Exclusive: Is Aramark a Sell? The Stock Declines Again

Exclusive: Is Aramark a Sell? The Stock Declines Again

The stock of Aramark (NYSE:ARMK) is a huge mover today! About 4.73 million shares traded hands or 221.77% up from the average. Aramark (NYSE:ARMK) has risen 9.85% since April 13, 2016 and is uptrending. It has outperformed by 5.92% the S&P500.
The move comes after 5 months negative chart setup for the $8.15 billion company. It was reported on Nov, 15 by Barchart.com. We have $30.86 PT which if reached, will make NYSE:ARMK worth $570.50M less.

Analysts await Aramark (NYSE:ARMK) to report earnings on November, 16. They expect $0.45 earnings per share, up 12.50% or $0.05 from last year’s $0.4 per share. ARMK’s profit will be $110.53M for 18.43 P/E if the $0.45 EPS becomes a reality. After $0.30 actual earnings per share reported by Aramark for the previous quarter, Wall Street now forecasts 50.00% EPS growth.

Aramark (NYSE:ARMK) Ratings Coverage

Out of 9 analysts covering Aramark Holdings Corporation (NYSE:ARMK), 9 rate it a “Buy”, 0 “Sell”, while 0 “Hold”. This means 100% are positive. Aramark Holdings Corporation has been the topic of 13 analyst reports since August 13, 2015 according to StockzIntelligence Inc. Barclays Capital maintained Aramark (NYSE:ARMK) rating on Thursday, August 11. Barclays Capital has “Overweight” rating and $40 price target. Credit Suisse initiated the shares of ARMK in a report on Friday, August 14 with “Outperform” rating. The firm has “Outperform” rating by Robert W. Baird given on Thursday, August 13. As per Thursday, August 11, the company rating was maintained by JP Morgan. Zacks upgraded the shares of ARMK in a report on Wednesday, August 12 to “Sell” rating. The stock of Aramark (NYSE:ARMK) has “Top Pick” rating given on Thursday, August 11 by RBC Capital Markets. Nomura maintained it with “Buy” rating and $42 target price in Thursday, August 11 report. Macquarie Research initiated Aramark (NYSE:ARMK) on Friday, August 26 with “Outperform” rating. RBC Capital Markets maintained Aramark (NYSE:ARMK) rating on Friday, November 6. RBC Capital Markets has “Top Pick” rating and $37 price target. On Thursday, August 13 the stock rating was maintained by RBC Capital Markets with “Top Pick”.

According to Zacks Investment Research, “ARAMARK Holdings Corporation offers food services, facilities management, uniform and career apparel to health care institutions, universities, school districts, stadiums and businesses. It operates primarily in three segments: Food and Support Services North America, Food and Support Services International and Uniform and Career Apparel segment. The company’s FSS North America and FSS International segment provides food, refreshment, specialized dietary and support services, including facility maintenance and housekeeping. Uniform segment provides rental, sale, cleaning, maintenance and delivery of personalized uniform and career apparel and other textile items. It operates primarily in North America, United Kingdom, Germany, Chile and Ireland. ARAMARK Holdings Corporation is headquartered in Philadelphia, PA.”

Insitutional Activity: The institutional sentiment increased to 1.61 in Q2 2016. Its up 0.29, from 1.32 in 2016Q1. The ratio is positive, as 28 funds sold all Aramark shares owned while 73 reduced positions. 33 funds bought stakes while 130 increased positions. They now own 224.71 million shares or 1.05% less from 227.09 million shares in 2016Q1.
Citadel Advisors Ltd holds 0.06% or 1.67M shares in its portfolio. Quantitative Ltd Liability Corp accumulated 34,000 shares or 0.05% of the stock. Stephens Ar holds 0.24% of its portfolio in Aramark (NYSE:ARMK) for 162,423 shares. The Japan-based Mizuho Asset Mngmt Coltd has invested 0.02% in Aramark (NYSE:ARMK). Legal & General Plc has 0.01% invested in the company for 206,578 shares. Global Thematic Lc, a New York-based fund reported 1.80M shares. Samlyn Capital Llc has 6.98M shares for 5.57% of their US portfolio. The New York-based Jane Street Grp Incorporated Ltd Liability Corp has invested 0% in Aramark (NYSE:ARMK). Pax Ww Management Limited Liability Co holds 0.15% of its portfolio in Aramark (NYSE:ARMK) for 75,000 shares. Catalyst Capital Advsrs Limited Liability has invested 0% of its portfolio in Aramark (NYSE:ARMK). Checchi Advisers Ltd Limited Liability Company holds 0% or 609 shares in its portfolio. Kbc Nv holds 0.01% of its portfolio in Aramark (NYSE:ARMK) for 18,380 shares. Blackrock Japan Com has invested 0.03% of its portfolio in Aramark (NYSE:ARMK). Mu Invs last reported 0.1% of its portfolio in the stock. Moreover, Alleghany De has 1.79% invested in Aramark (NYSE:ARMK) for 1.40M shares.

Insider Transactions: Since May 27, 2016, the stock had 0 buys, and 2 selling transactions for $5.21 million net activity. $3.11 million worth of shares were sold by Reynolds Stephen R on Friday, May 27.

More notable recent Aramark (NYSE:ARMK) news were published by: Marketwatch.com which released: “Aramark revenue falls short, hurt by energy” on November 15, 2016, also Nasdaq.com with their article: “Aramark Breaks Below 200-Day Moving Average – Notable for ARMK” published on November 15, 2016, Philly.com published: “Joseph Neubauer: Aramark’s service-industry legend” on November 11, 2016. More interesting news about Aramark (NYSE:ARMK) were released by: Prnewswire.com and their article: “Aramark Reports Fourth Quarter and Full Year 2016 Results” published on November 15, 2016 as well as Prnewswire.com‘s news article titled: “Aramark Named to 2016 Best Companies For Diversity List by BLACK ENTERPRISE” with publication date: November 09, 2016.

ARMK Company Profile

Aramark, formerly ARAMARK Holdings Corporation, incorporated on May 12, 2006, is a global well-known provider of food, facilities and uniform services to education, healthcare, business and industry and sports, leisure and corrections clients. The Company’s core market is North America. It serves students, patients, employees, sports fans and guests worldwide. It serves over 500 million meals annually to approximately five million students at colleges, universities, and K-12 schools, services over 2,000 healthcare facilities, caters to approximately 100 million sports fans, and operates in 22 countries in North America, Europe, Asia and South America, as of September 28, 2012. It operates in three reportable divisions: food and Support Services North America, or FSS North America, Food and Support Services International, or FSS International, and Uniform and Career Apparel, or Uniform. The Company’s business is generally focused around key client types, such as education, healthcare, business and industry, sports and leisure and corrections.

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