ABM Industries' (ABM) Neutral Rating Reaffirmed at Robert W. Baird

Key Points

• Robert W. Baird has reaffirmed a neutral rating for ABM Industries and reduced their price target from $56.00 to $54.00, indicating an approximate 11.88% upside potential from the current stock price.
• ABM Industries reported $0.82 earnings per share for the last quarter, missing the consensus estimate of $0.95, while revenue increased by 6.2% year-over-year.
• The company has initiated a $150 million stock repurchase plan, allowing the repurchase of up to 5% of its shares, which generally reflects confidence in the stock's valuation.

ABM Industries (NYSE:ABM - Get Free Report)'s stock had its "neutral" rating reissued by stock analysts at Robert W. Baird in a research note issued on Monday, Marketbeat Ratings reports. They presently have a $54.00 price target on the business services provider's stock, down from their previous price target of $56.00. Robert W. Baird's price objective would suggest a potential upside of 17.94% from the stock's current price.

A number of other research firms have also weighed in on ABM. UBS Group raised shares of ABM Industries from a "neutral" rating to a "buy" rating and increased their price objective for the stock from $50.00 to $54.00 in a research report on Monday, June 9th. Baird R W raised shares of ABM Industries from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 9th. Wall Street Zen lowered shares of ABM Industries from a "buy" rating to a "hold" rating in a research report on Saturday, July 26th. Finally, Truist Financial raised shares of ABM Industries from a "hold" rating to a "buy" rating and raised their target price for the stock from $55.00 to $58.00 in a research report on Wednesday, July 2nd. Two analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $55.67.

ABM Industries Trading Down 2.2%

Shares of NYSE:ABM traded down $1.04 during trading on Monday, reaching $45.79. The company's stock had a trading volume of 500,375 shares, compared to its average volume of 636,784. The company has a current ratio of 1.49, a quick ratio of 1.55 and a debt-to-equity ratio of 0.82. ABM Industries has a 12 month low of $40.85 and a 12 month high of $59.15. The firm's 50 day simple moving average is $47.91 and its two-hundred day simple moving average is $48.29. The stock has a market capitalization of $2.80 billion, a PE ratio of 24.88 and a beta of 0.80.

ABM Industries (NYSE:ABM - Get Free Report) last announced its quarterly earnings results on Friday, September 5th. The business services provider reported $0.82 EPS for the quarter, missing analysts' consensus estimates 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 during the quarter, compared to the consensus estimate of $2.16 billion. During the same period in the previous year, the business posted $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. On average, research analysts predict that ABM Industries will post 3.71 EPS for the current fiscal year.

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

Insider Transactions at ABM Industries

In related news, COO Rene Jacobsen sold 17,250 shares of ABM Industries 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 transaction, the chief operating officer directly owned 71,256 shares of the company's stock, valued at $3,422,425.68. This trade represents a 19.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 0.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On ABM Industries

Institutional investors have recently bought and sold shares of the business. Summit Securities Group LLC purchased a new position in ABM Industries during the first quarter valued at approximately $38,000. Federated Hermes Inc. increased its holdings in 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 buying an additional 477 shares during the period. Caitong International Asset Management Co. Ltd purchased a new position in ABM Industries during the first quarter valued at approximately $45,000. Kiker Wealth Management LLC purchased a new position in ABM Industries during the second quarter valued at approximately $61,000. Finally, Virtus Advisers LLC purchased a new position in ABM Industries during the first quarter valued at approximately $64,000. 91.62% of the stock is owned by hedge funds and other institutional investors.

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.