ABM Industries (NYSE:ABM) Shares Gap Up Following Dividend Announcement

ABM Industries Incorporated (NYSE:ABM) shares gapped up prior to trading on Wednesday after the company announced a dividend. The stock had previously closed at $45.74, but opened at $47.78. ABM Industries shares last traded at $48.3390, with a volume of 200,359 shares.

The newly announced dividend which will be paid on Monday, February 2nd. Investors of record on Wednesday, January 14th will be paid a $0.29 dividend. This is a positive change from ABM Industries’s previous quarterly dividend of $0.27. This represents a $1.16 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend is Wednesday, January 14th. ABM Industries’s payout ratio is presently 40.93%.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on ABM. Weiss Ratings reissued a “hold (c)” rating on shares of ABM Industries in a research note on Wednesday, October 8th. UBS Group reiterated a “neutral” rating and issued a $51.00 target price (down from $55.00) on shares of ABM Industries in a report on Thursday. Robert W. Baird restated a “neutral” rating and set a $54.00 price target (down from $56.00) on shares of ABM Industries in a report on Monday, September 8th. Baird R W downgraded shares of ABM Industries from a “strong-buy” rating to a “hold” rating in a research report on Monday, September 8th. Finally, Wall Street Zen lowered shares of ABM Industries from a “buy” rating to a “hold” rating in a research note on Saturday, December 13th. One investment analyst has rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to MarketBeat, ABM Industries presently has an average rating of “Hold” and a consensus target price of $54.33.

ABM Industries Trading Down 9.9%

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.48 and a quick ratio of 1.49. The firm has a fifty day simple moving average of $43.88 and a 200-day simple moving average of $46.05. The firm has a market cap of $2.66 billion, a P/E ratio of 16.78 and a beta of 0.74.

ABM Industries (NYSE:ABM) last posted its quarterly earnings results on Wednesday, December 17th. The business services provider reported $0.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.09 by ($0.21). ABM Industries had a net margin of 1.86% and a return on equity of 11.96%. The business had revenue of $2.30 billion during the quarter, compared to analyst estimates of $2.28 billion. During the same period in the previous year, the business posted $0.90 EPS. The business’s revenue for the quarter was up 5.4% compared to the same quarter last year. ABM Industries has set its FY 2026 guidance at 3.850-4.15 EPS. On average, equities research analysts expect that ABM Industries Incorporated will post 3.71 earnings per share for the current year.

ABM Industries declared that its board has authorized a share buyback plan on Friday, September 5th that authorizes the company to repurchase $150.00 million in outstanding shares. This repurchase authorization authorizes the business services provider to reacquire up to 5% of its stock through open market purchases. Stock repurchase plans are usually a sign that the company’s leadership believes its shares are undervalued.

Hedge Funds Weigh In On ABM Industries

Large investors have recently bought and sold shares of the stock. Nordea Investment Management AB raised its position in ABM Industries by 1,068.7% in the third quarter. Nordea Investment Management AB now owns 1,606,331 shares of the business services provider’s stock worth $73,297,000 after acquiring an additional 1,468,887 shares during the period. Ameriprise Financial Inc. lifted its position in shares of ABM Industries by 419.5% during the 3rd quarter. Ameriprise Financial Inc. now owns 1,111,320 shares of the business services provider’s stock valued at $51,254,000 after buying an additional 897,402 shares during the last quarter. Norges Bank bought a new position in shares of ABM Industries during the 2nd quarter worth $38,434,000. SG Capital Management LLC bought a new position in shares of ABM Industries during the 2nd quarter worth $29,064,000. Finally, Millennium Management LLC increased its holdings in ABM Industries by 883.5% in the 3rd quarter. Millennium Management LLC now owns 672,200 shares of the business services provider’s stock worth $31,002,000 after acquiring an additional 603,853 shares during the last quarter. 91.62% of the stock is currently owned by institutional investors.

ABM Industries Company Profile

ABM Industries Incorporated, through its subsidiaries, engages in the provision of integrated facility, infrastructure, and mobility solutions in the United States and internationally. It operates through Business & Industry, Manufacturing & Distribution, Education, Aviation, and Technical Solutions segments.