ABM Industries (ABM) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of ABM Industries (NYSE:ABM) from a sell rating to a hold rating in a report released on Tuesday.
According to Zacks, “ABM Industries posted strong third-quarter fiscal 2018 results wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company’s strategy to grow through acquisitions while maintaining desirable profit margins have paid off with top line growth. The company has embarked on 2020 Vision that outlines its long-term vision for the next five years. Systematic and strategic plans of actions are likely to drive long-term profitable growth for ABM through an industry-based go-to-market approach. The company has been consistent in rewarding its shareholders. Despite such positives, shares of ABM have underperformed its industry's growth over the past year.Increasing expenses (due to expenses related to GCA-buyout and higher wage and overtime costs resulting from a tight labor market) has become a concern for ABM Industries as it is likely to weigh on its bottom line. A debt-laden balance sheet is another major headwind.”
Other research analysts also recently issued reports about the company. ValuEngine raised ABM Industries from a strong sell rating to a sell rating in a research note on Thursday, July 12th. Robert W. Baird downgraded ABM Industries from an outperform rating to a neutral rating and upped their price target for the stock from $36.00 to $40.00 in a research note on Thursday, August 23rd. They noted that the move was a valuation call.
ABM Industries (NYSE:ABM) last announced its quarterly earnings data on Thursday, September 6th. The business services provider reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.04. The company had revenue of $1.62 billion for the quarter, compared to the consensus estimate of $1.65 billion. ABM Industries had a return on equity of 7.75% and a net margin of 1.34%. The firm’s revenue was up 23.2% compared to the same quarter last year. During the same period in the previous year, the business earned $0.51 EPS. equities research analysts forecast that ABM Industries will post 1.88 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, November 5th. Investors of record on Thursday, October 4th will be paid a dividend of $0.175 per share. This represents a $0.70 dividend on an annualized basis and a yield of 2.02%. The ex-dividend date is Wednesday, October 3rd. ABM Industries’s dividend payout ratio (DPR) is currently 40.00%.
In related news, insider Scott B. Salmirs sold 6,239 shares of the company’s stock in a transaction that occurred on Wednesday, September 12th. The stock was sold at an average price of $33.98, for a total transaction of $212,001.22. Following the transaction, the insider now directly owns 120,693 shares of the company’s stock, valued at approximately $4,101,148.14. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, SVP Dean A. Chin sold 5,682 shares of the company’s stock in a transaction that occurred on Friday, September 7th. The stock was sold at an average price of $33.60, for a total value of $190,915.20. Following the transaction, the senior vice president now directly owns 32,847 shares in the company, valued at $1,103,659.20. The disclosure for this sale can be found here. 1.30% of the stock is currently owned by corporate insiders.
Hedge funds have recently bought and sold shares of the stock. CIBC Private Wealth Group LLC raised its stake in ABM Industries by 44.6% during the 2nd quarter. CIBC Private Wealth Group LLC now owns 26,262 shares of the business services provider’s stock worth $767,000 after buying an additional 8,100 shares during the period. Personal Capital Advisors Corp raised its stake in ABM Industries by 40.8% during the 2nd quarter. Personal Capital Advisors Corp now owns 114,297 shares of the business services provider’s stock worth $3,335,000 after buying an additional 33,136 shares during the period. Pinebridge Investments L.P. raised its stake in ABM Industries by 21.8% during the 2nd quarter. Pinebridge Investments L.P. now owns 96,419 shares of the business services provider’s stock worth $2,813,000 after buying an additional 17,227 shares during the period. Ridgewood Investments LLC acquired a new position in ABM Industries during the 2nd quarter worth approximately $292,000. Finally, Investment Counselors of Maryland LLC bought a new stake in ABM Industries during the 2nd quarter worth approximately $15,534,000.
About ABM Industries
ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through five segments: Business & Industry, Aviation, Emerging Industries Group, Technical Solutions, and GCA Services. It offers janitorial, facilities engineering, parking, passenger assistance, catering, air cabin maintenance, transportation, and specialized mechanical and electrical services.
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