On April 26, 2023, Nisa Investment Advisors LLC revealed that it has increased its stake in ABM Industries Incorporated (NYSE:ABM) by a staggering 800% in the fourth quarter. The company now owns about 57,375 shares of the business service provider’s stock, which is estimated to be worth around $2.5 million, according to their latest SEC filing.
Nisa’s decision to acquire additional shares in ABM Industries demonstrates a strong vote of confidence in the company’s future growth prospects. It also indicates that they are optimistic about the long-term performance of the stocks they have invested in.
Meanwhile, it was recently reported that CAO Dean A. Chin had sold around 2,815 shares of ABM Industries’ stock at an average price of $47.86 per share. This translates to a total transaction amounting to $134,725.90. Following this sale, Chin currently holds approximately 19,735 shares of the business services provider’s stock.
The sale by Chin is not unusual as insiders commonly sell their shares from time to time for various reasons such as diversification and capital allocation planning.
Moreover, CEO Scott B. Salmirs sold 3,000 shares of ABM Industries’ stock at an average price of $45.07 per share on March 21st this year. Following this sale, he now directly holds around 371,743 ABM Industries’ stocks valued at roughly $16 million.
The recent increase in insider selling may indicate varying viewpoints among senior managers concerning further growth opportunities or economic uncertainty affecting business prospects.
ABM Industries’ current ratio and quick ratio stood at 1.30 each as of April 26th and a debt-to-equity ratio reported at .69 were slightly below market benchmarks for industrial service providers similar to its size.
NYSE:ABM opened trading with a price of $41.51 on April 26th, further indicating possible economic uncertainty in the market. However, ABM Industries has had a market capitalization of $2.74 billion and a PE ratio of 14.41, making it a potentially viable investment opportunity.
Overall, Nisa Investment Advisors LLC’s increased stake in ABM Industries Incorporated reconfirms investor confidence in the company’s potential for long-term growth despite recent insider sell-offs. The significance of these transactions remains to be seen but may serve as an indication of a planned shift in direction or execution strategy within the company.
Investment Changes and Insider Trading Surrounding ABM Industries Incorporated
ABM Industries Incorporated recently experienced changes in investment positions by various large investors. Wipfli Financial Advisors LLC purchased a new position worth $38,000 while Private Trust Co. NA made a similar move worth approximately $43,000. Assetmark Inc. raised its holdings in ABM Industries by a whopping 37.6% this year and now owns 1,309 shares of the company’s stock worth $50,000. The trend continued with McClarren Financial Advisors Inc., which also secured a new position in ABM Industries for about $59,000, and Tower Research Capital LLC TRC raising its holdings by 31.3% in the third quarter to now own 4,196 shares of ABM’s stock worth $161,000.
According to recent reports from equities analysts, StockNews.com gave ABM Industries a “hold” rating; Robert W. Baird downgraded it from “outperform” to “neutral” rating and slashed their target price for the stock from $52 to $51.
In terms of insider trading activity within the firm, Chief Accounting Officer Dean A. Chin sold 2,815 shares at an average price of $47.86 on February 13th for total proceeds of around $134,725 while CEO Scott B. Salmirs sold 3,000 shares at an average value of $45.07 on March 21st totaling out at roughly $135,210.
ABM Industries released their earnings report on Wednesday,March 8th reporting an impressive earnings per share (EPS) of about $0.79 which beat analysts’ consensus estimate by two cents ($0.77). The New York Stock Exchange-listed firm also had improved net margins compared to last year and reported revenue of around $1.99 billion during Q1 versus the forecasted value of approximately$2.02billion.
As part of the quarterly dividend, shareholders of ABM Industries will receive $0.22 per share on Monday, May 1st.Mr. Market is also predicting that ABM Industries Incorporated will post earnings of $3.49 share for the current year.
