Ellis Earl Ray, Executive Vice President and Chief Financial Officer of ABM Industries Inc . (NYSE:ABM), recently sold a significant portion of his holdings in the company. According to a recent filing, Ray sold a total of 40,000 shares of common stock on October 14, 2024. The shares were sold at prices ranging from $53.8031 to $54.2829, amounting to a total transaction value of approximately $2.16 million.
These transactions were conducted under a Rule 10b5-1 trading plan, which Ray entered into on July 15, 2024. Following the sales, Ray retains ownership of 45,260 shares in ABM Industries. The sales were executed in multiple transactions, with the prices reflecting a weighted average across the trades.
In other recent news, ABM Industries has seen several significant developments. The company has successfully resolved a class action lawsuit, allowing it to focus on its core business operations. Also, Truist Securities and Baird have raised their price targets for ABM Industries following a strong fiscal third-quarter report and an upward revision of its full-year 2024 earnings per share (EPS) forecast. However, both firms maintain their respective Hold and Neutral ratings.
ABM Industries has also adjusted its full-year EPS guidance to a range of $3.48 to $3.55, indicating confidence in its continued growth trajectory. Despite this, Truist Securities maintains a cautious outlook, expecting only a modest EPS growth of about 3% for fiscal year 2025.
In addition to these financial developments, ABM Industries has been involved in a significant multi-year micro-grid project valued at $180 million, contributing to revenue growth in its Technical Solutions and Aviation segments. These recent developments highlight the company's ongoing financial performance and strategic initiatives.
InvestingPro Insights
While Ellis Earl Ray's recent stock sale might raise eyebrows, it's essential to consider ABM Industries' broader financial picture. According to InvestingPro data, ABM Industries boasts a market capitalization of $3.38 billion and a P/E ratio of 21.88, suggesting a moderate valuation relative to earnings. The company's revenue for the last twelve months as of Q3 2024 stood at $8.27 billion, with a modest growth of 3.25% year-over-year.
Notably, ABM Industries has maintained a strong track record of shareholder returns. An InvestingPro Tip highlights that the company has maintained dividend payments for an impressive 54 consecutive years, demonstrating a commitment to returning value to shareholders. This is further supported by a current dividend yield of 1.69% and a dividend growth rate of 2.27% over the last twelve months.
Another InvestingPro Tip reveals that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This action, combined with the consistent dividend history, may help offset concerns about insider selling.
Investors seeking a more comprehensive analysis can access additional insights through InvestingPro, which offers 7 more tips for ABM Industries, providing a deeper understanding of the company's financial health and market position.
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