Aramark Stock Rises After Earnings Results, Spinoff News

The company announced plans to separate its uniform services business

Deputy Editor
May 10, 2022 at 10:14 AM
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Food services stock Aramark (NYSE:ARMK) is on the rise this morning, last seen up 3.1% to trade at $35.33, after the company's fiscal second-quarter report. Aramark reported profits of 22 cents per share -- in line with estimates -- as well as better-than-expected revenue. Plus, the company announced its plan to separate its uniform services business into its own publicly traded company. 

ARMK is accustomed to tumultuous trading on the charts, swinging between the $32 and $40 regions for roughly a year. Year-to-date, the equity is holding onto a 4.5% gain. Aramark stock could be due for a short-term bounce, however, as its relative strength index (RSI) of 30.5 sits just on the cusp of "oversold" territory. 

Though the volume is quite low, the options pits have been much more bearish than usual, per Aramark stock's 10-day put/call volume ratio of 6.00 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 90% of readings from the past year, showing a strong penchant for puts as of late. 

Analysts have yet to chime in today, though there is plenty of room for upgrades. Of the 11 in coverage, six carry a "hold" or worse rating on the stock. 

 

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