ABM Industries (ABM) Rating Increased to Hold at Zacks Investment Research

ABM Industries (NYSE:ABM) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “ABM has underperformed the industry in the last three months due to macroeconomic concerns. Strong competitive pressures could limit ABM’s success rate in bidding for profitable businesses and its ability to increase prices in accordance with the rising costs. With the withdrawal of the United States from the Paris accord, the viability of energy-saving projects remains greatly at risk. In addition, catastrophic events like hurricane Harvey and Irma could have an adverse effect on these projects. However, ABM remains focused on driving sustainable profitability by effectively allocating resources to high margin services and business verticals with a strong competitive edge. The company further expects to extend its global footprint and strengthen its position in existing markets through both inorganic and organic growth. Management also reiterated that corporate restructuring initiatives were well on track to yield healthy growth momentum.”

Separately, TheStreet lowered shares of ABM Industries from a “b” rating to a “c+” rating in a report on Friday, December 29th. One investment analyst has rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. ABM Industries has an average rating of “Buy” and a consensus price target of $49.50.

ABM Industries (NYSE ABM) traded down $0.27 on Monday, hitting $39.50. 367,109 shares of the stock traded hands, compared to its average volume of 468,121. The company has a market cap of $2,605.50, a P/E ratio of 564.37 and a beta of 0.81. ABM Industries has a one year low of $36.61 and a one year high of $45.12. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.63 and a quick ratio of 1.63.

ABM Industries (NYSE:ABM) last released its earnings results on Wednesday, December 13th. The business services provider reported $0.37 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.49 by ($0.12). ABM Industries had a return on equity of 9.74% and a net margin of 0.07%. The company had revenue of $1.50 billion during the quarter, compared to the consensus estimate of $1.49 billion. During the same period in the previous year, the firm posted $0.51 EPS. ABM Industries’s revenue for the quarter was up 13.3% on a year-over-year basis. sell-side analysts expect that ABM Industries will post 1.9 earnings per share for the current year.

In other news, Director Linda Chavez sold 2,103 shares of ABM Industries stock in a transaction dated Friday, January 12th. The shares were sold at an average price of $38.89, for a total value of $81,785.67. Following the completion of the transaction, the director now directly owns 16,557 shares of the company’s stock, valued at approximately $643,901.73. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 1.30% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of ABM. Swiss National Bank boosted its holdings in shares of ABM Industries by 6.0% in the 2nd quarter. Swiss National Bank now owns 92,500 shares of the business services provider’s stock valued at $3,841,000 after buying an additional 5,200 shares during the period. Wells Fargo & Company MN boosted its stake in ABM Industries by 6.5% during the 2nd quarter. Wells Fargo & Company MN now owns 138,338 shares of the business services provider’s stock valued at $5,744,000 after purchasing an additional 8,386 shares during the period. Riverhead Capital Management LLC boosted its stake in ABM Industries by 60.4% during the 2nd quarter. Riverhead Capital Management LLC now owns 3,528 shares of the business services provider’s stock valued at $146,000 after purchasing an additional 1,328 shares during the period. Teachers Advisors LLC boosted its stake in ABM Industries by 21.7% during the 2nd quarter. Teachers Advisors LLC now owns 495,597 shares of the business services provider’s stock valued at $20,577,000 after purchasing an additional 88,478 shares during the period. Finally, TIAA CREF Investment Management LLC boosted its stake in ABM Industries by 10.0% during the 2nd quarter. TIAA CREF Investment Management LLC now owns 168,920 shares of the business services provider’s stock valued at $7,014,000 after purchasing an additional 15,384 shares during the period. 94.55% of the stock is owned by institutional investors and hedge funds.

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ABM Industries Company Profile

ABM Industries Incorporated is a provider of integrated facility solutions. The Company operates through five segments: Janitorial, Facility Services, Parking, Building & Energy Solutions, and other. Its Janitorial segment provides a range of cleaning services for commercial office buildings, data centers, educational institutions, government buildings, health facilities, industrial buildings, retail stores, sport event facilities and transportation hubs.

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