On Thursday, Houston-based Goodman Financial disclosed it had fully exited its position in ABM Industries (ABM +1.99%), selling 283,456 shares in a transaction estimated at $13.07 million.
What Happened
An SEC filing released Thursday shows Goodman Financial Corp sold its entire position in ABM Industries, reducing its holdings by 283,456 shares. The estimated transaction value was $13.07 million, calculated using the average closing price during the quarter.
What Else to Know
Top holdings following the filing:
- NYSEMKT: SPDW: $36.34 million (6.9% of AUM)
- NASDAQ: VCSH: $31.52 million (6.0% of AUM)
- NASDAQ: NXT: $28.75 million (5.4% of AUM)
- NASDAQ: VMBS: $23.61 million (4.5% of AUM)
- NYSE: SCHW: $19.80 million (3.7% of AUM)
As of Friday, ABM shares were priced at $44.12, down 13% over the past year and well underperforming the S&P 500, which is instead up about 17% in the same period.
Company Overview
| Metric | Value |
|---|---|
| Price (as of Monday) | $44.12 |
| Market capitalization | $2.70 billion |
| Revenue (TTM) | $8.75 billion |
| Net income (TTM) | $162.40 million |
Company Snapshot
- ABM Industries provides integrated facility solutions, including janitorial, engineering, parking, custodial, landscaping, mechanical, and electrical services, and vehicle maintenance for rental car providers.
- The company generates revenue through contracted facility services across multiple segments such as Business & Industry, Technology & Manufacturing, Education, Aviation, and Technical Solutions.
- It serves a broad client base in the United States and internationally, targeting commercial, educational, aviation, and industrial customers.
ABM Industries is a leading provider of facility services, leveraging a diversified portfolio to address the operational needs of clients across various sectors. ABM Industries has a strong presence in the U.S. and international markets and offers a broad range of facility services.
What this transaction means for investors
ABM is a defensive services name that has lagged badly while the broader market surged, so selling it seems like a reassessment of where Goodman’s capital can perhaps be more productive. Fundamentally, however, ABM just posted one of its strongest years. Fiscal 2025 revenue hit a record $8.7 billion, up 4.6% year over year, with adjusted EBITDA rising to $496.6 million. Meanwhile, the company generated $155 million in free cash flow, repurchased $121 million of stock, and raised its dividend 9%, extending a streak of 58 consecutive annual increases.
Goodman’s portfolio leans heavily toward broad equity ETFs and short-duration bond funds, alongside selective growth exposure and cash-like instruments. It’s also notable that last quarter Goodman also sold a sizable stake in LKQ Corporation, another underperforming name that has far lagged the broader market this year. Ultimately, this doesn’t seem to suggest Goodman has completely lost conviction in these names, but instead that it just views its capital can be better allocated elsewhere.
Glossary
13F reportable assets under management (AUM): The value of securities that an institutional investment manager must disclose quarterly to the SEC.
Quarter-end position: The value or number of shares held in a specific investment at the end of a financial quarter.
Exposure: The amount of risk or investment a fund has in a particular asset, sector, or market.
Stake: The ownership interest or shareholding an investor or fund holds in a company.
Integrated facility solutions: Comprehensive services provided to manage and maintain buildings and properties for clients.
Contracted facility services: Facility management services provided under formal agreements between a service provider and a client.
Segments: Distinct business divisions or categories within a company, often based on product, service, or customer type.
TTM: The 12-month period ending with the most recent quarterly report.
