Zacks Investment Research Lowers ABM Industries (ABM) to Sell

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ABM Industries (NYSE:ABM) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “ABM Industries continues to grapple with a difficult labor environment that is likely to persist through 2019. Increasing expenses are likely to weigh on ABM Industries bottom line. High debt may limit the company’s future expansion and worsen its risk profile. On the flip side, the company has embarked on its 2020 Vision that outlines its vision for the next five years. These systematic and strategic plans of actions are likely to drive long-term profitable growth for ABM through an industry-based go-to-market approach. ABM’s strategy entails growth through strategic acquisitions while maintaining desirable profit margins. The company is consistent in rewarding its shareholders. In the past six months, the stock has outperformed its industry.”

A number of other research analysts also recently commented on ABM. Robert W. Baird dropped their price objective on shares of ABM Industries from $35.00 to $31.00 and set a “neutral” rating for the company in a research note on Wednesday, December 19th. CL King downgraded shares of ABM Industries from a “buy” rating to a “neutral” rating in a research report on Friday, January 11th. TheStreet raised shares of ABM Industries from a “c+” rating to a “b-” rating in a research report on Wednesday, January 16th. Maxim Group started coverage on shares of ABM Industries in a research report on Thursday, February 14th. They set a “buy” rating and a $45.00 target price for the company. Finally, KeyCorp started coverage on shares of ABM Industries in a research report on Friday, April 5th. They set a “sector weight” rating and a $36.83 target price for the company. Two analysts have rated the stock with a sell rating, three have given a hold rating and two have assigned a buy rating to the stock. ABM Industries presently has a consensus rating of “Hold” and an average price target of $40.46.

Shares of NYSE ABM traded up $0.41 on Wednesday, reaching $37.57. 2,864 shares of the company traded hands, compared to its average volume of 410,259. ABM Industries has a fifty-two week low of $25.64 and a fifty-two week high of $37.77. The company has a debt-to-equity ratio of 0.65, a current ratio of 1.54 and a quick ratio of 1.54. The company has a market cap of $2.48 billion, a P/E ratio of 19.88 and a beta of 0.56.

ABM Industries (NYSE:ABM) last posted its quarterly earnings data on Wednesday, March 6th. The business services provider reported $0.31 EPS for the quarter, beating the Zacks’ consensus estimate of $0.27 by $0.04. ABM Industries had a net margin of 1.28% and a return on equity of 8.87%. The company had revenue of $1.61 billion during the quarter, compared to the consensus estimate of $1.61 billion. During the same quarter in the prior year, the company posted $0.26 EPS. The company’s quarterly revenue was up 1.2% compared to the same quarter last year. As a group, equities research analysts anticipate that ABM Industries will post 1.95 EPS for the current year.

In other news, COO Scott J. Giacobbe sold 7,143 shares of the stock in a transaction that occurred on Monday, April 1st. The stock was sold at an average price of $36.90, for a total transaction of $263,576.70. Following the completion of the transaction, the chief operating officer now directly owns 76,545 shares in the company, valued at approximately $2,824,510.50. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CFO Diego Anthony Scaglione sold 2,856 shares of the stock in a transaction that occurred on Monday, February 25th. The shares were sold at an average price of $37.31, for a total value of $106,557.36. Following the transaction, the chief financial officer now owns 62,043 shares of the company’s stock, valued at $2,314,824.33. The disclosure for this sale can be found here. In the last 90 days, insiders sold 12,856 shares of company stock valued at $473,872. 0.94% of the stock is owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in the company. State of Alaska Department of Revenue lifted its stake in ABM Industries by 1.4% during the first quarter. State of Alaska Department of Revenue now owns 22,315 shares of the business services provider’s stock worth $811,000 after purchasing an additional 310 shares during the last quarter. BMT Investment Advisors lifted its stake in ABM Industries by 3.3% during the first quarter. BMT Investment Advisors now owns 63,074 shares of the business services provider’s stock worth $2,293,000 after purchasing an additional 2,000 shares during the last quarter. Liberty Wealth Management LLC bought a new position in ABM Industries during the fourth quarter worth $288,000. Geode Capital Management LLC lifted its stake in ABM Industries by 7.4% during the fourth quarter. Geode Capital Management LLC now owns 700,426 shares of the business services provider’s stock worth $22,490,000 after purchasing an additional 47,990 shares during the last quarter. Finally, Norges Bank bought a new position in ABM Industries during the fourth quarter worth $13,541,000.

About ABM Industries

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

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