ABM Industries (NYSE:ABM) Rating Lowered to "Hold" at Baird R W

Key Points

• ABM Industries has been downgraded from a "strong-buy" to a "hold" rating by Baird R W, reflecting a cautious outlook on the stock.
• The company recently reported a quarterly EPS of $0.82, missing estimates, but had revenues of $2.22 billion, surpassing expectations with a 6.2% year-over-year growth.
• ABM Industries announced a $150 million stock repurchase plan, indicating that management believes its shares may be undervalued.

Baird R W downgraded shares of ABM Industries (NYSE:ABM - Free Report) from a strong-buy rating to a hold rating in a research report report published on Monday morning,Zacks.com reports.

Other equities analysts have also issued reports about the company. Wall Street Zen lowered ABM Industries from a "buy" rating to a "hold" rating in a report on Saturday, July 26th. Robert W. Baird restated a "neutral" rating and set a $54.00 target price (down from $56.00) on shares of ABM Industries in a report on Monday, September 8th. UBS Group raised their target price on ABM Industries from $54.00 to $55.00 and gave the company a "buy" rating in a report on Monday, September 8th. Finally, Truist Financial upgraded ABM Industries from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $55.00 to $58.00 in a research note on Wednesday, July 2nd. Two investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $55.67.

ABM Industries Stock Down 2.2%

NYSE ABM traded down $1.04 during trading on Monday, hitting $45.79. 500,375 shares of the company traded hands, compared to its average volume of 634,680. ABM Industries has a 12 month low of $40.85 and a 12 month high of $59.15. The business has a fifty day simple moving average of $47.91 and a 200 day simple moving average of $48.21. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 0.82. The company has a market capitalization of $2.80 billion, a P/E ratio of 24.88 and a beta of 0.80.

ABM Industries (NYSE:ABM - Get Free Report) last posted its earnings results on Friday, September 5th. The business services provider reported $0.82 earnings per share for the quarter, missing the consensus estimate of $0.95 by ($0.13). ABM Industries had a net margin of 1.34% and a return on equity of 12.12%. The company had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter last year, the business earned $0.94 earnings per share. ABM Industries's quarterly revenue was up 6.2% on a year-over-year basis. ABM Industries has set its FY 2025 guidance at 3.650-3.650 EPS. As a group, sell-side analysts predict that ABM Industries will post 3.71 EPS for the current year.

ABM Industries Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Thursday, October 2nd will be paid a $0.265 dividend. The ex-dividend date is Thursday, October 2nd. This represents a $1.06 dividend on an annualized basis and a dividend yield of 2.3%. ABM Industries's payout ratio is presently 57.61%.

ABM Industries declared that its board has approved a share repurchase program on Friday, September 5th that allows the company to repurchase $150.00 million in outstanding shares. This repurchase authorization allows the business services provider to purchase up to 5% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's board believes its stock is undervalued.

Insider Activity at ABM Industries

In other news, COO Rene Jacobsen sold 17,250 shares of ABM Industries stock in a transaction dated Monday, July 7th. The stock was sold at an average price of $48.03, for a total value of $828,517.50. Following the transaction, the chief operating officer directly owned 71,256 shares in the company, valued at approximately $3,422,425.68. The trade was a 19.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.90% of the company's stock.

Hedge Funds Weigh In On ABM Industries

Several large investors have recently added to or reduced their stakes in the company. Mercer Global Advisors Inc. ADV bought a new stake in shares of ABM Industries in the 4th quarter worth approximately $337,000. Bank of America Corp DE increased its position in shares of ABM Industries by 52.1% during the fourth quarter. Bank of America Corp DE now owns 677,811 shares of the business services provider's stock valued at $34,690,000 after purchasing an additional 232,190 shares during the period. Deutsche Bank AG increased its position in shares of ABM Industries by 40.8% during the fourth quarter. Deutsche Bank AG now owns 60,678 shares of the business services provider's stock valued at $3,106,000 after purchasing an additional 17,584 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of ABM Industries by 4.1% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 35,999 shares of the business services provider's stock valued at $1,842,000 after purchasing an additional 1,407 shares during the period. Finally, Nuveen Asset Management LLC increased its position in shares of ABM Industries by 99.2% during the fourth quarter. Nuveen Asset Management LLC now owns 671,266 shares of the business services provider's stock valued at $34,355,000 after purchasing an additional 334,295 shares during the period. Institutional investors and hedge funds own 91.62% of the company's stock.

About ABM Industries

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.