ABM Industries Inc. (ABM) shares fall following downgrade at Sidoti

ABM Industries Inc. (NYSE: ABM) shares fell on Thursday Nov 17 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.

Meanwhile, stocks opened flat this morning, struggling for direction in early trade ahead of congressional testimony by Federal Reserve Chairwoman Janet Yellen. Ahead of an appearance before the Joint Economic Committee, Yellen said an interest-rate hike could come “relatively soon,”

The S&P 500 SPX, +0.25% fell less than 0.1% to 2,176.85 while Dow Industrials DJIA, -0.05% fell 9 points to 18,858. The Nasdaq Composite COMP, +0.18% declined 0.1% to 5,291.48.

Shares of ABM Industries Inc. (NYSE: ABM) were downgraded by analysts at Sidoti in a note to their investors today. With a rating of Neutral on the shares, ABM Industries Inc. has a 52-week high of $43.71. As a means of comparison, a number of other analysts have issued reports on the company in recent days, and ABM Industries Inc. has secured a consensus one-year price target of $41.80, less than the opening price of $42.43. Downgrades are more likely when analysts consider that the future prospects for the security have diminished from the original recommendation, usually because of a material and integral digression in the company’s actions, future direction or industry.

Shares of ABM Industries Inc. (NYSE: ABM) opened at $42.43 on Monday trading between $42.40 and $42.56, and last traded at $42.45, which represents a decrease of $0.07 per share or -0.16% over the previous closing price.

ABM Industries Inc. (NYSE: ABM) currently has a market cap of 2.37B.

ABM Industries Inc. (NYSE: ABM) Average Daily Trading Volume

23,856 shares crossed the trading desk yesterday, lower than normal, out of a total float 52,786,000. Investors often use increases in trading volume to determine large volume accumulation or circulation by institutional investors, so look for trading volume to pick up in the coming days.

However, one day of significant buy side trading is not enough to determine a trend. As such, market traders will continue to look for institutional sponsorship as an indicator that financial institutions are moving forward.

Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.

These instituitional investors have substantial teams of analysts researching thousands of stocks. So watching their interests is a good way to make sure you are buying the right stocks.

ABM Industries Inc. (NYSE: ABM) Moving Averages

A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.

This is because the average acts like a floor (support), so the price bounces up off of it.

In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.

Traders can make more useful decisions on trades when they track the activity of professional investors.

Trades for ABM Industries Inc. (NYSE: ABM) have ranged from $26.50 – 43.71, and the stock now has a 50-day MA of $39.22 and 200-day MA of $37.20. Today’s last price is 2.88%% lower than the 52 week high of $43.71.

Earnings growth is a critical factor to research when buying stocks and investors identify companies that have grown their earnings at least 25% or more over 3 consecutive years.

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