ABM Industries’ (ABM) “Sell” Rating Reaffirmed at Zacks Investment Research

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ABM Industries (NYSE:ABM)‘s stock had its “sell” rating reiterated by Zacks Investment Research in a research report issued on Monday.

According to Zacks, “Shares of ABM Induistries have underperformed its industry's growth over the past year. Increasing expenses (due to expenses related to GCA-buyout and higher wage and overtime costs resulting from a tight labor market) has become a concern for ABM Industries as it is likely to weigh on its bottom line. A debt-laden balance sheet is another major headwind. Despite such negatives, ABM's strategy to grow through acquisitions while maintaining desirable profit margins have paid off with top line growth. The company has embarked on 2020 Vision that outlines its long-term vision for the next five years. Systematic and strategic plans of actions are likely to drive long-term profitable growth for ABM through an industry-based go-to-market approach. The company has been consistent in rewarding its shareholders. “

A number of other equities analysts also recently issued reports on the company. ValuEngine downgraded ABM Industries from a “hold” rating to a “sell” rating in a report on Thursday, September 27th. TheStreet upgraded ABM Industries from a “c+” rating to a “b-” rating in a report on Friday, September 14th. Finally, Robert W. Baird downgraded ABM Industries from an “outperform” rating to a “neutral” rating and increased their price objective for the stock from $36.00 to $40.00 in a report on Thursday, August 23rd. They noted that the move was a valuation call.

ABM traded down $1.29 during trading on Monday, reaching $30.62. The stock had a trading volume of 508,400 shares, compared to its average volume of 688,180. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.69. The company has a market cap of $2.10 billion, a price-to-earnings ratio of 17.50 and a beta of 0.71. ABM Industries has a one year low of $28.17 and a one year high of $44.70.

ABM Industries (NYSE:ABM) last posted its quarterly earnings data on Thursday, September 6th. The business services provider reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.04. The business had revenue of $1.62 billion during the quarter, compared to the consensus estimate of $1.65 billion. ABM Industries had a return on equity of 7.75% and a net margin of 1.34%. The firm’s quarterly revenue was up 23.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $0.51 earnings per share. On average, analysts predict that ABM Industries will post 1.88 EPS for the current year.

In other news, insider Scott B. Salmirs sold 6,239 shares of the stock in a transaction on Wednesday, September 12th. The stock was sold at an average price of $33.98, for a total value of $212,001.22. Following the sale, the insider now directly owns 120,693 shares of the company’s stock, valued at $4,101,148.14. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Dean A. Chin sold 2,018 shares of the stock in a transaction on Monday, October 15th. The stock was sold at an average price of $30.39, for a total value of $61,327.02. The disclosure for this sale can be found here. Over the last three months, insiders sold 13,939 shares of company stock worth $464,243. Insiders own 1.30% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NumerixS Investment Technologies Inc purchased a new stake in shares of ABM Industries in the second quarter worth $149,000. SG Americas Securities LLC grew its stake in shares of ABM Industries by 51.9% in the second quarter. SG Americas Securities LLC now owns 5,490 shares of the business services provider’s stock worth $160,000 after acquiring an additional 1,875 shares during the last quarter. Nisa Investment Advisors LLC grew its stake in shares of ABM Industries by 71.8% in the third quarter. Nisa Investment Advisors LLC now owns 6,870 shares of the business services provider’s stock worth $222,000 after acquiring an additional 2,871 shares during the last quarter. Palouse Capital Management Inc. purchased a new stake in shares of ABM Industries in the second quarter worth $245,000. Finally, Burney Co. grew its stake in shares of ABM Industries by 25.5% in the second quarter. Burney Co. now owns 8,629 shares of the business services provider’s stock worth $252,000 after acquiring an additional 1,754 shares during the last quarter.

ABM Industries Company Profile

ABM Industries Incorporated provides integrated facility solutions in the United States and internationally. The company operates through Business & Industry, Aviation, Technology & Manufacturing, Education, Technical Solutions, and Healthcare segments. It offers janitorial, electrical and lighting, energy solutions, facilities engineering, HVAC and mechanical, landscape and turf, mission critical solutions, and parking.

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