Aramark (NYSE:ARMK) Raises Dividend to $0.11 Per Share

Aramark (NYSE:ARMK) declared a quarterly dividend on Monday, January 27th,NASDAQ Dividends reports. Stockholders of record on Monday, February 10th will be given a dividend of 0.105 per share on Monday, February 24th. This represents a $0.42 dividend on an annualized basis and a dividend yield of 1.07%. The ex-dividend date is Monday, February 10th. This is a boost from Aramark’s previous quarterly dividend of $0.001.

Aramark has decreased its dividend by an average of 3.9% per year over the last three years. Aramark has a dividend payout ratio of 18.3% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Aramark to earn $2.27 per share next year, which means the company should continue to be able to cover its $0.42 annual dividend with an expected future payout ratio of 18.5%.

Aramark Trading Up 0.1 %

Aramark stock traded up $0.05 during trading on Tuesday, hitting $39.43. The company had a trading volume of 1,578,163 shares, compared to its average volume of 1,812,110. The company has a current ratio of 0.81, a quick ratio of 0.72 and a debt-to-equity ratio of 1.42. The stock has a market cap of $10.44 billion, a price-to-earnings ratio of 39.82 and a beta of 1.64. Aramark has a 1-year low of $28.39 and a 1-year high of $42.49. The company’s 50 day simple moving average is $38.85 and its 200-day simple moving average is $37.42.

Aramark (NYSE:ARMK) last announced its earnings results on Monday, November 11th. The company reported $0.54 earnings per share for the quarter, hitting the consensus estimate of $0.54. The firm had revenue of $4.42 billion for the quarter, compared to the consensus estimate of $4.46 billion. Aramark had a net margin of 1.51% and a return on equity of 14.06%. The firm’s revenue for the quarter was up 5.2% on a year-over-year basis. During the same period in the prior year, the firm earned $0.64 EPS. As a group, analysts expect that Aramark will post 1.92 EPS for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ARMK. Stifel Nicolaus lifted their price target on shares of Aramark from $43.00 to $45.00 and gave the stock a “buy” rating in a research note on Tuesday, November 12th. JPMorgan Chase & Co. upped their target price on Aramark from $41.00 to $45.00 and gave the company an “overweight” rating in a research report on Tuesday, November 12th. Truist Financial lifted their price objective on shares of Aramark from $42.00 to $46.00 and gave the company a “buy” rating in a research note on Tuesday, November 12th. StockNews.com cut Aramark from a “buy” rating to a “hold” rating in a research note on Tuesday, January 7th. Finally, Morgan Stanley raised their price objective on shares of Aramark from $40.00 to $43.00 and gave the company an “equal weight” rating in a research report on Thursday, December 12th. Three investment analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $42.59.

About Aramark

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.