William Blair Investment Management LLC Cuts Stake in ABM Industries Incorporated $ABM

Key Points

• William Blair Investment Management LLC reduced its stake in ABM Industries by 7.5%, owning approximately 723,712 shares valued at $34.17 million after selling 59,098 shares in the second quarter.
• ABM Industries reported earnings of $0.82 per share for the quarter, missing estimates by $0.13, although revenue increased by 6.2% year-over-year to $2.22 billion.
• The company has announced a quarterly dividend of $0.265 per share, with a dividend yield of 2.4%, and authorized a stock buyback plan worth $150 million.

William Blair Investment Management LLC cut its holdings in shares of ABM Industries Incorporated (NYSE:ABM - Free Report) by 7.5% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 723,712 shares of the business services provider's stock after selling 59,098 shares during the quarter. William Blair Investment Management LLC owned approximately 1.16% of ABM Industries worth $34,166,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently modified their holdings of ABM. Summit Securities Group LLC bought a new position in shares of ABM Industries in the first quarter worth approximately $38,000. Federated Hermes Inc. boosted its stake in shares of ABM Industries by 107.7% during the first 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. Caitong International Asset Management Co. Ltd purchased a new stake in shares of ABM Industries during the first quarter valued at approximately $45,000. Kiker Wealth Management LLC purchased a new stake in shares of ABM Industries during the second quarter valued at approximately $61,000. Finally, Virtus Advisers LLC purchased a new stake in ABM Industries in the first quarter worth $64,000. 91.62% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

ABM has been the subject of a number of research analyst reports. Robert W. Baird reaffirmed a "neutral" rating and issued a $54.00 price target (down previously from $56.00) on shares of ABM Industries in a research note on Monday, September 8th. Baird R W downgraded ABM Industries from a "strong-buy" rating to a "hold" rating in a report on Monday, September 8th. Truist Financial upgraded ABM Industries from a "hold" rating to a "buy" rating and lifted their price objective for the stock from $55.00 to $58.00 in a report on Wednesday, July 2nd. Wall Street Zen upgraded ABM Industries from a "hold" rating to a "buy" rating in a report on Saturday, October 4th. Finally, UBS Group raised their target price on ABM Industries from $54.00 to $55.00 and gave the stock a "buy" rating in a research report on Monday, September 8th. Two research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $55.67.

ABM Industries Stock Up 0.6%

Shares of ABM opened at $44.95 on Friday. The business's 50 day moving average is $46.82 and its 200 day moving average is $47.58. The company has a market capitalization of $2.75 billion, a PE ratio of 24.43 and a beta of 0.78. ABM Industries Incorporated has a 12-month low of $40.85 and a 12-month high of $59.15. 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 issued its earnings results on Friday, September 5th. The business services provider reported $0.82 earnings per share (EPS) 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 business had revenue of $2.22 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same period last year, the business posted $0.94 EPS. The firm's revenue for the quarter 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 fiscal year.

ABM Industries Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, November 3rd. Stockholders of record on Thursday, October 2nd will be given a dividend of $0.265 per share. The ex-dividend date of this dividend is Thursday, October 2nd. This represents a $1.06 annualized dividend and a dividend yield of 2.4%. ABM Industries's payout ratio is currently 57.61%.

ABM Industries declared that its board has authorized a stock buyback plan on Friday, September 5th that authorizes the company to buyback $150.00 million in outstanding shares. This buyback authorization authorizes the business services provider to reacquire up to 5% of its shares through open market purchases. Shares buyback plans are often an indication that the company's board believes its stock is undervalued.

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.

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