Andrea R. Newborn, the Executive Vice President, General Counsel, and Corporate Secretary of ABM Industries Inc . (NYSE:ABM), has sold shares worth approximately $567,675 in the company, according to a recent filing with the Securities and Exchange Commission. The transaction took place on May 1, 2024, with the executive offloading 12,615 shares at a price of $45.00 each.
The sale was conducted under a pre-arranged 10b5-1 trading plan, which allows insiders to establish a predetermined plan to buy or sell company stock. The plan was set up on January 11, 2024, ensuring that the sale was executed without any direct control by the insider over the timing of the transactions, thereby avoiding any potential misuse of material non-public information.
Following the transaction, Newborn still holds a substantial stake in the company, with 45,847 shares of ABM Industries remaining in her possession. The recent sale represents a partial divestment of her holdings but still leaves her with a significant investment in the company's future.
ABM Industries, a leading provider of facility solutions, has its shares traded on the New York Stock Exchange under the ticker symbol ABM. Investors often monitor insider transactions as they can provide insights into executives' perspectives on the company's performance and outlook.
The details of the sale, including the number of shares sold and the price per share, provide investors with a transparent view of executive movements within the company's stock. While the reasons for an insider's decision to sell shares can vary and are not always immediately clear, the disclosure of such transactions is a routine part of compliance with securities regulations.
InvestingPro Insights
As ABM Industries Inc. (NYSE:ABM) makes headlines with insider transactions, it's worth noting the company's strong financial metrics that might be influencing executive decisions. ABM boasts a robust Piotroski Score of 9, indicating a healthy financial state, and management has been actively enhancing shareholder value through aggressive share buybacks and a consistent dividend policy. In fact, ABM has not only raised its dividend for 3 consecutive years but has also maintained dividend payments for an impressive 54 years straight.
From a valuation perspective, ABM is trading at a P/E ratio of 11.38, which is considered low relative to its near-term earnings growth. This could signal an attractive entry point for investors looking for value stocks. Additionally, the company's shareholder yield is high, which is a composite metric that includes dividends, share repurchases, and debt reduction.
Investors considering ABM should note that the company's revenue for the last twelve months as of Q1 2024 stood at $8.174 billion USD, with a growth rate of 3.98%. Moreover, ABM's gross profit margin during the same period was 13.84%, which, despite being on the lower side, is balanced by the company's solid profitability and liquidity position. Specifically, ABM's liquid assets exceed its short-term obligations, providing financial flexibility.
For those interested in further insights, InvestingPro offers additional tips on ABM Industries, including analysis on price volatility, gross profit margins, and profitability predictions for this year. To explore these insights in detail, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. There are 11 more InvestingPro Tips available for ABM Industries, which can help investors make more informed decisions.
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