ABM Industries (NYSE:ABM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Tuesday. The brokerage currently has a $40.00 price objective on the business services provider’s stock. Zacks Investment Research‘s price objective points to a potential upside of 13.35% from the company’s previous close.
According to Zacks, “ABM has developed a platform to deliver an end-to-end service model to its clients by realigning its operational structure to an on-site, mobile and on-demand market based structure. This realignment has improved its long-term growth prospects and has provided higher margin opportunities by enabling it to better deliver end-to-end services to its clients. 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. However, 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.”
Separately, TheStreet lowered ABM Industries from a “b” rating to a “c+” rating in a report on Friday, December 29th. Four investment analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $47.50.
ABM Industries (NYSE:ABM) last announced its earnings results on Wednesday, December 13th. The business services provider reported $0.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by ($0.12). ABM Industries had a net margin of 0.07% and a return on equity of 9.74%. The business had revenue of $1.50 billion for the quarter, compared to analysts’ expectations of $1.49 billion. During the same quarter last year, the business earned $0.51 EPS. The company’s quarterly revenue was up 13.3% on a year-over-year basis. analysts forecast that ABM Industries will post 2.1 earnings per share for the current year.
In other ABM Industries news, Director Linda Chavez sold 2,103 shares of the firm’s stock in a transaction on Friday, January 12th. The stock was sold at an average price of $38.89, for a total value of $81,785.67. Following the transaction, the director now owns 16,557 shares in the company, valued at approximately $643,901.73. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 0.81% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the business. Renaissance Technologies LLC increased its stake in shares of ABM Industries by 100.1% in the 4th quarter. Renaissance Technologies LLC now owns 143,500 shares of the business services provider’s stock worth $5,413,000 after acquiring an additional 71,800 shares during the last quarter. Alliancebernstein L.P. increased its stake in shares of ABM Industries by 0.4% in the 4th quarter. Alliancebernstein L.P. now owns 1,526,647 shares of the business services provider’s stock worth $57,585,000 after acquiring an additional 5,856 shares during the last quarter. Channing Capital Management LLC increased its stake in shares of ABM Industries by 25.2% in the 4th quarter. Channing Capital Management LLC now owns 1,833,221 shares of the business services provider’s stock worth $69,149,000 after acquiring an additional 369,363 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of ABM Industries by 0.3% in the 4th quarter. Geode Capital Management LLC now owns 465,438 shares of the business services provider’s stock worth $17,556,000 after acquiring an additional 1,558 shares during the last quarter. Finally, Burney Co. increased its stake in shares of ABM Industries by 25.5% in the 4th quarter. Burney Co. now owns 8,629 shares of the business services provider’s stock worth $325,000 after acquiring an additional 1,754 shares during the last quarter. Institutional investors own 95.02% of the company’s stock.
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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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