Aramark (NYSE:ARMK) Sees Significant Decline in Short Interest

Aramark (NYSE:ARMK) was the target of a significant drop in short interest in the month of May. As of May 31st, there was short interest totalling 8,090,000 shares, a drop of 26.9% from the May 15th total of 11,060,000 shares. Based on an average trading volume of 2,100,000 shares, the days-to-cover ratio is presently 3.9 days. Approximately 3.1% of the company’s shares are sold short.

Aramark Trading Up 1.7%

Shares of NYSE ARMK opened at $40.12 on Friday. Aramark has a 1-year low of $29.92 and a 1-year high of $42.49. The business has a fifty day moving average price of $37.24 and a 200 day moving average price of $37.03. The stock has a market capitalization of $10.51 billion, a P/E ratio of 30.86 and a beta of 1.28. The company has a debt-to-equity ratio of 2.02, a current ratio of 1.21 and a quick ratio of 1.08.

Aramark (NYSE:ARMK) last released its quarterly earnings results on Tuesday, May 6th. The company reported $0.34 EPS for the quarter, beating the consensus estimate of $0.33 by $0.01. Aramark had a net margin of 1.97% and a return on equity of 15.07%. The business had revenue of $4.33 billion during the quarter, compared to analyst estimates of $4.35 billion. During the same period in the prior year, the firm posted $0.30 earnings per share. The company’s quarterly revenue was up 1.9% on a year-over-year basis. Equities research analysts expect that Aramark will post 1.92 EPS for the current fiscal year.

Aramark Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 28th. Shareholders of record on Wednesday, May 14th were paid a $0.105 dividend. This represents a $0.42 annualized dividend and a yield of 1.05%. Aramark’s dividend payout ratio (DPR) is 32.31%.

Analyst Ratings Changes

A number of brokerages recently issued reports on ARMK. Citigroup started coverage on Aramark in a report on Monday, February 24th. They issued a “buy” rating and a $48.00 price target for the company. Morgan Stanley increased their price target on Aramark from $40.00 to $42.00 and gave the stock an “equal weight” rating in a research report on Wednesday, May 7th. UBS Group raised their price target on Aramark from $40.00 to $44.00 and gave the company a “buy” rating in a research note on Wednesday, May 7th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $47.00 price objective on shares of Aramark in a research note on Wednesday, May 14th. Three investment analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $43.73.

Hedge Funds Weigh In On Aramark

A number of large investors have recently made changes to their positions in ARMK. Oregon Public Employees Retirement Fund boosted its position in shares of Aramark by 0.5% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 53,654 shares of the company’s stock worth $2,002,000 after purchasing an additional 276 shares in the last quarter. Jones Financial Companies Lllp lifted its stake in shares of Aramark by 45.7% during the fourth quarter. Jones Financial Companies Lllp now owns 988 shares of the company’s stock worth $37,000 after buying an additional 310 shares during the period. Bessemer Group Inc. grew its stake in Aramark by 93.0% during the 4th quarter. Bessemer Group Inc. now owns 770 shares of the company’s stock valued at $29,000 after purchasing an additional 371 shares during the last quarter. Great Lakes Advisors LLC boosted its position in Aramark by 4.3% in the first quarter. Great Lakes Advisors LLC now owns 9,267 shares of the company’s stock valued at $320,000 after buying an additional 378 shares during the last quarter. Finally, CIBC Asset Management Inc increased its stake in shares of Aramark by 5.1% in the fourth quarter. CIBC Asset Management Inc now owns 8,012 shares of the company’s stock worth $299,000 after acquiring an additional 391 shares during the period.

Aramark Company Profile

Aramark provides food and facilities services to education, healthcare, business and industry, sports, leisure, and corrections clients in the United States and internationally. It operates through two segments, Food and Support Services United States, and Food and Support Services International. The company offers food-related managed services, including dining, catering, food service management, and convenience-oriented retail services; non-clinical food and food-related support services, such as patient food and nutrition, retail food, environmental services, and procurement services; and plant operations and maintenance, custodial/housekeeping, energy management, grounds keeping, and capital project management services.