Jacobs Levy Equity Management Inc. Takes Position in ABM Industries Incorporated $ABM

Key Points

• Jacobs Levy Equity Management Inc. has invested $5.81 million in ABM Industries, acquiring approximately 122,764 shares, representing about 0.20% of the company's stock.
• ABM Industries reported revenue of $2.22 billion for the quarter, exceeding analyst estimates, but the earnings per share (EPS) of $0.82 fell short of the expected $0.95.
• The company has authorized a $150 million stock buyback program and declared a quarterly dividend of $0.265 per share, reflecting a dividend yield of 2.3%.

Jacobs Levy Equity Management Inc. bought a new stake in shares of ABM Industries Incorporated (NYSE:ABM - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 122,764 shares of the business services provider's stock, valued at approximately $5,814,000. Jacobs Levy Equity Management Inc. owned 0.20% of ABM Industries at the end of the most recent quarter.

A number of other large investors also recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its position in ABM Industries by 0.4% during the 1st quarter. Royal Bank of Canada now owns 86,571 shares of the business services provider's stock valued at $4,100,000 after purchasing an additional 312 shares during the period. HighTower Advisors LLC lifted its position in ABM Industries by 1.8% during the 1st quarter. HighTower Advisors LLC now owns 20,398 shares of the business services provider's stock valued at $966,000 after purchasing an additional 362 shares during the period. Cetera Investment Advisers lifted its position in ABM Industries by 6.3% during the 1st quarter. Cetera Investment Advisers now owns 7,264 shares of the business services provider's stock valued at $344,000 after purchasing an additional 430 shares during the period. Palouse Capital Management Inc. lifted its position in ABM Industries by 17.4% during the 1st quarter. Palouse Capital Management Inc. now owns 3,016 shares of the business services provider's stock valued at $143,000 after purchasing an additional 446 shares during the period. Finally, Federated Hermes Inc. lifted its position in ABM Industries by 107.7% during the 1st quarter. Federated Hermes Inc. now owns 920 shares of the business services provider's stock valued at $44,000 after purchasing an additional 477 shares during the period. 91.62% of the stock is currently owned by institutional investors and hedge funds.

ABM Industries Stock Down 2.2%

ABM stock traded down $1.04 during mid-day trading on Friday, hitting $45.79. 500,375 shares of the company were exchanged, compared to its average volume of 634,680. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.49 and a current ratio of 1.49. The firm has a market cap of $2.80 billion, a P/E ratio of 24.88 and a beta of 0.80. The firm's 50 day simple moving average is $47.91 and its 200 day simple moving average is $48.21. ABM Industries Incorporated has a 1-year low of $40.85 and a 1-year high of $59.15.

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

ABM Industries announced that its board has initiated a share buyback plan 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 plans are typically a sign that the company's leadership believes its shares are undervalued.

ABM Industries Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Shareholders of record on Thursday, October 2nd will be issued a dividend of $0.265 per share. This represents a $1.06 annualized dividend and a yield of 2.3%. The ex-dividend date is Thursday, October 2nd. ABM Industries's dividend payout ratio (DPR) is 57.61%.

Insider Buying and Selling

In other ABM Industries news, COO Rene Jacobsen sold 17,250 shares of the firm's stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $48.03, for a total transaction of $828,517.50. Following the sale, the chief operating officer directly owned 71,256 shares in the company, valued at approximately $3,422,425.68. This trade represents a 19.49% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.90% of the company's stock.

Analyst Upgrades and Downgrades

ABM has been the topic of a number of analyst reports. 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. Truist Financial upgraded shares of ABM Industries from a "hold" rating to a "buy" rating and increased their price target for the company from $55.00 to $58.00 in a research report on Wednesday, July 2nd. Robert W. Baird reiterated a "neutral" rating and issued a $54.00 price target (down from $56.00) on shares of ABM Industries in a research report on Monday, September 8th. Wall Street Zen downgraded shares of ABM Industries from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. Finally, UBS Group increased their price target on shares of ABM Industries from $54.00 to $55.00 and gave the company a "buy" rating in a research report on Monday, September 8th. Two equities research 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 stock has an average rating of "Moderate Buy" and an average target price of $55.67.

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.