnover recorded at a value of 1.11.Aramark’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.10 and a Current Ratio set at 1.30.

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 31.80%.

An analysis of insider ownership at Aramark [ARMK]

There are presently around $9,907 million, in the hands of institutional investors. The top three institutional holders of ARMK stocks are: CAPITAL INTERNATIONAL INVESTORS with ownership of 26,238,987, which is approximately 32.127% of the company’s market cap and around 0.50% of the total institutional ownership; VANGUARD GROUP INC, holding 24,287,684 shares of the stock with an approximate value of $833.07 million in ARMK stocks shares; and NOMURA HOLDINGS INC, currently with $644.36 million in ARMK stock with ownership of nearly 4.488% of the company’s market capitalization.

Positions in Aramark stocks held by institutional investors increased at the end of Tuesday and at the time of the Tuesday reporting period, where 177 institutional holders increased their position in Aramark [NYSE:ARMK] by around 43,654,813 shares. Additionally, 146 investors decreased positions by around 26,305,660 shares, while 44 investors held positions by with 218,868,694 shares. The mentioned changes placed institutional holdings at 288,829,167 shares, according to the latest SEC report filing. ARMK stock had 55 new institutional investments in for a total of 4,391,991 shares, while 37 institutional investors sold positions of 1,559,305 shares during the same period.