Wedge Capital Management L L P NC Acquires 6,764 Shares of ABM Industries Incorporated $ABM

Key Points

• Wedge Capital Management L L P NC increased its stake in ABM Industries by 16.1%, acquiring 6,764 additional shares, bringing its total holdings to 48,830 shares valued at approximately $2.3 million.
• ABM Industries recently announced a quarterly dividend of $0.265 per share, with a dividend yield of 2.4%, and plans to initiate a stock buyback program worth $150 million.
• Analysts have mixed ratings for ABM, with a consensus of Moderate Buy and an average price target of $55.67, reflecting a recent upgrade from Truist Financial.

Wedge Capital Management L L P NC grew its holdings in ABM Industries Incorporated (NYSE:ABM - Free Report) by 16.1% during the 2nd quarter, according to the company in its most recent disclosure with the SEC. The fund owned 48,830 shares of the business services provider's stock after purchasing an additional 6,764 shares during the quarter. Wedge Capital Management L L P NC owned about 0.08% of ABM Industries worth $2,305,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Invesco Ltd. raised its stake in ABM Industries by 17.8% in the first 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 1st 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 during the period. LSV Asset Management grew its position 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. Boston Partners increased its stake in ABM Industries by 2,129.6% in the 1st quarter. Boston Partners now owns 641,351 shares of the business services provider's stock worth $30,367,000 after purchasing an additional 612,586 shares during the period. Finally, Nuveen LLC bought a new stake in ABM Industries in the first quarter valued at $24,941,000. Institutional investors and hedge funds own 91.62% of the company's stock.

Analyst Ratings Changes

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

ABM Industries Trading Up 1.7%

ABM traded up $0.76 during trading on Monday, hitting $45.79. 690,344 shares of the company's stock were exchanged, compared to its average volume of 710,056. 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 Incorporated has a 1 year low of $40.85 and a 1 year high of $59.15. The stock has a 50 day moving average price of $47.50 and a 200 day moving average price of $47.88. The firm has a market cap of $2.80 billion, a P/E ratio of 24.89 and a beta of 0.80.

ABM Industries (NYSE:ABM - Get Free Report) last released its quarterly earnings data on Friday, September 5th. The business services provider reported $0.82 earnings per share for the quarter, missing analysts' consensus estimates of $0.95 by ($0.13). ABM Industries had a return on equity of 12.12% and a net margin of 1.34%.The firm had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.16 billion. During the same period last year, the business earned $0.94 EPS. The firm's 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, analysts expect that ABM Industries Incorporated will post 3.71 EPS for the current fiscal year.

ABM Industries Announces Dividend

The business also recently disclosed 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 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Thursday, October 2nd. ABM Industries's payout ratio is currently 57.61%.

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

Insider Activity

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 transaction of $828,517.50. Following the sale, the chief operating officer 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.90% of the stock is currently owned by insiders.

ABM Industries 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.