Strs Ohio Makes New Investment in ABM Industries Incorporated $ABM

Key Points

• Strs Ohio acquired a new stake in ABM Industries, purchasing 21,200 shares valued at approximately $1,004,000, highlighting ongoing interest from institutional investors.
• ABM Industries missed earnings estimates with $0.82 per share against a $0.95 forecast, despite reporting a year-over-year revenue increase of 6.2%.
• The company has approved a $150 million stock buyback plan, indicating the board's belief that the stock is undervalued, alongside a quarterly dividend of $0.265 per share.

Strs Ohio purchased a new position in shares of ABM Industries Incorporated (NYSE:ABM - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 21,200 shares of the business services provider's stock, valued at approximately $1,004,000.

A number of other large investors also recently modified their holdings of the company. Royal Bank of Canada lifted its stake in shares of 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 worth $4,100,000 after acquiring an additional 312 shares during the last quarter. HighTower Advisors LLC lifted its position in ABM Industries by 1.8% in the first quarter. HighTower Advisors LLC now owns 20,398 shares of the business services provider's stock valued at $966,000 after buying an additional 362 shares during the last quarter. Cetera Investment Advisers boosted its stake in shares of ABM Industries by 6.3% in the 1st quarter. Cetera Investment Advisers now owns 7,264 shares of the business services provider's stock valued at $344,000 after buying an additional 430 shares during the period. Palouse Capital Management Inc. increased its position in ABM Industries by 17.4% in the 1st quarter. Palouse Capital Management Inc. now owns 3,016 shares of the business services provider's stock valued at $143,000 after acquiring an additional 446 shares during the period. Finally, Federated Hermes Inc. grew its stake in ABM Industries by 107.7% in the 1st quarter. Federated Hermes Inc. now owns 920 shares of the business services provider's stock valued at $44,000 after acquiring an additional 477 shares during the last quarter. 91.62% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ABM. Truist Financial raised ABM Industries from a "hold" rating to a "buy" rating and lifted their price target for the stock from $55.00 to $58.00 in a research note on Wednesday, July 2nd. UBS Group lifted their price target on ABM Industries from $54.00 to $55.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Wall Street Zen downgraded ABM Industries from a "buy" rating to a "hold" rating in a report on Saturday, July 26th. Baird R W cut ABM Industries from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 8th. Finally, Robert W. Baird restated a "neutral" rating and set a $54.00 price objective (down previously from $56.00) on shares of ABM Industries in a research report on Monday, September 8th. Two research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, ABM Industries currently has an average rating of "Moderate Buy" and an average target price of $55.67.

ABM Industries Stock Performance

ABM traded down $0.63 during midday trading on Friday, reaching $44.99. The company's stock had a trading volume of 1,454,304 shares, compared to its average volume of 664,067. ABM Industries Incorporated has a twelve month low of $40.85 and a twelve month high of $59.15. The stock has a market cap of $2.75 billion, a P/E ratio of 24.45 and a beta of 0.80. The company has a fifty day simple moving average of $47.57 and a 200 day simple moving average of $47.97. The company has a current ratio of 1.49, a quick ratio of 1.49 and a debt-to-equity ratio of 0.82.

ABM Industries (NYSE:ABM - Get Free Report) last posted its quarterly earnings data 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 during the quarter, compared to analyst estimates of $2.16 billion. During the same quarter in the previous year, the business posted $0.94 EPS. The company's revenue was up 6.2% compared to the same quarter last year. ABM Industries has set its FY 2025 guidance at 3.650-3.650 EPS. Research analysts expect that ABM Industries Incorporated will post 3.71 earnings per share for the current year.

ABM Industries Announces Dividend

The firm 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 $0.265 dividend. This represents a $1.06 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Thursday, October 2nd. ABM Industries's dividend payout ratio (DPR) is currently 57.61%.

ABM Industries declared that its Board of Directors has approved a stock repurchase program on Friday, September 5th that authorizes the company to repurchase $150.00 million in shares. This repurchase authorization authorizes the business services provider to buy up to 5% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company's leadership believes its shares are undervalued.

Insider Activity at ABM Industries

In related news, COO Rene Jacobsen sold 17,250 shares of the stock in a transaction that occurred on Monday, July 7th. The shares were sold at an average price of $48.03, for a total value of $828,517.50. Following the completion of the transaction, the chief operating officer owned 71,256 shares of the company's stock, valued at $3,422,425.68. This represents a 19.49% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Company insiders own 0.90% 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.