Zacks Investment Research upgraded shares of ABM Industries Incorporated (NYSE:ABM) from a strong sell rating to a hold rating in a research report released on Tuesday, November 7th.
According to Zacks, “ABM has underperformed the industry year to date due to macroeconomic concerns. Brexit could further result in higher tariff and non-tariff barriers to trade between the U.K. and the European Union, lowering its productivity. The company is likely to be stifled by the renegotiated deals and restrictions imposed on trade with other European Union members. Strong competitive pressures could also limit ABM’s success rate in bidding for profitable businesses and its ability to increase prices in accordance with the rising costs. However, the acquisition of GCA Services Group is likely to offer profitable growth opportunities, yielding greater efficiencies and costs synergies. ABM’s comprehensive, strategic and transformative initiatives are focused on driving sustainable profitability by effectively allocating resources to higher margin services and business verticals with a strong competitive edge.”
Several other analysts have also recently issued reports on the company. KeyCorp upgraded ABM Industries from a sector weight rating to an overweight rating and set a $48.00 target price for the company in a report on Monday, September 11th. BidaskClub upgraded ABM Industries from a buy rating to a strong-buy rating in a report on Saturday, August 26th. Robert W. Baird reissued an outperform rating and set a $47.00 target price (down previously from $49.00) on shares of ABM Industries in a research note on Thursday, July 13th. Finally, Sidoti raised ABM Industries from a neutral rating to a buy rating and increased their target price for the stock from $49.00 to $55.00 in a research note on Thursday, July 13th. One analyst has rated the stock with a hold rating, three have given a buy rating and one has issued a strong buy rating to the company’s stock. ABM Industries currently has an average rating of Buy and an average price target of $48.20.
ABM Industries (NYSE:ABM) last announced its quarterly earnings results on Wednesday, September 6th. The business services provider reported $0.51 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.54 by ($0.03). The company had revenue of $1.32 billion during the quarter, compared to analyst estimates of $1.32 billion. ABM Industries had a net margin of 0.29% and a return on equity of 11.37%. The company’s revenue was up 1.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.54 earnings per share. analysts predict that ABM Industries will post 1.85 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Monday, November 6th. Stockholders of record on Thursday, October 5th were issued a $0.17 dividend. The ex-dividend date was Wednesday, October 4th. This represents a $0.68 dividend on an annualized basis and a dividend yield of 1.65%. ABM Industries’s dividend payout ratio (DPR) is 251.86%.
In other ABM Industries news, SVP Dean A. Chin sold 880 shares of the business’s stock in a transaction dated Wednesday, October 4th. The stock was sold at an average price of $42.90, for a total transaction of $37,752.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Scott J. Giacobbe sold 11,094 shares of the company’s stock in a transaction dated Wednesday, September 13th. The stock was sold at an average price of $39.92, for a total value of $442,872.48. Following the completion of the sale, the insider now directly owns 59,152 shares of the company’s stock, valued at approximately $2,361,347.84. The disclosure for this sale can be found here. Insiders own 1.30% of the company’s stock.
A number of hedge funds and other institutional investors have recently made changes to their positions in ABM. FMR LLC raised its stake in ABM Industries by 21.9% during the first quarter. FMR LLC now owns 588,000 shares of the business services provider’s stock valued at $25,637,000 after buying an additional 105,735 shares in the last quarter. Teachers Advisors LLC boosted its stake in ABM Industries by 332.4% during the 1st quarter. Teachers Advisors LLC now owns 407,119 shares of the business services provider’s stock valued at $17,750,000 after purchasing an additional 312,972 shares in the last quarter. PNC Financial Services Group Inc. boosted its stake in ABM Industries by 6.6% during the 1st quarter. PNC Financial Services Group Inc. now owns 3,839 shares of the business services provider’s stock valued at $167,000 after purchasing an additional 236 shares in the last quarter. Vanguard Group Inc. boosted its stake in ABM Industries by 6.8% during the 1st quarter. Vanguard Group Inc. now owns 5,261,484 shares of the business services provider’s stock valued at $229,401,000 after purchasing an additional 333,410 shares in the last quarter. Finally, Geode Capital Management LLC boosted its stake in ABM Industries by 6.5% during the 1st quarter. Geode Capital Management LLC now owns 431,123 shares of the business services provider’s stock valued at $18,796,000 after purchasing an additional 26,405 shares in the last quarter. Hedge funds and other institutional investors own 86.58% of the company’s stock.
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About ABM Industries
ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs.
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