Why Aramark (ARMK) Stock Could See Much Higher Prices Ahead

Aramark (NYSE: ARMK) is -50.14% lower on its value in year-to-date trading and has touched a low of $9.65 and a high of $47.22 in the current 52-week trading range. The ARMK stock was last observed hovering at around $21.64 in the recent trading session, with the current gains setting it 0.31% off its average median price target of $30.00 for the next 12 months. It is also 47.74% off the consensus price target high of $42.00 offered by 13 analysts, but current levels are -9.75% lower than the price target low of $20.00 for the same period.

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At last check, trading at $21.95, the stock is -3.92% and -11.29% below its SMA20 and SMA50 respectively. However, with a current trading volume of 0.19 million and changing 1.43% at the moment leaves the stock -36.17% off its SMA200. ARMK registered -40.63% loss for a year compared to 6-month loss of -51.80%. The firm has a 50-day simple moving average (SMA 50) of $24.81 and a 200-day simple moving average (SMA200) of $30.12.

The stock witnessed a -10.98% gain in the last 1 month and extending the period to 3 months gives it a -3.13%, and is -3.26% down over the last 5 days. If we measure the stock’s price variations over the week and the month, we find that the volatility rates stand at 5.45% over the week and 6.08% over the month.

Aramark (ARMK) has around 183300 employees, a market worth around $5.25B and $15.95B in sales. Current P/E ratio is 47.67 and Fwd P/E is 15.22. Profit margin for the company is 0.70%. Distance from 52-week low is 127.46% and -53.52% from its 52-week high. The company has generated returns on investments over the last 12 months (7.70%).

Aramark (ARMK) Analyst Forecasts

Analyst recommendations provided by FactSet shows that the consensus forecast for Aramark (ARMK) is a “Overweight”. 13 analysts offering their recommendations for the stock have an average rating of 2.30, where 6 rate it as a Hold and 0 think it is a “Overweight”. 7 of the analysts rate the stock as a “Buy”. 0 analysts have rated the stock as a Sell or Underperform.

Aramark is expected to release its quarterly report on 08/11/2020 and quarterly earnings per share for the current quarter are estimated at -$0.63 with sales reaching $2.15B over the same period.The EPS is expected to grow by 33.40% this year, but quarterly earnings will post -18.10% year-over-year. Quarterly sales are estimated to shrink -46.50% in year-over-year returns.

Aramark (ARMK) Top Institutional Holders

515 institutions hold shares in Aramark (ARMK), with 2.9M shares held by insiders accounting for 1.15% while institutional investors hold 89.89% of the company’s shares. The shares outstanding are 252.35M, and float is at 249.20M with Short Float at 5.69%. Institutions hold 88.86% of the Float.

The top institutional shareholder in the company is Vanguard Group, Inc. (The) with over 23.87 million shares valued at $476.69 million. The investor’s holdings represent 9.45% of the ARMK Shares outstanding. As of Mar 30, 2020, the second largest holder is Atlanta Capital Management Company LLC with 21.22 million shares valued at $423.79 million to account for 8.40% of the shares outstanding. The other top investors are Royal Bank of Canada which holds 19.14 million shares representing 7.58% and valued at over $382.16 million, while Nomura Holdings Inc. holds 6.38% of the shares totaling 16.12 million with a market value of $321.98 million.

Aramark (ARMK) Insider Activity

A total of 59 insider transactions have happened at Aramark (ARMK) in the last six months, with sales accounting for 5 and purchases happening 54 times. The most recent transaction is an insider sale by Bethel Keith, the company’s Chief Growth Officer. SEC filings show that Bethel Keith sold 5,000 shares of the company’s common stock on Jun 03 at a price of $28.02 per share for a total of $0.14 million. Following the sale, the insider now owns 50837.0 shares.

Aramark disclosed in a document filed with the SEC on May 28 that Bethel Keith (Chief Growth Officer) sold a total of 12,829 shares of the company’s common stock. The trade occurred on May 28 and was made at $27.56 per share for $0.35 million. Following the transaction, the insider now directly holds 50764.0 shares of the ARMK stock.

Still, SEC filings show that on May 08, Ondrof Thomas Gerard (Executive VP and CFO) acquired 10,000 shares at an average price of $24.99 for $0.25 million. The insider now directly holds 27,709 shares of Aramark (ARMK).

Aramark (ARMK): Who are the competitors?

The company’s main competitors (and peers) include Cintas Corporation (CTAS) that is trading 9.87% up over the past 12 months. General Electric Company (GE) is -35.39% down on the 1-year trading charts. Short interest in the company’s stock has fallen -11.07% from the last report on May 28, 2020 to stand at a total of 15.55 million short shares sold with a short interest ratio of 4.73.

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