Aramark (NYSE:ARMK) Short Interest Down 26.9% in February


Aramark (NYSE:ARMK) was the recipient of a large drop in short interest in the month of February. As of February 26th, there was short interest totalling 7,820,000 shares, a drop of 26.9% from the February 11th total of 10,700,000 shares. Based on an average daily volume of 1,910,000 shares, the days-to-cover ratio is currently 4.1 days.

In other news, EVP Lynn Mckee sold 94,518 shares of Aramark stock in a transaction that occurred on Tuesday, March 9th. The shares were sold at an average price of $42.00, for a total value of $3,969,756.00. Following the sale, the executive vice president now directly owns 301,579 shares in the company, valued at $12,666,318. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Lauren A. Harrington sold 10,000 shares of the business’s stock in a transaction on Thursday, March 11th. The stock was sold at an average price of $41.99, for a total transaction of $419,900.00. Following the completion of the sale, the senior vice president now directly owns 70,171 shares in the company, valued at approximately $2,946,480.29. The disclosure for this sale can be found here. Company insiders own 10.30% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of the company. CI Investments Inc. bought a new position in Aramark during the third quarter worth about $49,000. Endurance Wealth Management Inc. increased its holdings in shares of Aramark by 98.2% during the fourth quarter. Endurance Wealth Management Inc. now owns 2,725 shares of the company’s stock worth $105,000 after purchasing an additional 1,350 shares during the period. Ossiam acquired a new stake in shares of Aramark in the fourth quarter valued at approximately $190,000. The Manufacturers Life Insurance Company acquired a new stake in Aramark during the fourth quarter worth approximately $200,000. Finally, Financial Engines Advisors L.L.C. bought a new position in Aramark during the 4th quarter worth $209,000. 93.50% of the stock is owned by institutional investors.

ARMK traded down $0.64 on Tuesday, reaching $41.59. The company had a trading volume of 9,998,343 shares, compared to its average volume of 2,141,853. The stock has a market cap of $10.56 billion, a P/E ratio of -22.73 and a beta of 1.88. The company has a debt-to-equity ratio of 3.35, a quick ratio of 1.81 and a current ratio of 1.99. Aramark has a fifty-two week low of $9.65 and a fifty-two week high of $43.12. The company’s fifty day moving average is $37.91 and its 200 day moving average is $33.95.

Aramark (NYSE:ARMK) last issued its quarterly earnings data on Monday, February 8th. The company reported ($0.31) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.41) by $0.10. The company had revenue of $2.74 billion during the quarter, compared to analysts’ expectations of $2.72 billion. Aramark had a negative return on equity of 1.48% and a negative net margin of 3.60%. The business’s revenue was down 35.5% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.62 earnings per share. On average, sell-side analysts expect that Aramark will post -0.28 EPS for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, March 3rd. Shareholders of record on Wednesday, February 17th were given a dividend of $0.11 per share. This represents a $0.44 annualized dividend and a yield of 1.06%. The ex-dividend date of this dividend was Tuesday, February 16th. Aramark’s payout ratio is -258.82%.

A number of analysts recently issued reports on ARMK shares. Barclays lifted their target price on Aramark from $35.00 to $40.00 and gave the company an “equal weight” rating in a research report on Tuesday, December 8th. TheStreet upgraded Aramark from a “d+” rating to a “c-” rating in a research note on Wednesday, March 10th. Royal Bank of Canada increased their price objective on Aramark from $28.00 to $31.00 and gave the company a “sector perform” rating in a report on Wednesday, November 18th. Zacks Investment Research upgraded shares of Aramark from a “sell” rating to a “hold” rating in a report on Friday, February 12th. Finally, JPMorgan Chase & Co. reiterated a “buy” rating and issued a $40.00 price target on shares of Aramark in a research note on Sunday. Ten equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus price target of $32.08.

About Aramark

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

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