ABM Industries (NYSE:ABM) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Tuesday. The brokerage currently has a $40.00 target price on the business services provider’s stock. Zacks Investment Research‘s target price suggests a potential upside of 13.48% from the stock’s current price.

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 cut ABM Industries from a “b” rating to a “c+” rating in a research report on Friday, December 29th. Four research analysts have rated the stock with a buy rating and one has issued a strong buy rating to the company. ABM Industries currently has an average rating of “Buy” and an average price target of $47.50.

Shares of ABM Industries (ABM) traded down $0.20 on Tuesday, hitting $35.25. The stock had a trading volume of 109,240 shares, compared to its average volume of 497,270. ABM Industries has a 12-month low of $33.70 and a 12-month high of $45.12. The company has a market capitalization of $2,286.75, a PE ratio of 503.64 and a beta of 0.73. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.63 and a current ratio of 1.63.

ABM Industries (NYSE:ABM) last announced its quarterly 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 net margin of 0.07% and a return on equity of 9.74%. The company had revenue of $1.50 billion for the quarter, compared to the consensus estimate of $1.49 billion. During the same quarter in the prior year, the company earned $0.51 earnings per share. The company’s quarterly revenue was up 13.3% on a year-over-year basis. equities analysts expect that ABM Industries will post 2.1 earnings per share for the current year.

In related news, Director Linda Chavez sold 2,103 shares of the company’s stock in a transaction that occurred on Friday, January 12th. The shares were sold at an average price of $38.89, for a total value of $81,785.67. Following the transaction, the director now directly owns 16,557 shares in the company, valued at $643,901.73. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 0.81% of the stock is currently owned by corporate insiders.

Several hedge funds have recently bought and sold shares of ABM. Lee Thomas H Partners LP bought a new position in shares of ABM Industries in the third quarter worth approximately $188,691,000. Vaughan Nelson Investment Management L.P. increased its position in shares of ABM Industries by 65.7% in the third quarter. Vaughan Nelson Investment Management L.P. now owns 1,235,775 shares of the business services provider’s stock worth $51,544,000 after purchasing an additional 489,875 shares during the last quarter. Dalton Greiner Hartman Maher & Co. increased its position in shares of ABM Industries by 62.7% in the fourth quarter. Dalton Greiner Hartman Maher & Co. now owns 798,509 shares of the business services provider’s stock worth $30,120,000 after purchasing an additional 307,846 shares during the last quarter. Allianz Asset Management GmbH increased its position in shares of ABM Industries by 1,354.9% in the third quarter. Allianz Asset Management GmbH now owns 301,971 shares of the business services provider’s stock worth $12,595,000 after purchasing an additional 281,216 shares during the last quarter. Finally, Koch Industries Inc. bought a new position in shares of ABM Industries in the second quarter worth approximately $261,000. 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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