why Aramark [ARMK] is a Good Choice for Investors After New Price Target of $34.27

Aramark [NYSE: ARMK] loss -0.98% on the last trading session, reaching $32.21 price per share at the time. The company report on March 27, 2024 at 9:00 AM that Aramark Completes Debt Repricing.

Proactively reduced pricing on Term Loans due 2028 and 2030 by 50 basis points.

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Aramark (NYSE: ARMK), a global leader in food and facilities management, announced today the successful completion of a favorable repricing of the Company’s 2028 Term Loan B of $730 million and 2030 Term Loan B of $1.1 billion. The new applicable rate for both Term Loans will be Secured Overnight Financing Rate (“SOFR”) plus 200 basis points, which reduces pricing by 50 basis points. Aramark’s proactive action is expected to result in an interest expense savings of approximately $10 million annually. There is no change to the Company’s outstanding debt, maturities, or covenants from the repricing.

If compared to the average trading volume of 2.50M shares, ARMK reached a trading volume of 2145593 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 $34.27 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 1.53. 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.

Goldman have made an estimate for Aramark shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 17, 2024. While these analysts kept the previous recommendation, Truist raised their target price to Buy. The new note on the price target was released on January 08, 2024, representing the official price target for Aramark stock. Previously, the target price had yet another drop from $44 to $29, while Jefferies kept a Buy rating on ARMK stock. On September 01, 2023, analysts increased their price target for ARMK shares from 45 to 47.

The Average True Range (ATR) for Aramark is set at 0.74, with the Price to Sales ratio for ARMK stock in the period of the last 12 months amounting to 0.45. The Price to Book ratio for the last quarter was 2.97, with the Price to Cash per share for the same quarter was set at 1.55. Price to Free Cash Flow for ARMK in the course of the last twelve months was 34.92 with Quick ratio for the last quarter at 1.12.

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 0.78. With this latest performance, ARMK shares gained by 1.74% in over the last four-week period, additionally plugging by 30.93% over the last 6 months – not to mention a rise of 27.99% 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 56.19, with the RSI for the last a single of trading hit 55.57, and the three-weeks RSI is set at 56.76 for Aramark [ARMK]. The present Moving Average for the last 50 days of trading for this stock 30.98, while it was recorded at 32.15 for the last single week of trading, and 28.58 for the last 200 days.

Aramark [ARMK]: A deeper dive into fundamental analysis

Aramark’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.12 and a Current Ratio set at 1.27.

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

With the latest financial reports released by the company, Aramark posted 0.28/share EPS, while the average EPS was predicted by analysts to be reported at 0.26/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 7.70%. 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 19.79%.

An analysis of Institutional ownership at Aramark [ARMK]

The top three institutional holders of ARMK stocks are: VANGUARD GROUP INC with ownership of 1.32 billion shares, which is approximately 8.4983%. BLACKROCK INC., holding 1.04 billion shares of the stock with an approximate value of $200.69 billion in ARMK stocks shares; and BERKSHIRE HATHAWAY INC, currently with $174.35 billion in ARMK stock with ownership which is approximately 5.8386%.