ABM Industries (NYSE:ABM) Shares Gap Down on Disappointing Earnings

ABM Industries Incorporated (NYSE:ABM - Get Free Report) shares gapped down prior to trading on Friday following a dissappointing earnings announcement. 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.

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

ABM Industries Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, August 4th. Shareholders of record on Thursday, July 3rd will be issued a $0.265 dividend. The ex-dividend date is Thursday, July 3rd. This represents a $1.06 dividend on an annualized basis and a yield of 2.19%. ABM Industries's payout ratio is presently 84.13%.

Analyst Upgrades and Downgrades

ABM has been the subject of a number of recent research reports. UBS Group raised ABM Industries from a "neutral" rating to a "buy" rating and upped their target price for the stock from $50.00 to $54.00 in a report on Monday. Wall Street Zen cut ABM Industries from a "buy" rating to a "hold" rating in a report on Saturday, May 31st. Finally, Robert W. Baird raised ABM Industries from a "neutral" rating to an "outperform" rating and set a $56.00 target price for the company in a report on Monday.

Insider Activity

In other news, EVP Sean Michael Mahoney sold 574 shares of the stock in a transaction dated Monday, May 5th. The stock was sold at an average price of $50.06, for a total value of $28,734.44. Following the completion of the sale, the executive vice president now owns 49,225 shares of the company's stock, valued at approximately $2,464,203.50. This represents a 1.15% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, 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 value of $41,672.00. Following the completion of the sale, the chief executive officer now directly owns 418,856 shares of the company's stock, valued at approximately $21,818,209.04. The trade was a 0.19% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 52,374 shares of company stock valued at $2,733,303. Company insiders own 0.90% of the company's stock.

Institutional Investors Weigh In On ABM Industries

Several institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in shares of ABM Industries by 0.7% during the 4th quarter. Vanguard Group Inc. now owns 8,198,258 shares of the business services provider's stock valued at $419,587,000 after purchasing an additional 55,584 shares in the last quarter. Invesco Ltd. boosted its position in shares of ABM Industries by 17.8% during the 1st quarter. Invesco Ltd. now owns 1,786,926 shares of the business services provider's stock valued at $84,629,000 after purchasing an additional 269,410 shares in the last quarter. American Century Companies Inc. boosted its holdings in 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 worth $75,326,000 after acquiring an additional 406,802 shares in the last quarter. LSV Asset Management boosted its holdings in ABM Industries by 66.4% in the first quarter. LSV Asset Management now owns 1,386,172 shares of the business services provider's stock worth $65,649,000 after acquiring an additional 553,225 shares in the last quarter. Finally, Norges Bank bought a new position in ABM Industries in the fourth quarter worth approximately $43,967,000. Institutional investors own 91.62% of the company's stock.

ABM Industries Trading Up 3.7%

The firm has a fifty day simple moving average of $48.97 and a 200-day simple moving average of $51.15. The firm has a market cap of $3.01 billion, a P/E ratio of 38.06, a price-to-earnings-growth ratio of 2.75 and a beta of 0.83. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.33 and a quick ratio of 1.33.

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.