Robert W. Baird Reaffirms Neutral Rating for ABM Industries (NYSE:ABM)

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 restated by stock analysts at Robert W. Baird in a note issued to investors on Monday, Marketbeat Ratings reports. They currently have a $54.00 price objective on the business services provider's stock, down from their prior price objective of $56.00. Robert W. Baird's price target suggests a potential upside of 11.88% from the stock's current price.

A number of other research analysts have also issued reports on ABM. Wall Street Zen lowered shares of ABM Industries from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Baird R W upgraded shares of ABM Industries from a "hold" rating to a "strong-buy" rating in a research report on Monday, June 9th. UBS Group upgraded shares of ABM Industries from a "neutral" rating to a "buy" rating and upped their target price for the stock from $50.00 to $54.00 in a research report on Monday, June 9th. Finally, Truist Financial upgraded 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 research report on Wednesday, July 2nd. One research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average target price of $55.67.

ABM Industries Trading Up 0.3%

Shares of ABM Industries stock opened at $48.27 on Monday. ABM Industries has a 1 year low of $40.85 and a 1 year high of $59.78. The company has a debt-to-equity ratio of 0.82, a quick ratio of 1.55 and a current ratio of 1.49. The company has a market capitalization of $3.01 billion, a P/E ratio of 26.23 and a beta of 0.80. The company's fifty day moving average is $48.06 and its two-hundred day moving average is $48.46.

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 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 firm had revenue of $2.22 billion during the quarter, compared to analysts' expectations of $2.16 billion. During the same period in the previous year, the firm 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. Analysts forecast that ABM Industries will post 3.71 earnings per share for the current year.

ABM Industries announced that its Board of Directors has initiated a stock repurchase 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 buy up to 5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its shares are undervalued.

Insider Activity

In other ABM Industries news, COO Rene Jacobsen sold 17,250 shares of the company's stock in a transaction dated Monday, July 7th. The shares were sold at an average price of $48.03, for a total value of $828,517.50. Following the sale, 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Thomas M. Gartland sold 3,711 shares of the company's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $45.52, for a total transaction of $168,924.72. Following the completion of the sale, the director directly owned 30,958 shares in the company, valued at $1,409,208.16. This trade represents a 10.70% decrease in their position. The disclosure for this sale can be found here. 0.90% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On ABM Industries

Several institutional investors and hedge funds have recently modified their holdings of the company. Invesco Ltd. lifted its stake in shares of ABM Industries by 1.6% during the second quarter. Invesco Ltd. now owns 1,815,590 shares of the business services provider's stock valued at $85,714,000 after buying an additional 28,664 shares during the period. American Century Companies Inc. lifted its stake in shares of ABM Industries by 1.5% during the second quarter. American Century Companies Inc. now owns 1,615,135 shares of the business services provider's stock valued at $76,251,000 after buying an additional 24,638 shares during the period. Geode Capital Management LLC lifted its stake in shares of ABM Industries by 0.7% during the second quarter. Geode Capital Management LLC now owns 1,502,219 shares of the business services provider's stock valued at $70,928,000 after buying an additional 10,182 shares during the period. LSV Asset Management lifted its stake in shares of ABM Industries by 1.2% during the second quarter. LSV Asset Management now owns 1,402,702 shares of the business services provider's stock valued at $66,222,000 after buying an additional 16,530 shares during the period. Finally, Pzena Investment Management LLC lifted its stake in shares of ABM Industries by 13.5% during the second quarter. Pzena Investment Management LLC now owns 963,943 shares of the business services provider's stock valued at $45,508,000 after buying an additional 114,485 shares during the period. Hedge funds and other institutional investors own 91.62% 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.

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