Aramark (ARMK) Downgraded by Zacks Investment Research

Aramark (NYSE:ARMK) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a note issued to investors on Tuesday.

According to Zacks, “ARAMARK Holdings Corporation offers food services, facilities management, uniform and career apparel to health care institutions, universities, school districts, stadiums and businesses. It operates primarily in three segments: Food and Support Services North America, Food and Support Services International and Uniform and Career Apparel segment. The company’s FSS North America and FSS International segment provides food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping. Uniform segment provides rental, sale, cleaning, maintenance and delivery of personalized uniform and career apparel and other textile items. It operates primarily in North America, United Kingdom, Germany, Chile and Ireland. ARAMARK Holdings Corporation is headquartered in Philadelphia, PA. “

Other research analysts have also issued reports about the stock. Robert W. Baird lowered shares of Aramark from an “outperform” rating to a “neutral” rating and set a $37.00 price objective for the company. in a report on Wednesday, August 8th. ValuEngine raised shares of Aramark from a “sell” rating to a “hold” rating in a report on Friday, July 20th. Morgan Stanley reaffirmed a “hold” rating and issued a $45.00 price target (up from $44.00) on shares of Aramark in a report on Thursday, September 13th. Barclays decreased their price target on shares of Aramark from $47.00 to $42.00 and set an “equal weight” rating for the company in a report on Wednesday, October 24th. Finally, Credit Suisse Group started coverage on shares of Aramark in a report on Friday, August 10th. They issued an “outperform” rating and a $52.00 price target for the company. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and six have issued a buy rating to the stock. The company has an average rating of “Hold” and a consensus target price of $47.44.

Aramark stock traded up $0.85 during midday trading on Tuesday, hitting $35.44. 10,271,286 shares of the stock were exchanged, compared to its average volume of 1,666,536. The company has a market capitalization of $8.77 billion, a price-to-earnings ratio of 20.02, a price-to-earnings-growth ratio of 1.20 and a beta of 0.88. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.36 and a quick ratio of 1.03. Aramark has a 1 year low of $33.98 and a 1 year high of $46.09.

Aramark (NYSE:ARMK) last announced its quarterly earnings data on Tuesday, November 13th. The company reported $0.70 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.72 by ($0.02). The company had revenue of $3.91 billion for the quarter, compared to analyst estimates of $3.96 billion. Aramark had a return on equity of 17.37% and a net margin of 3.26%. Aramark’s revenue was up 7.1% on a year-over-year basis. During the same period in the prior year, the business earned $0.54 earnings per share. Analysts forecast that Aramark will post 1.99 earnings per share for the current fiscal year.

In other news, EVP Stephen R. Reynolds sold 15,000 shares of Aramark stock in a transaction dated Wednesday, August 29th. The shares were sold at an average price of $41.33, for a total value of $619,950.00. Following the completion of the transaction, the executive vice president now directly owns 47,058 shares of the company’s stock, valued at approximately $1,944,907.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 3.30% of the company’s stock.

A number of institutional investors have recently bought and sold shares of the business. Allianz Asset Management GmbH boosted its stake in Aramark by 1.7% during the 3rd quarter. Allianz Asset Management GmbH now owns 193,027 shares of the company’s stock valued at $8,304,000 after purchasing an additional 3,171 shares during the period. Royce & Associates LP boosted its stake in Aramark by 8.3% during the 3rd quarter. Royce & Associates LP now owns 78,700 shares of the company’s stock valued at $3,386,000 after purchasing an additional 6,000 shares during the period. GSA Capital Partners LLP acquired a new position in Aramark during the 3rd quarter valued at about $3,096,000. Hsbc Holdings PLC boosted its stake in Aramark by 1.9% during the 3rd quarter. Hsbc Holdings PLC now owns 568,555 shares of the company’s stock valued at $24,448,000 after purchasing an additional 10,471 shares during the period. Finally, Fuller & Thaler Asset Management Inc. boosted its stake in Aramark by 39.9% during the 3rd quarter. Fuller & Thaler Asset Management Inc. now owns 7,190 shares of the company’s stock valued at $309,000 after purchasing an additional 2,050 shares during the period. 97.58% of the stock is owned by hedge funds and other institutional investors.

About Aramark

Aramark provides food, facilities, and uniform services to education, healthcare, business and industry, sports, leisure, and corrections clients in North America and internationally. The company operates through three segments: Food and Support Services North America, Food and Support Services International, Uniform and Career Apparel.

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