According to Zacks, “G&K Services, Inc. is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. G&K operates over processing facilities and branch offices. “
A number of other brokerages also recently commented on GK. JPMorgan Chase & Co. downgraded shares of G&K Services from an overweight rating to a neutral rating and set a $97.00 target price for the company. in a report on Thursday, August 18th. Robert W. Baird upgraded G&K Services from a neutral rating to an outperform rating and set a $111.00 price target on the stock in a research note on Wednesday, August 17th. Finally, Sidoti lowered G&K Services from a buy rating to a neutral rating in a research note on Monday, June 6th. Four research analysts have rated the stock with a hold rating and one has issued a buy rating to the company. The company currently has a consensus rating of Hold and an average price target of $94.67.
Shares of G&K Services (NASDAQ:GK) opened at 96.63 on Monday. The company has a market cap of $1.90 billion, a PE ratio of 26.77 and a beta of 1.17. The firm’s 50-day moving average is $93.24 and its 200-day moving average is $79.15. G&K Services has a 1-year low of $51.94 and a 1-year high of $98.22.
G&K Services (NASDAQ:GK) last announced its earnings results on Tuesday, August 16th. The company reported $1.00 EPS for the quarter, topping the Zacks’ consensus estimate of $0.95 by $0.05. The business earned $258.50 million during the quarter, compared to the consensus estimate of $257.80 million. G&K Services had a net margin of 7.38% and a return on equity of 18.89%. The firm’s revenue was up 9.3% on a year-over-year basis. During the same period in the previous year, the company posted $0.83 earnings per share. On average, equities analysts forecast that G&K Services will post $3.89 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, September 23rd. Investors of record on Thursday, September 8th will be given a $0.39 dividend. The ex-dividend date is Tuesday, September 6th. This represents a $1.56 dividend on an annualized basis and a yield of 1.61%. This is a positive change from G&K Services’s previous quarterly dividend of $0.37. G&K Services’s dividend payout ratio is currently 43.21%.
In other G&K Services news, Director John S. Bronson sold 3,369 shares of the business’s stock in a transaction that occurred on Monday, August 29th. The stock was sold at an average price of $97.24, for a total value of $327,601.56. Following the completion of the transaction, the director now directly owns 6,026 shares of the company’s stock, valued at $585,968.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director M Lenny Pippin sold 2,400 shares of the business’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $97.30, for a total value of $233,520.00. Following the completion of the transaction, the director now directly owns 22,398 shares of the company’s stock, valued at $2,179,325.40. The disclosure for this sale can be found here. 3.66% of the stock is owned by corporate insiders.
Hedge funds and other institutional investors have recently made changes to their positions in the company. TimesSquare Capital Management LLC acquired a new position in shares of G&K Services during the second quarter valued at $42,640,000. JPMorgan Chase & Co. increased its position in shares of G&K Services by 213.0% in the first quarter. JPMorgan Chase & Co. now owns 470,753 shares of the company’s stock valued at $34,482,000 after buying an additional 320,343 shares during the last quarter. Norges Bank acquired a new position in shares of G&K Services during the fourth quarter valued at $13,397,000. Westwood Holdings Group Inc. increased its position in shares of G&K Services by 572.2% in the second quarter. Westwood Holdings Group Inc. now owns 94,051 shares of the company’s stock valued at $7,201,000 after buying an additional 80,059 shares during the last quarter. Finally, Wellington Management Group LLP increased its position in shares of G&K Services by 4.5% in the first quarter. Wellington Management Group LLP now owns 1,798,623 shares of the company’s stock valued at $131,749,000 after buying an additional 77,469 shares during the last quarter. 94.75% of the stock is owned by institutional investors and hedge funds.
About G&K Services
G&K Services, Inc is a service-focused market leader of branded uniform and facility services programs. The Company’s facility products and services include floor mats, towels, mops and restroom hygiene products. The Company serves customers in industries including automotive, warehousing, distribution, transportation, energy, manufacturing, food processing, pharmaceutical, retail, restaurants, hospitality, government, healthcare and others.
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