Short Interest in Aramark (NYSE:ARMK) Drops By 19.3%

Aramark (NYSE:ARMK) was the target of a large drop in short interest during the month of January. As of January 15th, there was short interest totaling 8,029,088 shares, a drop of 19.3% from the December 31st total of 9,945,744 shares. Approximately 3.1% of the company’s shares are short sold. Based on an average trading volume of 2,467,340 shares, the short-interest ratio is currently 3.3 days. Based on an average trading volume of 2,467,340 shares, the short-interest ratio is currently 3.3 days. Approximately 3.1% of the company’s shares are short sold.

Aramark Stock Down 0.4%

Aramark stock traded down $0.17 during trading hours on Monday, hitting $38.32. The stock had a trading volume of 3,740,912 shares, compared to its average volume of 2,447,152. The stock’s 50-day moving average price is $38.01 and its 200-day moving average price is $38.84. The stock has a market capitalization of $10.07 billion, a P/E ratio of 31.41, a price-to-earnings-growth ratio of 1.28 and a beta of 1.09. Aramark has a 12-month low of $29.92 and a 12-month high of $44.49. The company has a quick ratio of 0.88, a current ratio of 0.99 and a debt-to-equity ratio of 1.71.

Aramark (NYSE:ARMK) last posted its earnings results on Monday, November 17th. The company reported $0.57 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.08). The business had revenue of $5.05 billion during the quarter, compared to the consensus estimate of $5.16 billion. Aramark had a return on equity of 16.39% and a net margin of 1.76%.The firm’s revenue for the quarter was up 14.3% on a year-over-year basis. During the same period in the previous year, the business posted $0.54 EPS. Aramark has set its FY 2026 guidance at 2.180-2.28 EPS. Equities research analysts anticipate that Aramark will post 1.92 EPS for the current fiscal year.

Aramark Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 17th. Investors of record on Friday, December 5th were given a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a yield of 1.3%. This is a boost from Aramark’s previous quarterly dividend of $0.11. The ex-dividend date was Friday, December 5th. Aramark’s dividend payout ratio (DPR) is currently 39.34%.

Hedge Funds Weigh In On Aramark

Institutional investors and hedge funds have recently made changes to their positions in the business. Capital International Investors increased its holdings in Aramark by 2.4% during the third quarter. Capital International Investors now owns 24,646,909 shares of the company’s stock valued at $946,455,000 after buying an additional 580,215 shares during the last quarter. Massachusetts Financial Services Co. MA increased its stake in shares of Aramark by 3.4% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 19,312,451 shares of the company’s stock worth $741,598,000 after purchasing an additional 639,423 shares in the last quarter. Junto Capital Management LP bought a new position in Aramark in the 3rd quarter worth $132,157,000. AQR Capital Management LLC lifted its position in Aramark by 281.1% during the third quarter. AQR Capital Management LLC now owns 3,367,964 shares of the company’s stock valued at $129,296,000 after purchasing an additional 2,484,319 shares in the last quarter. Finally, Norges Bank bought a new stake in Aramark during the second quarter valued at about $135,218,000.

Analyst Ratings Changes

ARMK has been the subject of a number of research reports. UBS Group reissued a “buy” rating on shares of Aramark in a research note on Tuesday, January 6th. Citigroup upped their target price on shares of Aramark from $46.50 to $49.00 and gave the stock a “buy” rating in a research report on Wednesday, November 19th. Stifel Nicolaus set a $44.00 price target on shares of Aramark in a research report on Monday, November 17th. Morgan Stanley upped their price objective on shares of Aramark from $43.00 to $44.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 17th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Aramark in a research note on Monday, December 29th. Four analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Aramark has a consensus rating of “Moderate Buy” and a consensus price target of $45.83.

Aramark Company Profile

Aramark (NYSE: ARMK) is a global provider of food services, facilities management and uniform solutions, serving clients across a wide array of industries including education, healthcare, business and government. The company operates through three primary segments: Food and Support Services, Uniform and Career Apparel, and Facility Services, delivering integrated solutions designed to enhance guest experiences, improve operational efficiencies and maintain safe, clean environments. Aramark’s offerings include corporate dining, patient and senior nutrition, campus dining, sports and entertainment concessions, custodial services, technical maintenance and industrial laundry.

Founded in 1959 and headquartered in Philadelphia, Pennsylvania, Aramark has expanded its footprint to more than 20 countries, with a strong presence in North America, Latin America, Europe and Asia.