The stock of Aramark (NYSE:ARMK) is now priced at $28.81 and the shares are 2.61 points up or 9.96% higher compared to its previous closing price of $26.2. The stock had 3.211 million contracts set over the past session. ARMK shares’ daily volume is compared to its average trading volume at 2.605 million shares. However, it has a float of 250 million and although its performance was 19.84% over the week, it’s one to watch. Analysts have given the ARMK stock a yearly average price target of $28.62 per share. It means the stock’s downside potential is -0.66% with the ARMK share price recently placing at $26.445 to $29.12. However, some brokerage firms have priced the stock below the average, including one that has called $23.
The shorts are running away from the Aramark stock, with the latest data on short interest released on July 31, 2020, showing that short interest numbers in the ARMK shares have declined. Short interest in the stock represents just 5.34% of its float, but the volume has dropped by 0.
In the last trading session, Aramark (NYSE:ARMK) raised by $4.77 over the week and gained $7.69 on its 20-day. The stock’s high in the recent session is lower when compared to its 52-week high of $47.22. The stock recorded its established 52-week high on 01/22/20.
Since 03/17/20, the stock has traded to a low of $9.65 at 198.55%, an encouraging piece of data likely to interest most investors out to exploit the stock’s recent surge. The stock has a beta allocation of 1.73. Being above 1 means that the stock’s volatility is higher than the market and traders are keenly watching it.
Looking at current readings, Aramark’s two-week RSI is 72.69. This suggests that the stock is oversold at the moment and that ARMK shares’ price movement remains not stable. The stochastic readings are equally revealing at 79.53% meaning the ARMK share price is currently in oversold territory.
The technical chart shows that the ARMK stock will likely settle at between $29.81 and $30.8 per share. However, if the stock dips below $27.13, then its market would become much weaker. Any downside could see the stock price sliding to levels as low as $25.45.
Currently, the stock is trading in the green of MACD, with a reading of 1.65. Investors always pay attention to any move above or below the zero-line, mainly because the indicator points to the position of the stock’s short-term average relative to its long-term measure. A MACD -a reading above the zero line means that the short-term is above the long-term average. This scenario implies that there is an upward momentum. The opposite is true when the MACD falls below the zero-line.
Analysts at RBC Capital Mkts cut their recommendation for ARMK from Outperform to Sector Perform in July 16 review while maintai their target price of $35 to $26. Bernstein analysts downgraded their recommendation of the stock from Outperform to Mkt Perform while keeping its target price at $34 in a flash note released to investors on June 10. Citigroup seeing the improvements upgraded the stock from Sell to Buy on March 23.
The average rating for the ARMK equity is 2.33 and is currently gathering a bullish momentum. Of 15 analysts tracking Aramark polled by Reuters, 9 rated ARMK as a hold. The remaining 6 analysts were split evenly. However, the split wasn’t equal as a majority (6) rated it as a buy or strong buy. 0 analyst advised investors against buying the stock or to sell if they own any of the stock.
Elsewhere, the ARMK stock price is 35.48X ahead of its 12-month Consensus earnings per share estimates. The stocks P/S ratio currently stands below the group’s average of 48.8.
Zacks Consensus Estimate forecasts that the current-quarter revenues for Aramark (NYSE:ARMK) will increase by about 26.86%, which will see them reach $2730 million. The company’s full-year revenues are, however, expected to diminish by about -20.64%, down from $16200 million to $12900 million. ARMK’s expected adjusted earnings should drop almost -136.23% to end up at -$0.25 per share, while for the fiscal year, analysts project the company’s earnings to drop by about -100.88% to record -$0.02/share.