ABM Industries (NYSE:ABM) Shares Gap Down After Earnings Miss

Shares of ABM Industries Incorporated (NYSE:ABM - Get Free Report) gapped down before the market opened on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $51.26, but opened at $48.46. ABM Industries shares last traded at $47.61, with a volume of 254,693 shares changing hands.

The business services provider reported $0.86 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.87 by ($0.01). ABM Industries had a net margin of 0.97% and a return on equity of 12.48%. The company had revenue of $2.11 billion during the quarter, compared to analyst estimates of $2.07 billion. During the same quarter in the previous year, the company posted $0.87 EPS. The company's quarterly revenue was up 4.6% on a year-over-year basis.

ABM Industries Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Monday, August 4th. Investors of record on Thursday, July 3rd will be paid a dividend of $0.265 per share. This represents a $1.06 dividend on an annualized basis and a yield of 2.23%. ABM Industries's dividend payout ratio is presently 84.13%.

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on ABM shares. Wall Street Zen lowered shares of ABM Industries from a "buy" rating to a "hold" rating in a research report on Saturday, May 31st. UBS Group dropped their price target on ABM Industries from $56.00 to $50.00 and set a "neutral" rating on the stock in a research report on Thursday, March 13th.

Insider Buying and Selling at ABM Industries

In other ABM Industries news, EVP Sean Michael Mahoney sold 574 shares of the business's stock in a transaction on Monday, May 5th. The shares were sold at an average price of $50.06, for a total transaction of $28,734.44. Following the sale, the executive vice president now directly owns 49,225 shares in the company, valued at approximately $2,464,203.50. The trade was a 1.15% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Scott B. Salmirs sold 800 shares of the stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $52.09, for a total transaction of $41,672.00. Following the completion of the transaction, the chief executive officer now owns 418,856 shares of the company's stock, valued at $21,818,209.04. This represents a 0.19% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 52,374 shares of company stock valued at $2,733,303. 0.90% of the stock is owned by company insiders.

Institutional Trading of ABM Industries

A number of institutional investors have recently added to or reduced their stakes in ABM. Vanguard Group Inc. grew its holdings in shares of ABM Industries by 0.7% in the 4th quarter. Vanguard Group Inc. now owns 8,198,258 shares of the business services provider's stock worth $419,587,000 after acquiring an additional 55,584 shares during the period. Invesco Ltd. raised its position in ABM Industries by 17.8% during the first quarter. Invesco Ltd. now owns 1,786,926 shares of the business services provider's stock worth $84,629,000 after acquiring an additional 269,410 shares during the last quarter. American Century Companies Inc. lifted its holdings in shares of ABM Industries by 34.4% in the first quarter. American Century Companies Inc. now owns 1,590,497 shares of the business services provider's stock valued at $75,326,000 after purchasing an additional 406,802 shares in the last quarter. LSV Asset Management increased its stake in shares of ABM Industries by 66.4% during the 1st quarter. LSV Asset Management now owns 1,386,172 shares of the business services provider's stock worth $65,649,000 after purchasing an additional 553,225 shares in the last quarter. Finally, Norges Bank acquired a new position in shares of ABM Industries during the 4th quarter worth approximately $43,967,000. Hedge funds and other institutional investors own 91.62% of the company's stock.

ABM Industries Trading Down 7.1%

The business has a 50 day moving average of $49.02 and a 200-day moving average of $51.34. The stock has a market cap of $2.96 billion, a PE ratio of 37.50, a price-to-earnings-growth ratio of 2.75 and a beta of 0.78. The company has a current ratio of 1.33, a quick ratio of 1.33 and a debt-to-equity ratio of 0.73.

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.

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