Aramark (NYSE:ARMK) Stock: Clues to Figure Out Next Bull Run

Stock analysts at Berenberg cut their rating on shares of Aramark (NYSE:ARMK) from Buy to a new rating of Hold in their opinion released on January 17.

Let’s take a glimpse at some insider activity at Aramark (NYSE:ARMK) and observe the pattern. The earliest insider trade happened on 11/27/2019. MCKEE LYNN parted with a total of 250 thousand shares of the firm at average share price of $44.14. The total amount for the sale was set at $11.04 million. On completing this exchange, the EVP, Human Resources account balance was 371.66 thousand shares. The stock lost -2.36 percent from that insider sale. On 11/21/2019, ZILLMER JOHN J, CEO, did a purchase of 35 thousand shares at a price of $42.68 per share. This increased 1.49 million shares to the insider’s fortune and the stock experienced a 0.98 percent rally in price since the news became public. This exchange saw 236.03 thousand shares get into the CEO account. On 08/15/2019, Chief Growth Officer Bethel Keith recorded a sale transaction valued at $280.5 thousand. The sale at $37.4 a share has eliminated 7.5 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 15.24 percent increase since the transaction reporting date. The company insider is left with 43.69 thousand shares remaining in the account. MCKEE LYNN, who works as EVP, Human Resources at the company, performed a sale of 43.92 thousand shares in a transaction worth $1.3 million. The disposal recorded on 03/08/2019 was priced at $29.58 per share. The stock price soared 45.71 percent since the transaction. MCKEE LYNN currently holds a stake of 352.18 thousand in ARMK stock which is worth $15.19 million after the insider selling.

Aramark (ARMK) is most likely going to rise 12.7 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $57 as 12-month high price target. This represents a whopping 32.13 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $49, which means a return possibility of 13.58 percent in comparison with the closing price of the stock of $43.14 in recent trading session. The lowest price set for the stock is $37 which is just above -14.23 percent from ARMK share’s price at the end of session.

The stock is lingering around the initial support level of $42.58. After this, the following support is at the zone of $42.01. Up until the time the ARMK stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 36.82 on the daily chart, and this may be a cause for comfort. In case the price goes below $42.01 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $43.95 level may cause a pull-back move approaching $44.75 mark.

In the recent trading session, Aramark (NYSE:ARMK) shares lost 0% or 0 points to reach at $43.14 with a thin trading volume of 1.464 million shares. It opened the trading session at $43.47, the shares rose to $44.19 and dropped to $42.82, the range by which the price of stock traded the whole session. The company now has a market cap of $11.1 billion and currently has 256.45 million outstanding shares. Aramark (ARMK) stock has plunged -0.3 percent of market value in 21 trading days.

ARMK stock’s trailing 3-year beta is 0.88, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $1.73 share in the trailing 52 weeks. The stock’s value fallen -0.6 percent year to date (YTD) compared to a rise of 27.6 percent in 52 week’s period. The firm’s shares are still trading -8.64 percent below its 1-year high of $47.22 and 69.24 percent up from 52-week low of $25.49. The average consensus ranking on the company is 2.2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a sell.

Aramark (ARMK) shares are trading at a P/E ratio of 25.39 times earnings posted in the trailing 12 months. The industry ARMK deals with has an average P/E of 31.67. Its P/B ratio is standing at 3.26X compared to the 7.8 industry average. It is additionally sporting a 0.66 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.86. Aramark has a 10.4% gross profit margin, with its operating margin around 5.5%. Alongside this, the company’s net profit margin currently stands at 2.8%.

Past records have indicated that shares in Aramark rose on 14 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings.