Are Aramark (ARMK) stocks a prudent buy?

Aramark [ARMK] stock is trading at $31.95, up 0.16%. An important factor to consider is whether the stock is rising or falling in short-term value. The ARMK shares have gain 1.24% over the last week, with a monthly amount drifted -2.05%, and not seem to be holding up well over a long-time horizon.

3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free
Sponsored

On 27, March 2024, Aramark Completes Debt Repricing. In a post published today on Yahoo Finance, Proactively reduced pricing on Term Loans due 2028 and 2030 by 50 basis points.

From an analyst’s perspective:

Aramark [NYSE: ARMK] stock has seen the most recent analyst activity on January 17, 2024, when Goldman initiated its Buy rating and assigned the stock a price target of $33. Previously, Truist started tracking the stock with Buy rating on January 08, 2024, and set its price target to $33. On October 09, 2023, upgrade upgraded it’s rating to Buy and revised its price target to $29 on the stock. Citigroup upgraded its rating to a Buy and increased its price target to $47 on September 01, 2023. UBS upgraded its rating to a Buy but $43 remained the price target by the analyst firm on August 22, 2023. Bernstein upgraded its rating to Outperform for this stock on July 17, 2023, but kept the price target unchanged to $49. In a note dated June 01, 2023, UBS initiated an Neutral rating and provided a target price of $42 on this stock.

Aramark [ARMK] stock has fluctuated between $23.95 and $33.04 over the past year. Currently, Wall Street analysts expect the stock to reach $40.88 within the next 12 months. Aramark [NYSE: ARMK] shares were valued at $31.95 at the most recent close of the market. An investor can expect a potential return of 27.95% based on the average ARMK price forecast.

Analyzing the ARMK fundamentals

Aramark [NYSE:ARMK] reported sales of 18.66B for the trailing twelve months, which represents a drop of -4.20%. Gross Profit Margin for this corporation currently stands at 0.09% with Operating Profit Margin at 0.04%, Pretax Profit Margin comes in at 0.04%, and Net Profit Margin reading is 0.03%. To continue investigating profitability, this company’s Return on Assets is posted at 0.05, Equity is 0.19 and Total Capital is 0.08. Upon thorough examination of the company’s fundamental financial framework, it becomes apparent that the debt-to-equity ratio stands at 2.2.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 31.72 points at the first support level, and at 31.48 for the second support level. However, for the 1st resistance point, the stock is sitting at 32.18, and for the 2nd resistance point, it is at 32.40.

Aramark [ARMK] reported earnings per share of $0.41 for its fiscal quarter that ended on 12/30/2023. Based on the Wall Street analysts’ estimates, the company was expected to report earnings of $0.36/share, meaning a difference of $0.05 and a surprise factor of 13.90%. By comparison, the stated earnings for the previous quarter ended on 9/29/2023 were $0.64 per share as compared to estimates of $0.64 per share, a difference of $0 representing a surprise of 0.00%.

Ratios To Look Out For

For context, Aramark’s Current Ratio is 1.27. On the other hand, the Quick Ratio is 1.12, and the Cash Ratio is 0.12. Considering the valuation of this stock, the price to sales ratio is 0.45, the price to book ratio is 2.94 and price to earnings (TTM) ratio is 13.37.

Transactions by insiders

Recent insider trading involved Harrington Lauren A, SVP and General Counsel, that happened on Mar 05 ’24 when 13384.0 shares were sold. SVP and General Counsel, Harrington Lauren A completed a deal on Dec 15 ’23 to sell 4274.0 shares. Meanwhile, COO, U.S. Food & Facilities Bruno Marc A sold 27884.0 shares on Dec 13 ’23.

Related Posts