ABM Industries (NYSE:ABM) Given New $55.00 Price Target at UBS Group

Key Points

• UBS Group raised its price target for ABM Industries from $54.00 to $55.00, indicating a potential upside of 13.95% from the current stock price.
• Truist Financial upgraded ABM's rating from "hold" to "buy" and increased its price target to $58.00, while other firms have varied in their ratings between "buy," "hold," and "strong-buy."
• ABM Industries recently announced a share buyback plan for $150 million, representing a potential signal of company management's belief that the stock is undervalued.

ABM Industries (NYSE:ABM - Get Free Report) had its price target hoisted by stock analysts at UBS Group from $54.00 to $55.00 in a research note issued to investors on Monday,Benzinga reports. The brokerage currently has a "buy" rating on the business services provider's stock. UBS Group's target price suggests a potential upside of 20.13% from the company's previous close.

Several other equities research analysts also recently commented on ABM. Robert W. Baird reiterated a "neutral" rating and set a $54.00 price objective (down from $56.00) on shares of ABM Industries in a research note on Monday, September 8th. Truist Financial upgraded shares of 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 research note on Wednesday, July 2nd. Baird R W upgraded shares of ABM Industries from a "hold" rating to a "strong-buy" rating in a research note on Monday, June 9th. Finally, Wall Street Zen downgraded shares of ABM Industries from a "buy" rating to a "hold" rating in a research note on Saturday, July 26th. Two investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, ABM Industries currently has an average rating of "Moderate Buy" and a consensus target price of $55.67.

ABM Industries Stock Down 2.2%

ABM traded down $1.04 during trading on Monday, hitting $45.79. The stock had a trading volume of 500,375 shares, compared to its average volume of 636,784. ABM Industries has a twelve month low of $40.85 and a twelve month high of $59.15. The stock has a 50 day simple moving average of $47.91 and a two-hundred day simple moving average of $48.29. 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 $2.80 billion, a PE ratio of 24.88 and a beta of 0.80.

ABM Industries (NYSE:ABM - Get Free Report) last posted its quarterly earnings data on Friday, September 5th. The business services provider reported $0.82 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.13). ABM Industries had a return on equity of 12.12% and a net margin of 1.34%.The company had revenue of $2.22 billion for the quarter, compared to analyst estimates of $2.16 billion. During the same quarter in the previous year, the firm posted $0.94 earnings per share. The company's quarterly 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 earnings per share for the current year.

ABM Industries declared that its board has initiated a share repurchase plan on Friday, September 5th that allows the company to buyback $150.00 million in shares. This buyback authorization allows the business services provider to repurchase up to 5% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insiders Place Their Bets

In other ABM Industries news, COO Rene Jacobsen sold 17,250 shares of ABM Industries stock in a transaction 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 approximately $3,422,425.68. The trade was a 19.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Invesco Ltd. increased its holdings in ABM Industries by 1.6% in 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 in the last quarter. American Century Companies Inc. increased its holdings in ABM Industries by 1.5% in 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 in the last quarter. Geode Capital Management LLC increased its holdings in ABM Industries by 0.7% in 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 in the last quarter. LSV Asset Management increased its holdings in ABM Industries by 1.2% in 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 in the last quarter. Finally, Pzena Investment Management LLC increased its holdings in ABM Industries by 13.5% in 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 in the last quarter. 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.